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Realize the potential of sustainable business Life Cycle Assessment Workshop Dr. Rajesh Kumar Singh, Managing Director PE Sustainability Solutions Pvt Ltd, India A subsidiary of PE International AG, Germany
53

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Page 1: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Realize the potential of

sustainable business

Life Cycle Assessment Workshop

Dr Rajesh Kumar Singh Managing Director

PE Sustainability Solutions Pvt Ltd India

A subsidiary of PE International AG Germany

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

1 Welcome why me meet

2000+ man years experience ofhellip

235+ experts fromhellip

30+ nations withhellip

20+ Industrial Sectorshellip

23 offices withhellip

1 DNA

What we offer

Integrated solutions for product and corporate sustainability management

Corporate Sustainability

Sustainability Management

Solution

GRI CDP UN Global Compact

Reporting

Management Systems ISO

14001 OHSAS 18001 ISO

50001 etc

Corporate Footprint (Carbon

and Water)

Product Sustainability

Product Life Cycle Assessment

solution

Design for Environment

Product Footprint (Carbon and

Water)

Scenario analysis decision

support

SoFi Software

LCA amp Sustainability Databases Databases amp Content

Software

Sustainability Consulting

Sustainability Roadmap and

Strategy

Stakeholder Engagement and

CSR

Carbon amp Water Footprints

Life Cycle Assessment

Energy efficiency studies

Sustainability Impact Energy

Carbon

Water

Resources

Emissions

Waste

Labour

HampS

Profit

Brand

Social

Ethics

PE is the only player with an

end-to-end value propositionhellip

Enterprise

Building amp

Infrastructure

Transport amp

Logistics

Supply chain

Process

Product

Co

rpo

rate

Valu

e C

hain

Vertical markets

Electronics

High-tec Chemical

Transport

amp logistics

Automotive

Manufacuring

Agriculture

food

Aerospace

Oil amp gas

Construction

amp building

Packaging

Media

Metals amp

Mining

Consumer

goods

Tourism

Retail

Government

Finance

Energy amp

Utilities

Apparel

z

The best global green brands rely on PE

Source Interbrand Best Global Green Brands Ranking 2011

9 out of 10 Green brands

work with us

40 of the global Fortune 500

companies use our solutions

1500+ clients from every

industry sector

Automotive

20 years experience amp

leadership with

dedicated vertical

offering

Apparel Front runner high-

quality proprietary data

vertical offering

Building amp

Construction

EPDs and network to

GBCs 17 years in the

market

Chemicals Association work high-

quality proprietary data

deep industry expertise

Consumer

Goods

Ability to cover the

entire value chain incl

retail dedicated vertical

offering

Electronics High-quality proprietary

data amp models 15 years

in the market

Financial

Services

Association work

thought leadership amp

robust flexible software

Food amp

Beverage

Ability to cover the

entire value chain incl

retail

dedicated vertical

offering

Industry

Associations

Understanding of the

industry needs

dedicated vertical

offering amp content

Metals and

Mining

Ability to cover all

aspects of sustainability

benchmarking

capability

hellipand is the market leader in all key verticals 40 of the Fortune Global 500 companies are customers of PE

8

Industry Sample customers PElsquos USP

Intuitive interactive

decision-guidance tool powered by

GaBi 6 software and DBrsquo12

GaBi Envision

Professional LCA

modeling software

GaBi 6

Design for x

[compliance

recycling etc]

GaBi DfX

GaBi Software Suite

For

LCA practitioners

For

Instant scenario

analysis

For

Non-LCA experts who

need expert answers

For

Integration GaBi 6

with PLMERP

Comparable robust and up to date industry LCI Data underlies expert LCAs

GaBi Databases rsquo12 Chemicals Energy Precious and Non-Precious Metals Plastics End of Life Manufacturing

Electronics Renewables hellip and external databases like USLCI ecoinvent

9

GaBi is the most widely used product sustainability

solution on the planet

10

bull Helps businesses achieve optimal product

sustainabilty performance

- Environmental

- Social

- Economic

bull GaBi is a modelling reporting amp diagnostic

software tool that drives product sustainability

performance during design planning and

production

bull Powerful LCA tools and databases for product

and process sustainability

Product Sustainability Performance (PSP) GaBi solves the following business challenges

Life Cycle Assessment

bull Design for Environment Product Stewardship

bull Energy-efficiency eco-efficiency

bull Eco-design

bull Sustainable value chains

Life Cycle Costing

bull Design for cost reduction

bull Integration of external cost

Life Cycle Working Environment

bull Developing manufacturing process that address social responsibilities

Life Cycle Reporting

bull Product marketing sustainability labels Environmental Product Declarations and credentials

bull Environmental communication amp sustainability reporting

bull LCA knowledge sharing

11 11112013

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 2: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

1 Welcome why me meet

2000+ man years experience ofhellip

235+ experts fromhellip

30+ nations withhellip

20+ Industrial Sectorshellip

23 offices withhellip

1 DNA

What we offer

Integrated solutions for product and corporate sustainability management

Corporate Sustainability

Sustainability Management

Solution

GRI CDP UN Global Compact

Reporting

Management Systems ISO

14001 OHSAS 18001 ISO

50001 etc

Corporate Footprint (Carbon

and Water)

Product Sustainability

Product Life Cycle Assessment

solution

Design for Environment

Product Footprint (Carbon and

Water)

Scenario analysis decision

support

SoFi Software

LCA amp Sustainability Databases Databases amp Content

Software

Sustainability Consulting

Sustainability Roadmap and

Strategy

Stakeholder Engagement and

CSR

Carbon amp Water Footprints

Life Cycle Assessment

Energy efficiency studies

Sustainability Impact Energy

Carbon

Water

Resources

Emissions

Waste

Labour

HampS

Profit

Brand

Social

Ethics

PE is the only player with an

end-to-end value propositionhellip

Enterprise

Building amp

Infrastructure

Transport amp

Logistics

Supply chain

Process

Product

Co

rpo

rate

Valu

e C

hain

Vertical markets

Electronics

High-tec Chemical

Transport

amp logistics

Automotive

Manufacuring

Agriculture

food

Aerospace

Oil amp gas

Construction

amp building

Packaging

Media

Metals amp

Mining

Consumer

goods

Tourism

Retail

Government

Finance

Energy amp

Utilities

Apparel

z

The best global green brands rely on PE

Source Interbrand Best Global Green Brands Ranking 2011

9 out of 10 Green brands

work with us

40 of the global Fortune 500

companies use our solutions

1500+ clients from every

industry sector

Automotive

20 years experience amp

leadership with

dedicated vertical

offering

Apparel Front runner high-

quality proprietary data

vertical offering

Building amp

Construction

EPDs and network to

GBCs 17 years in the

market

Chemicals Association work high-

quality proprietary data

deep industry expertise

Consumer

Goods

Ability to cover the

entire value chain incl

retail dedicated vertical

offering

Electronics High-quality proprietary

data amp models 15 years

in the market

Financial

Services

Association work

thought leadership amp

robust flexible software

Food amp

Beverage

Ability to cover the

entire value chain incl

retail

dedicated vertical

offering

Industry

Associations

Understanding of the

industry needs

dedicated vertical

offering amp content

Metals and

Mining

Ability to cover all

aspects of sustainability

benchmarking

capability

hellipand is the market leader in all key verticals 40 of the Fortune Global 500 companies are customers of PE

8

Industry Sample customers PElsquos USP

Intuitive interactive

decision-guidance tool powered by

GaBi 6 software and DBrsquo12

GaBi Envision

Professional LCA

modeling software

GaBi 6

Design for x

[compliance

recycling etc]

GaBi DfX

GaBi Software Suite

For

LCA practitioners

For

Instant scenario

analysis

For

Non-LCA experts who

need expert answers

For

Integration GaBi 6

with PLMERP

Comparable robust and up to date industry LCI Data underlies expert LCAs

GaBi Databases rsquo12 Chemicals Energy Precious and Non-Precious Metals Plastics End of Life Manufacturing

Electronics Renewables hellip and external databases like USLCI ecoinvent

9

GaBi is the most widely used product sustainability

solution on the planet

10

bull Helps businesses achieve optimal product

sustainabilty performance

- Environmental

- Social

- Economic

bull GaBi is a modelling reporting amp diagnostic

software tool that drives product sustainability

performance during design planning and

production

bull Powerful LCA tools and databases for product

and process sustainability

Product Sustainability Performance (PSP) GaBi solves the following business challenges

Life Cycle Assessment

bull Design for Environment Product Stewardship

bull Energy-efficiency eco-efficiency

bull Eco-design

bull Sustainable value chains

Life Cycle Costing

bull Design for cost reduction

bull Integration of external cost

Life Cycle Working Environment

bull Developing manufacturing process that address social responsibilities

Life Cycle Reporting

bull Product marketing sustainability labels Environmental Product Declarations and credentials

bull Environmental communication amp sustainability reporting

bull LCA knowledge sharing

11 11112013

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 3: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

1 Welcome why me meet

2000+ man years experience ofhellip

235+ experts fromhellip

30+ nations withhellip

20+ Industrial Sectorshellip

23 offices withhellip

1 DNA

What we offer

Integrated solutions for product and corporate sustainability management

Corporate Sustainability

Sustainability Management

Solution

GRI CDP UN Global Compact

Reporting

Management Systems ISO

14001 OHSAS 18001 ISO

50001 etc

Corporate Footprint (Carbon

and Water)

Product Sustainability

Product Life Cycle Assessment

solution

Design for Environment

Product Footprint (Carbon and

Water)

Scenario analysis decision

support

SoFi Software

LCA amp Sustainability Databases Databases amp Content

Software

Sustainability Consulting

Sustainability Roadmap and

Strategy

Stakeholder Engagement and

CSR

Carbon amp Water Footprints

Life Cycle Assessment

Energy efficiency studies

Sustainability Impact Energy

Carbon

Water

Resources

Emissions

Waste

Labour

HampS

Profit

Brand

Social

Ethics

PE is the only player with an

end-to-end value propositionhellip

Enterprise

Building amp

Infrastructure

Transport amp

Logistics

Supply chain

Process

Product

Co

rpo

rate

Valu

e C

hain

Vertical markets

Electronics

High-tec Chemical

Transport

amp logistics

Automotive

Manufacuring

Agriculture

food

Aerospace

Oil amp gas

Construction

amp building

Packaging

Media

Metals amp

Mining

Consumer

goods

Tourism

Retail

Government

Finance

Energy amp

Utilities

Apparel

z

The best global green brands rely on PE

Source Interbrand Best Global Green Brands Ranking 2011

9 out of 10 Green brands

work with us

40 of the global Fortune 500

companies use our solutions

1500+ clients from every

industry sector

Automotive

20 years experience amp

leadership with

dedicated vertical

offering

Apparel Front runner high-

quality proprietary data

vertical offering

Building amp

Construction

EPDs and network to

GBCs 17 years in the

market

Chemicals Association work high-

quality proprietary data

deep industry expertise

Consumer

Goods

Ability to cover the

entire value chain incl

retail dedicated vertical

offering

Electronics High-quality proprietary

data amp models 15 years

in the market

Financial

Services

Association work

thought leadership amp

robust flexible software

Food amp

Beverage

Ability to cover the

entire value chain incl

retail

dedicated vertical

offering

Industry

Associations

Understanding of the

industry needs

dedicated vertical

offering amp content

Metals and

Mining

Ability to cover all

aspects of sustainability

benchmarking

capability

hellipand is the market leader in all key verticals 40 of the Fortune Global 500 companies are customers of PE

8

Industry Sample customers PElsquos USP

Intuitive interactive

decision-guidance tool powered by

GaBi 6 software and DBrsquo12

GaBi Envision

Professional LCA

modeling software

GaBi 6

Design for x

[compliance

recycling etc]

GaBi DfX

GaBi Software Suite

For

LCA practitioners

For

Instant scenario

analysis

For

Non-LCA experts who

need expert answers

For

Integration GaBi 6

with PLMERP

Comparable robust and up to date industry LCI Data underlies expert LCAs

GaBi Databases rsquo12 Chemicals Energy Precious and Non-Precious Metals Plastics End of Life Manufacturing

Electronics Renewables hellip and external databases like USLCI ecoinvent

9

GaBi is the most widely used product sustainability

solution on the planet

10

bull Helps businesses achieve optimal product

sustainabilty performance

- Environmental

- Social

- Economic

bull GaBi is a modelling reporting amp diagnostic

software tool that drives product sustainability

performance during design planning and

production

bull Powerful LCA tools and databases for product

and process sustainability

Product Sustainability Performance (PSP) GaBi solves the following business challenges

Life Cycle Assessment

bull Design for Environment Product Stewardship

bull Energy-efficiency eco-efficiency

bull Eco-design

bull Sustainable value chains

Life Cycle Costing

bull Design for cost reduction

bull Integration of external cost

Life Cycle Working Environment

bull Developing manufacturing process that address social responsibilities

Life Cycle Reporting

bull Product marketing sustainability labels Environmental Product Declarations and credentials

bull Environmental communication amp sustainability reporting

bull LCA knowledge sharing

11 11112013

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 4: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

What we offer

Integrated solutions for product and corporate sustainability management

Corporate Sustainability

Sustainability Management

Solution

GRI CDP UN Global Compact

Reporting

Management Systems ISO

14001 OHSAS 18001 ISO

50001 etc

Corporate Footprint (Carbon

and Water)

Product Sustainability

Product Life Cycle Assessment

solution

Design for Environment

Product Footprint (Carbon and

Water)

Scenario analysis decision

support

SoFi Software

LCA amp Sustainability Databases Databases amp Content

Software

Sustainability Consulting

Sustainability Roadmap and

Strategy

Stakeholder Engagement and

CSR

Carbon amp Water Footprints

Life Cycle Assessment

Energy efficiency studies

Sustainability Impact Energy

Carbon

Water

Resources

Emissions

Waste

Labour

HampS

Profit

Brand

Social

Ethics

PE is the only player with an

end-to-end value propositionhellip

Enterprise

Building amp

Infrastructure

Transport amp

Logistics

Supply chain

Process

Product

Co

rpo

rate

Valu

e C

hain

Vertical markets

Electronics

High-tec Chemical

Transport

amp logistics

Automotive

Manufacuring

Agriculture

food

Aerospace

Oil amp gas

Construction

amp building

Packaging

Media

Metals amp

Mining

Consumer

goods

Tourism

Retail

Government

Finance

Energy amp

Utilities

Apparel

z

The best global green brands rely on PE

Source Interbrand Best Global Green Brands Ranking 2011

9 out of 10 Green brands

work with us

40 of the global Fortune 500

companies use our solutions

1500+ clients from every

industry sector

Automotive

20 years experience amp

leadership with

dedicated vertical

offering

Apparel Front runner high-

quality proprietary data

vertical offering

Building amp

Construction

EPDs and network to

GBCs 17 years in the

market

Chemicals Association work high-

quality proprietary data

deep industry expertise

Consumer

Goods

Ability to cover the

entire value chain incl

retail dedicated vertical

offering

Electronics High-quality proprietary

data amp models 15 years

in the market

Financial

Services

Association work

thought leadership amp

robust flexible software

Food amp

Beverage

Ability to cover the

entire value chain incl

retail

dedicated vertical

offering

Industry

Associations

Understanding of the

industry needs

dedicated vertical

offering amp content

Metals and

Mining

Ability to cover all

aspects of sustainability

benchmarking

capability

hellipand is the market leader in all key verticals 40 of the Fortune Global 500 companies are customers of PE

8

Industry Sample customers PElsquos USP

Intuitive interactive

decision-guidance tool powered by

GaBi 6 software and DBrsquo12

GaBi Envision

Professional LCA

modeling software

GaBi 6

Design for x

[compliance

recycling etc]

GaBi DfX

GaBi Software Suite

For

LCA practitioners

For

Instant scenario

analysis

For

Non-LCA experts who

need expert answers

For

Integration GaBi 6

with PLMERP

Comparable robust and up to date industry LCI Data underlies expert LCAs

GaBi Databases rsquo12 Chemicals Energy Precious and Non-Precious Metals Plastics End of Life Manufacturing

Electronics Renewables hellip and external databases like USLCI ecoinvent

9

GaBi is the most widely used product sustainability

solution on the planet

10

bull Helps businesses achieve optimal product

sustainabilty performance

- Environmental

- Social

- Economic

bull GaBi is a modelling reporting amp diagnostic

software tool that drives product sustainability

performance during design planning and

production

bull Powerful LCA tools and databases for product

and process sustainability

Product Sustainability Performance (PSP) GaBi solves the following business challenges

Life Cycle Assessment

bull Design for Environment Product Stewardship

bull Energy-efficiency eco-efficiency

bull Eco-design

bull Sustainable value chains

Life Cycle Costing

bull Design for cost reduction

bull Integration of external cost

Life Cycle Working Environment

bull Developing manufacturing process that address social responsibilities

Life Cycle Reporting

bull Product marketing sustainability labels Environmental Product Declarations and credentials

bull Environmental communication amp sustainability reporting

bull LCA knowledge sharing

11 11112013

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 5: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Sustainability Impact Energy

Carbon

Water

Resources

Emissions

Waste

Labour

HampS

Profit

Brand

Social

Ethics

PE is the only player with an

end-to-end value propositionhellip

Enterprise

Building amp

Infrastructure

Transport amp

Logistics

Supply chain

Process

Product

Co

rpo

rate

Valu

e C

hain

Vertical markets

Electronics

High-tec Chemical

Transport

amp logistics

Automotive

Manufacuring

Agriculture

food

Aerospace

Oil amp gas

Construction

amp building

Packaging

Media

Metals amp

Mining

Consumer

goods

Tourism

Retail

Government

Finance

Energy amp

Utilities

Apparel

z

The best global green brands rely on PE

Source Interbrand Best Global Green Brands Ranking 2011

9 out of 10 Green brands

work with us

40 of the global Fortune 500

companies use our solutions

1500+ clients from every

industry sector

Automotive

20 years experience amp

leadership with

dedicated vertical

offering

Apparel Front runner high-

quality proprietary data

vertical offering

Building amp

Construction

EPDs and network to

GBCs 17 years in the

market

Chemicals Association work high-

quality proprietary data

deep industry expertise

Consumer

Goods

Ability to cover the

entire value chain incl

retail dedicated vertical

offering

Electronics High-quality proprietary

data amp models 15 years

in the market

Financial

Services

Association work

thought leadership amp

robust flexible software

Food amp

Beverage

Ability to cover the

entire value chain incl

retail

dedicated vertical

offering

Industry

Associations

Understanding of the

industry needs

dedicated vertical

offering amp content

Metals and

Mining

Ability to cover all

aspects of sustainability

benchmarking

capability

hellipand is the market leader in all key verticals 40 of the Fortune Global 500 companies are customers of PE

8

Industry Sample customers PElsquos USP

Intuitive interactive

decision-guidance tool powered by

GaBi 6 software and DBrsquo12

GaBi Envision

Professional LCA

modeling software

GaBi 6

Design for x

[compliance

recycling etc]

GaBi DfX

GaBi Software Suite

For

LCA practitioners

For

Instant scenario

analysis

For

Non-LCA experts who

need expert answers

For

Integration GaBi 6

with PLMERP

Comparable robust and up to date industry LCI Data underlies expert LCAs

GaBi Databases rsquo12 Chemicals Energy Precious and Non-Precious Metals Plastics End of Life Manufacturing

Electronics Renewables hellip and external databases like USLCI ecoinvent

9

GaBi is the most widely used product sustainability

solution on the planet

10

bull Helps businesses achieve optimal product

sustainabilty performance

- Environmental

- Social

- Economic

bull GaBi is a modelling reporting amp diagnostic

software tool that drives product sustainability

performance during design planning and

production

bull Powerful LCA tools and databases for product

and process sustainability

Product Sustainability Performance (PSP) GaBi solves the following business challenges

Life Cycle Assessment

bull Design for Environment Product Stewardship

bull Energy-efficiency eco-efficiency

bull Eco-design

bull Sustainable value chains

Life Cycle Costing

bull Design for cost reduction

bull Integration of external cost

Life Cycle Working Environment

bull Developing manufacturing process that address social responsibilities

Life Cycle Reporting

bull Product marketing sustainability labels Environmental Product Declarations and credentials

bull Environmental communication amp sustainability reporting

bull LCA knowledge sharing

11 11112013

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 6: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Vertical markets

Electronics

High-tec Chemical

Transport

amp logistics

Automotive

Manufacuring

Agriculture

food

Aerospace

Oil amp gas

Construction

amp building

Packaging

Media

Metals amp

Mining

Consumer

goods

Tourism

Retail

Government

Finance

Energy amp

Utilities

Apparel

z

The best global green brands rely on PE

Source Interbrand Best Global Green Brands Ranking 2011

9 out of 10 Green brands

work with us

40 of the global Fortune 500

companies use our solutions

1500+ clients from every

industry sector

Automotive

20 years experience amp

leadership with

dedicated vertical

offering

Apparel Front runner high-

quality proprietary data

vertical offering

Building amp

Construction

EPDs and network to

GBCs 17 years in the

market

Chemicals Association work high-

quality proprietary data

deep industry expertise

Consumer

Goods

Ability to cover the

entire value chain incl

retail dedicated vertical

offering

Electronics High-quality proprietary

data amp models 15 years

in the market

Financial

Services

Association work

thought leadership amp

robust flexible software

Food amp

Beverage

Ability to cover the

entire value chain incl

retail

dedicated vertical

offering

Industry

Associations

Understanding of the

industry needs

dedicated vertical

offering amp content

Metals and

Mining

Ability to cover all

aspects of sustainability

benchmarking

capability

hellipand is the market leader in all key verticals 40 of the Fortune Global 500 companies are customers of PE

8

Industry Sample customers PElsquos USP

Intuitive interactive

decision-guidance tool powered by

GaBi 6 software and DBrsquo12

GaBi Envision

Professional LCA

modeling software

GaBi 6

Design for x

[compliance

recycling etc]

GaBi DfX

GaBi Software Suite

For

LCA practitioners

For

Instant scenario

analysis

For

Non-LCA experts who

need expert answers

For

Integration GaBi 6

with PLMERP

Comparable robust and up to date industry LCI Data underlies expert LCAs

GaBi Databases rsquo12 Chemicals Energy Precious and Non-Precious Metals Plastics End of Life Manufacturing

Electronics Renewables hellip and external databases like USLCI ecoinvent

9

GaBi is the most widely used product sustainability

solution on the planet

10

bull Helps businesses achieve optimal product

sustainabilty performance

- Environmental

- Social

- Economic

bull GaBi is a modelling reporting amp diagnostic

software tool that drives product sustainability

performance during design planning and

production

bull Powerful LCA tools and databases for product

and process sustainability

Product Sustainability Performance (PSP) GaBi solves the following business challenges

Life Cycle Assessment

bull Design for Environment Product Stewardship

bull Energy-efficiency eco-efficiency

bull Eco-design

bull Sustainable value chains

Life Cycle Costing

bull Design for cost reduction

bull Integration of external cost

Life Cycle Working Environment

bull Developing manufacturing process that address social responsibilities

Life Cycle Reporting

bull Product marketing sustainability labels Environmental Product Declarations and credentials

bull Environmental communication amp sustainability reporting

bull LCA knowledge sharing

11 11112013

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 7: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

z

The best global green brands rely on PE

Source Interbrand Best Global Green Brands Ranking 2011

9 out of 10 Green brands

work with us

40 of the global Fortune 500

companies use our solutions

1500+ clients from every

industry sector

Automotive

20 years experience amp

leadership with

dedicated vertical

offering

Apparel Front runner high-

quality proprietary data

vertical offering

Building amp

Construction

EPDs and network to

GBCs 17 years in the

market

Chemicals Association work high-

quality proprietary data

deep industry expertise

Consumer

Goods

Ability to cover the

entire value chain incl

retail dedicated vertical

offering

Electronics High-quality proprietary

data amp models 15 years

in the market

Financial

Services

Association work

thought leadership amp

robust flexible software

Food amp

Beverage

Ability to cover the

entire value chain incl

retail

dedicated vertical

offering

Industry

Associations

Understanding of the

industry needs

dedicated vertical

offering amp content

Metals and

Mining

Ability to cover all

aspects of sustainability

benchmarking

capability

hellipand is the market leader in all key verticals 40 of the Fortune Global 500 companies are customers of PE

8

Industry Sample customers PElsquos USP

Intuitive interactive

decision-guidance tool powered by

GaBi 6 software and DBrsquo12

GaBi Envision

Professional LCA

modeling software

GaBi 6

Design for x

[compliance

recycling etc]

GaBi DfX

GaBi Software Suite

For

LCA practitioners

For

Instant scenario

analysis

For

Non-LCA experts who

need expert answers

For

Integration GaBi 6

with PLMERP

Comparable robust and up to date industry LCI Data underlies expert LCAs

GaBi Databases rsquo12 Chemicals Energy Precious and Non-Precious Metals Plastics End of Life Manufacturing

Electronics Renewables hellip and external databases like USLCI ecoinvent

9

GaBi is the most widely used product sustainability

solution on the planet

10

bull Helps businesses achieve optimal product

sustainabilty performance

- Environmental

- Social

- Economic

bull GaBi is a modelling reporting amp diagnostic

software tool that drives product sustainability

performance during design planning and

production

bull Powerful LCA tools and databases for product

and process sustainability

Product Sustainability Performance (PSP) GaBi solves the following business challenges

Life Cycle Assessment

bull Design for Environment Product Stewardship

bull Energy-efficiency eco-efficiency

bull Eco-design

bull Sustainable value chains

Life Cycle Costing

bull Design for cost reduction

bull Integration of external cost

Life Cycle Working Environment

bull Developing manufacturing process that address social responsibilities

Life Cycle Reporting

bull Product marketing sustainability labels Environmental Product Declarations and credentials

bull Environmental communication amp sustainability reporting

bull LCA knowledge sharing

11 11112013

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 8: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Automotive

20 years experience amp

leadership with

dedicated vertical

offering

Apparel Front runner high-

quality proprietary data

vertical offering

Building amp

Construction

EPDs and network to

GBCs 17 years in the

market

Chemicals Association work high-

quality proprietary data

deep industry expertise

Consumer

Goods

Ability to cover the

entire value chain incl

retail dedicated vertical

offering

Electronics High-quality proprietary

data amp models 15 years

in the market

Financial

Services

Association work

thought leadership amp

robust flexible software

Food amp

Beverage

Ability to cover the

entire value chain incl

retail

dedicated vertical

offering

Industry

Associations

Understanding of the

industry needs

dedicated vertical

offering amp content

Metals and

Mining

Ability to cover all

aspects of sustainability

benchmarking

capability

hellipand is the market leader in all key verticals 40 of the Fortune Global 500 companies are customers of PE

8

Industry Sample customers PElsquos USP

Intuitive interactive

decision-guidance tool powered by

GaBi 6 software and DBrsquo12

GaBi Envision

Professional LCA

modeling software

GaBi 6

Design for x

[compliance

recycling etc]

GaBi DfX

GaBi Software Suite

For

LCA practitioners

For

Instant scenario

analysis

For

Non-LCA experts who

need expert answers

For

Integration GaBi 6

with PLMERP

Comparable robust and up to date industry LCI Data underlies expert LCAs

GaBi Databases rsquo12 Chemicals Energy Precious and Non-Precious Metals Plastics End of Life Manufacturing

Electronics Renewables hellip and external databases like USLCI ecoinvent

9

GaBi is the most widely used product sustainability

solution on the planet

10

bull Helps businesses achieve optimal product

sustainabilty performance

- Environmental

- Social

- Economic

bull GaBi is a modelling reporting amp diagnostic

software tool that drives product sustainability

performance during design planning and

production

bull Powerful LCA tools and databases for product

and process sustainability

Product Sustainability Performance (PSP) GaBi solves the following business challenges

Life Cycle Assessment

bull Design for Environment Product Stewardship

bull Energy-efficiency eco-efficiency

bull Eco-design

bull Sustainable value chains

Life Cycle Costing

bull Design for cost reduction

bull Integration of external cost

Life Cycle Working Environment

bull Developing manufacturing process that address social responsibilities

Life Cycle Reporting

bull Product marketing sustainability labels Environmental Product Declarations and credentials

bull Environmental communication amp sustainability reporting

bull LCA knowledge sharing

11 11112013

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 9: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Intuitive interactive

decision-guidance tool powered by

GaBi 6 software and DBrsquo12

GaBi Envision

Professional LCA

modeling software

GaBi 6

Design for x

[compliance

recycling etc]

GaBi DfX

GaBi Software Suite

For

LCA practitioners

For

Instant scenario

analysis

For

Non-LCA experts who

need expert answers

For

Integration GaBi 6

with PLMERP

Comparable robust and up to date industry LCI Data underlies expert LCAs

GaBi Databases rsquo12 Chemicals Energy Precious and Non-Precious Metals Plastics End of Life Manufacturing

Electronics Renewables hellip and external databases like USLCI ecoinvent

9

GaBi is the most widely used product sustainability

solution on the planet

10

bull Helps businesses achieve optimal product

sustainabilty performance

- Environmental

- Social

- Economic

bull GaBi is a modelling reporting amp diagnostic

software tool that drives product sustainability

performance during design planning and

production

bull Powerful LCA tools and databases for product

and process sustainability

Product Sustainability Performance (PSP) GaBi solves the following business challenges

Life Cycle Assessment

bull Design for Environment Product Stewardship

bull Energy-efficiency eco-efficiency

bull Eco-design

bull Sustainable value chains

Life Cycle Costing

bull Design for cost reduction

bull Integration of external cost

Life Cycle Working Environment

bull Developing manufacturing process that address social responsibilities

Life Cycle Reporting

bull Product marketing sustainability labels Environmental Product Declarations and credentials

bull Environmental communication amp sustainability reporting

bull LCA knowledge sharing

11 11112013

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 10: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

GaBi is the most widely used product sustainability

solution on the planet

10

bull Helps businesses achieve optimal product

sustainabilty performance

- Environmental

- Social

- Economic

bull GaBi is a modelling reporting amp diagnostic

software tool that drives product sustainability

performance during design planning and

production

bull Powerful LCA tools and databases for product

and process sustainability

Product Sustainability Performance (PSP) GaBi solves the following business challenges

Life Cycle Assessment

bull Design for Environment Product Stewardship

bull Energy-efficiency eco-efficiency

bull Eco-design

bull Sustainable value chains

Life Cycle Costing

bull Design for cost reduction

bull Integration of external cost

Life Cycle Working Environment

bull Developing manufacturing process that address social responsibilities

Life Cycle Reporting

bull Product marketing sustainability labels Environmental Product Declarations and credentials

bull Environmental communication amp sustainability reporting

bull LCA knowledge sharing

11 11112013

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 11: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Product Sustainability Performance (PSP) GaBi solves the following business challenges

Life Cycle Assessment

bull Design for Environment Product Stewardship

bull Energy-efficiency eco-efficiency

bull Eco-design

bull Sustainable value chains

Life Cycle Costing

bull Design for cost reduction

bull Integration of external cost

Life Cycle Working Environment

bull Developing manufacturing process that address social responsibilities

Life Cycle Reporting

bull Product marketing sustainability labels Environmental Product Declarations and credentials

bull Environmental communication amp sustainability reporting

bull LCA knowledge sharing

11 11112013

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 12: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

The Expert Choice

12

Databases

amp more

Industrial data

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 13: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

GaBi assesses the life cycle of any

producthellip

13

bull hellipbreaking it down into every

part material and process

then analyzing all related

supply chain components

bull hellipfor every phase in its life

cycle (growthmining

manufacturing transport

use end-of-life)

bull hellipfor any quantifiable

sustainability metric (energy

resources water used

emissions and ecological

impact ecological footprint

social impactshellip) enabling

identification of trade-offs

bull to determine the best

product design possible

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 14: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

What is SoFi

SoFi is a software modeling reporting amp diagnostic

platform for the enterprise

bull Helps achieve improved sustainability

performance across operations and the supply chain

- Environmental

- Social

- Economic

bull Aggregates disparate data and presents a complete

visualization of a companyrsquos sustainability performance

bull Diagnoses performance gaps using industry benchmarks

and automatically suggests remedial actions

bull Monitors improvement plans amp sustainability KPIs

bull Reports for internal and external stakeholders

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 15: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Application areas

z Enterprise energy management bull Facilities amp assets bull Building portfolios

Sustainability reporting bull Responding to sustainability rating organizations bull Improving scores amp rankings

Environmental management bull ISO 14001 EMAS bull Work Safety Reporting

Carbon amp water management bull Carbon Footprint (Scope 12 amp 3) bull Reduction initiatives bull Voluntary amp mandatory reporting

Sustainable supply chain bull Supplier assessment ranking and rating bull Performance management for suppliers

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 16: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

First Accredited Provider amp

Gold Data Partner of CDP ldquoThe high quality SoFi Software solutions from our gold

carbon calculation partner PE INTERNATIONAL have

been tested by an independent third party and meet CDP

standards of greenhouse gas emissions calculation CDP

is delighted to recommend the SoFi Software solutions in

helping companies to measure and manage carbon

performance effectivelyrdquo

Paul Simpson Chief Executive Officer Carbon

Disclosure Project

ldquoGRI is pleased to confirm that SoFi contains precise

GRI content it is the first sustainability reporting tool

which has fulfilled all the requirements of the GRI

Certified Software and Tools Programrdquo

Dr Nelmara Arbex Director of Learning Services

Global Reporting Initiative

PE is a GRI Organizational Stakeholder since 2005 and

has been supporter and sponsor of the GRI

conferences since the launch in 2006

First verified solution by GRI

G4 G31 G3 Content

SoFi Accreditations

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 17: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 18: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Principles of Life Cycle Assessment What is LCA

18

Life Cycle Assessment is the compiling and evaluation of the input

and outputs and the potential environmental impacts of a product

system during its lifetime

Definition of Life Cycle Assessment from DIN ISO 14044

LCA

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 19: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Raw Materials

Final Disposal

Life Cycle Thinkinghellip

A lens to assess your business amp supply chain sustainability

Recycling

Materials

Manufacture

Products

Manufacture

Transportation amp Manufacture

Use

19

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 20: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

20 11112013

Life Cycle Thinking an example for applied Life Cycle Thinking hellip

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 21: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

bull The framework for calculation of Life Cycle Assessments are the ISO-standards

1404014044

bull ISO definition

bull Life Cycle Assessment (LCA) is the compiling and evaluation of the input and

outputs and the potential environmental impacts of a product system during its

lifetime

bull The results of Life Cycle Assessments are

bull A quantification of the inputs and outputs for a product life cycle

Life Cycle Inventory

bull A quantification of the potential environmental impacts eg Global Warming Potential

Acidification Potential Ozone Depletion Potential

Life Cycle Impact Assessment

Basics of Life Cycle Assessment

21

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 22: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

22 11112013

Life Cycle Thinking Methods amp implementation ndash Life Cycle Assessment (LCA) ISO 1404044

Life Cycle Assessment (LCA)

Goal and scope

definition

Inventory analysis

Impact assessment

Inte

rpre

tation

LCA framework Direct applications

Product development

and improvement

Strategic planning

Public policy making

Marketing

Other

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 23: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Basics of Life Cycle Assessment

End of Life Phase Production Phase Use Phase

Manufacture

bull Rotor

bull Nacelle

bull Tower

bull Cables

bull Transport to

site

Construction

bull Site works and

buildings

bull Foundations

bull Erection

End of life

bull Dismantling

bull Recycling

bull Landfill

bull Energy

recovery

Operation

bull Maintenance

bull Replacement

parts

bull Power

generation

23 All slides copyright PE INTERNATIONAL

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 24: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Basics of Life Cycle Assessment

24

Phases of the

life cycle

Impact

assessment

Energy consumption Raw material consumption

Global warming Summer smog Acidification Over fertilisation

Environmental toxins Waste etc

Production phase Use phase End of Life

Life cycle

stages

Preparation of

raw materials

Manufacturing

Pre-products Production Use

Disposal

Recycling

Deposition

Inventory

analysis

I N P U T R e s o u r c e s

O U T P U T E m i s s i o n s a n d W a s t e

ldquoCradle to gaterdquo

ldquoCradle to graverdquo

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 25: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

LCA Step by step

bull Definition of the goal of the study

bull Agreement on the scope of the project

bull Description of the functional unit ie reference unit

bull Set up of the Life Cycle Inventory

Data collection identification of the relevant material and energy flows

bull Calculation of the Impact Assessment

bull Evaluation and Interpretation of the results

bull Documentation in a detailed report

bull Critical Review

optional to increase the credibility

obligatory for comparative studies

25

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 26: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

26

Task Firstly define the intended Goal of your study in a short statement summarising

- the intended application and reasons for carrying out the study

- the intended audience for communication of results

- whether the results will be used for comparison and will comparative assertions be publicly disclosed

Hints Choose to study a product system you are familiar with For example the goal could be

bull To understand the life cycle impacts of a product a process or a service provided

bull To investigate the trade-offs in making changes to one aspect of a product life cycle

bull To compare the life cycle environmental impacts of two systems providing the same service

bull To understand life cycle environmental impacts of implementing a government policy

The next step will consider the Scope of the study

Step 1 Define the Goal

All slides copyright PE INTERNATIONAL

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 27: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

27

Task Outline the Scope of the system under study in a few bullet points

Hints Think about the goal of your study and the product system

bull What is the function of the product system(s) to be studied

bull Does it include the product use phase or end-of-life phase

bull Is the scope cradle to gate or cradle to grave

bull Are there any key co-products produced by the system

bull If you are studying two comparative systems are their common elements to each

system Can these common elements be ignored

The next step will illustrate the system(s) in a flow diagram

Step 2 Outline the Scope

All slides copyright PE INTERNATIONAL

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 28: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

28

Task Sketch a simple process flow diagram that illustrates the main life cycle processes that are relevant to your study

Hint The life cycle sketch could include

bull The main life cycle stages eg raw materials processing product use disposal transport steps

bull If you are undertaking a comparative study include both relevant systems

bull Note the functional output of your system

bull Each unit process should be described showing where the process begins and ends

bull Include any key co-products produced by the system

bull Is there any closed looped re-cycling or re-use within the system scope

The next step will illustrate the key inputs and outputs of the system

Step 3 Outline the Scope ndash sketch a flow diagram

All slides copyright PE INTERNATIONAL

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 29: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

29

Task Include the key Inputs and Outputs to your system flow diagram and define the System Boundary

Hint The system boundary includes the unit processes within the scope of the study

bull The system boundary should be consistent with the goal of the study

bull Think about the level of detail required for each unit process Are there cut-off criteria

bull If you decide to ignore or delete processes make a note of your reasons

bull Energy inputs and outputs should be included (all types of energy used)

bull You could make a distinction between foreground processes and background processes

The next step will define the Functional Unit of the system

Step 4 Define the System Boundary

All slides copyright PE INTERNATIONAL

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 30: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

30

Task Define the Functional Unit for the study

Hint The functional unit provides a reference to which all input and

output data are normalised It shall be clearly defined and

measureable

bull The functional unit should be consistent with the goal of the study

bull Different studies can be compared based on the functional unit

A textile example could be

One square meter of 200 gram square metre jersey fabric dyed black

The next step will define the data to be collected for the life cycle

inventory

Step 5 Define the Functional Unit

All slides copyright PE INTERNATIONAL

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 31: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

31

Task List the key life cycle inventory data to be collected

Hint Think about the types of impacts and data requirements

bull Consider all relevant inputs and outputs

bull Include emissions to air discharge to water and solid waste

bull Consider fugitive emissions and ancillary input materials

bull Include recycled materials

bull Define any assumptions or data gaps clearly

The next steps would be to begin data collection data quality review

and modelling

Step 6 Data Collection Preparation

All slides copyright PE INTERNATIONAL

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 32: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Life Cycle Assessment Classification and Characterisation

32 All slides copyright PE INTERNATIONAL

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 33: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Midpoints indicators

33

Popular problem-oriented (midpoint) methods are

CML indicators developed in The Netherlands

TRACI developed by the US EPA

Other currently used LCIA methods include

bull damage-oriented (endpoint) methods like EPS and Eco-

Indicator99 (Dutch)

bull distance-to-target methods like the Critical Volumes approach of

BUWAL the Swiss EPA

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 34: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Effect Increased warming of the troposphere due to anthropogenic greenhouse

gases eg from the burning of fossil fuels

Reference Substance Carbon Dioxide (CO2)

Reference Unit kg CO2-Equivalent

Source IPCC (Intergovernmental Panel on Climatic Change)

CO2 CH4

CFCs

UV - radiation

AbsorptionReflection

Infraredradiation

Trace gases in th

e a

tmosphere

34

Life Cycle Impact Assessment Global Warming Potential (GWP)

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 35: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Effect Reduction in the ozone concentration of the Stratosphere due to emissions

such as Chloro-fluoro-carbons (CFCs)

Reference Substance Tri-chloro-fluoro-methane (R11)

Reference Unit kg R11-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Ozone Depletion Potential (ODP)

CFCs Nitrogen oxide

Stratosphere

15 - 50 km Absorption Absorption

UV - radiation

35

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 36: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Effect Increase in the pH-value of precipitation due to the wash-out of acidifiying gases

eg Sulphur dioxide (SO2) and Nitrogen oxides (NOx)

Reference Substance Sulphur dioxide (SO2)

Reference Unit kg SO2-Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Acidification Potential (AP)

SO 2

NO X

H 2 SO 4 4 HNO 3

36

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 37: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Effect Excessive nutient input into water and land from substances such as

phosphorus und nitrogen from agriculture combustion processes and effluents

Reference Substance Phosphate (PO4-)

Reference Unit kg PO4- Equivalent

Source CML (Heijungs Centrum voor Milieukunde Leiden) 1992

Life Cycle Impact Assessment

Eutrophication Potential (EP)

Waste water

Air pollution

Fertilisation

PO 4 -3

NO 3 -

NH 4 +

NO X N 2 O

NH 3

37

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 38: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Hydrocarbons Nitrogen Oxides

Dry and warm climate

Hydrocarbons

Nitrogen Oxides

Ozone

Effect Formation of low level ozone by sunlight instigating the photochemical reaction

of nitrogen oxides with hyrocarbons and volatile organic compounds (VOC)

Reference Substance Ethylene (C2H4)

Reference Unit kg C2H4 -Equivalent

Source Udo de Haes et al 1999

38

Life Cycle Impact Assessment Photochemical Ozone Creation Potential (POCP) - Summer smog

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 39: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Effect Continuous toxicological impact on humans

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment

Human Toxicity Potential (HTP)

Heavy metals

Halogenorganic

compounds

PCB DCB

PAH

Air

Food

Products

39

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 40: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Effect Continuous toxicological impact on water and soils

(arbitrary estimation)

Reference Substance 14-Di-chloro-benzene (DCB C6H4Cl2)

Reference Unit kg DCB - Equivalent

Source CML (Centrum voor Milieukunde Leiden) RIVM (National

Institute of Public Health and Environmental Protection)

Life Cycle Impact Assessment Aquatic (AETP) and Terrestrial (TETP) = Ecotoxicity Potential (ETP)

(Terrestrial Ecosystem)

Biosphere

Heavy metals

Halogenorganic

compounds PCB

DCB

PAH

Biosphere

(Aquatic ecosystem)

40

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 41: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Agenda

1 PE International Overview

1 Profile Products and Services

2 Introduction to Life Cycle Assessment

Methodology and Framework

3 Applications of LCA and Business Value

1 Success Stories and Case Studies

4 Operationalization of LCA using GaBi

Software

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 42: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Building business value long term B

usin

ess V

alu

e

Overview

Orientation

Long-term company

success

Screening

Material Comparison

Maturity of LCA usage

Rapid Prototyping (Generic LCA)

Process amp Resource Efficiency

Eco-design amp sustainable product Innovation

Verifiable BOM BOP amp Compliance

Product Communication amp Verification Continuous operational

optimization

Sustainable Product Portfolio Management

Value Chain optimization

42

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 43: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

43 11112013

Drivers for applying Life Cycle Thinking in industry are

Which reasons

exist

Regulations amp directives Integrate Product Policy (IPP)

Directive on end-of-life vehicle

WEEE and RoHS

Green purchasing program

Customer requests Down stream clients

Value chain

engagement Material stewardship

ldquoWhat ifrdquo scenarios

Communication and

reputation building SocietyNGOs

Authorities

Green funds

Research and academia

Life Cycle Thinking and Product Sustainability Introduction and overview

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 44: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Business Benefit

Source httpavnirorgdocumentationcongres_avnirdiaposplacvmoteurUnilever_Taylorpdf

Life Cycle Assessment Value Chain Analysis

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 45: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

45

Business Benefit

Business value

bull Understand and improve productsrsquo

environmental footprints

bull EPDs for all its carpet products

globally for verified communication

and reporting

bull Product optimization and innovation

bull Risk Management in the supply chain

Solution

bull Use of GaBi software in-house to track

and improve its productsrsquo life cycle

performance

bull Reduce Recycle Innovative yarn

raquoOur use of LCA with GaBi has evolved to a proactive

assessment of alternatives during the development process

making it a critical tool in helping us achieve our Mission

Zeroreg goalslaquo

Connie Hensler Director Corporate LCA Programs

Interface Inc Source Ramon Arratia

Interface A case of full product responsibility

Life Cycle Assessment Hotspot Identification

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 46: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

LCA of furniture Green Product development

46 Source Ashwini Deodeshmukh Godrej Interio PE Workshop April 2013

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 47: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

47

Solution

bull LCA of packaging

bull Scenario analysis to optimize

packaging design

Sustainability performance

50 less primary energy

60 less plastic

75 fewer CO2 emissions from

transportation

Business advantage

Cost reduction of packaging

across the entire life cycle

Brand enhancement

in container manufacture only compared

to the rigid gallon jug

Packaging Innovation

bdquoLCA gives us a competitive advantage because it gives

us more insight into how to reduce our productsrsquo

footprints find efficiencies and validate and explain those

benefits to customers and consumersrdquo

Chris McGrath vice president for sustainability at Kraft Foods1

Source September 2012 MIT Sloan Management Review

Image Kraft Foods

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 48: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Material Comparison Daimler Case Study

48

Comparison of concepts for the C-class front-module

bull Material options steel aluminum-steel plastic-steel

bull In terms of primary energy demand the steel version the favorable one followed by

the aluminum-steel option

bull In terms of weight the aluminum-steel version is best

Source Environmental Certificate Mercedes-Benz C-Class 11112013

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 49: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Life Cycle Assessment PUMA- Shoe Packaging

bull 1 million litres of water saved

bull During transport 500000 litres of diesel is saved

bull If replacement of traditional shopping bags then save up to 275 tons of plastic

Septem

ber

2007

49

bull ~8500 tons less paper will be

consumed

bull 20 million Megajoules of electricity

saved

bull 1 million litres less of fuel oil use

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 50: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Comparative LCA Sustainable Packaging

11112013 51

Impact Category Credit Energy

Disposal and

Recycling

Downstream

Transport

Primary

Packaging

Secondary

Packaging

Upstream

Transport

Container Glass -11 7 4 100 -2 2

PET 0 19 2 82 -4 1

Beverage Carton -12 134 8 -16 -15 1

Al Can 0 2 1 93 3 0

Source httpwwwindialcacompdfsILCM-2012-Session-6-Vinay-Saranpdf

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 51: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

Environmental Impact of Building Present and Future Scenario

bull Several methods and techniques

being adopted to reduce

environmental impact during the

use phase of the building

bull However impact due to materials

and construction will become

significant when operational

impact has been reduced

bull Cost of resources will increase

further creating burden on the

construction phase

Materials Operation End-of-life

Materials Operation End-of-life

GW

P t C

O2 e

q

Year 2020

Year 2010

GW

P t C

O2 e

q

0

25

50

0

25

50

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example

Page 52: Realize the potential of sustainable business -  · PDF fileRealize the potential of sustainable business ... sustainabilty performance: ... processing, product use, disposal,

53

Business Benefit

Image Tata Steel

Business value

bull Marketing tool for product

differentiation and to support

customers with data on the

sustainability of steel

bull Decision making in product

development

bull Identification of hot spots in the steel

value chain to effectively reduce

impacts and resource consumption

Solution

bull Use LCA Software to build product

models covering environmental impacts

bull Interactive reports for EPD creation

raquoLife Cycle Assessment helps us to fully understand

the benefits across the life cycle and assists us in

communicating these to our stakeholderslaquo

Allan Griffin Knowledge Group Leader Sustainability Tata Steel

Development of EPD Tata Steel Example