green products - s.roy
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Green Products
Green Products(Life Cycle Thinking to Green Procurements)
Shantanu [email protected]
How much Green is Green
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Green Products
How to define ‘Green’?
• Many definitions• Also self‐defined by producers• Some use ecolabels
Do No Harm
Compliance
Leanness in use of resources
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How much ‘Green’ is ‘Green’?
• Products and services– That are environmentally friendly
• Environmentally friendly relative to those available– Have lesser / reduced impact on human health and
environment than other product that perform similar function
• Behind every product there’s a ‘past’ and a ‘future’– The life cycle
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Green Products
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Leather productionChromium compounds
Iron/Steel ProductionSlags
Plastic productionPlastic wastes
AluminumProductionSlags
Rubber productionRubber wastes
PaintingsPaint sludges& solvents
Tooling & machiningCutting oils and emulsions
Metal finishingAcid wastes andheavy metals
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Green Products
What is Green Products/Services?
• Products/Services* that– Are More environmentally friendly relative to other products in the
same category .
– Have lesser / reduced impact on human health and environment than other product that perform similar function
7*United Nations Environment Programme
Green products / services would typically display all or some of the following characteristics; • conservation of energy and water• minimized generation of waste and releases of pollutants or
emissions• be recyclable or themselves be made from recycled materials; and • use energy from renewable sources.
What is Green Products/Services?
Any product which is made, used or disposed of in a way that significantly reduces the harm it would otherwise cause to the environment,
can be categorized as Green product
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Green Products
The way we design, make and use things right now has a measureable effect on the earth
Means a greater effect on the future…
The choices we make today affect how we live tomorrow
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And that’s why we need green products!!!^er
LIFE CYCLE ANALYSIS AND COSTINGGreen Products
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Green Products
Understanding Consumption & Production
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Use of natural resources
Polluted environment
Consumers / people
Industry
Products
Recycled waste products
Change of consumption
patterns
Use of natural resourcesUse of natural resources
Quality of lifeQuality of life Economic growthEconomic growth
Change of production techniques
Wuppertal Institute
Need of the Hour: Decoupling of Economic Growth from Environmental Degradation
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Green Products
The need in the Product context
• Efficient management of resources at all stages of value chain
• Less use of toxics in production• Better product performance during
use – lower resource consumption, longer life
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Life Cycle of a product
Use & maintenance
Recycling & Disposal
Packaging & Distribution
Design & Manufacturing
Extraction & Processing
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Green Products
Life Cycle thinking
• Shift in the conventional thinking!• Greening the supply chain• Life Cycle – from raw material
extraction to final disposal and/or recycling!
• Extended Producer’s Responsibility
• Company creates impacts not only through its own processes but along the life cycle of a product, and taking action
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Life Cycle thinking• Includes environmental,
social, and economic impact of product
• Aims to reduce product‘s resource use and emissions
• Aims to improve product‘s socio‐economic performance
Learning about the environmental performance of
products and services
Minimizing production and regulatory costs
Minimizing environmental and human health
damage
Understanding trade‐offs between
multiple impact categories and product phases
Supporting equitable economic
distribution and profitable operations
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Green Products
LCA – Key elements
• LCA is a method that considers energy and raw material consumption, different types of emissions and other important factors related to a specific product’s entire life cycle from an environmental point of view.
• Identifying and quantifying env. loads involved – resources used and emissions/wastes released
Calculating the load
Calculating the load
• Assessing and evaluating potential env. impacts of these loads
Evaluating the impact
Evaluating the impact
• Assessing opportunities during decision making process to bring about env improvements
Assessing opportunities for Environmental Improvement
Assessing opportunities for Environmental Improvement
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Life Cycle of Jeans
Source:
Processing at the spinning mill
in Country B
Jeans manufacturing in Country C
Marketing and Sales in Country D
Cultivation of Cottonin Country A
Use by the Consumers Waste Collection
Dumping orRecycling
Collection by the second‐hand shop
for re‐use
Transport Transport
Transport
Transport
NATURE
Source: UNEP, Wuppertal Institute
Green Products
LCA is complex!!!
• Complex supply chain
• Lack of customised data bases
• Cost of LCA of a product
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LIFE CYCLE COSTING
Green Products
Life Cycle Costing (LCC)
• Decision making tool• Instrumental to Life Cycle Management is Life Cycle Costing• The assessment of “cost” should consider all costs throughout
the life‐cycle ‐ purchase price, usage costs (energy/water consumption, maintenance), and disposal costs
"... a technique which enables comparative cost assessments to be made over a specified period of time, taking into account all relevant economic factors both in terms of initial capital costs and future operational costs"
(BS 15686‐1, 2000; p.28)
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Use of LCC in decision makingSelecting the alternative which optimizes both environmental and economic considerations
Source: The Econo‐environmental Return; Gontran Bage, Rejean Sampson
Green Products
Elements of LCC
Research & development
cost
Manufacturing cost
Packaging & distribution
cost
Operation and maintenance support cost
Recycling & Disposal cost
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Green product, if truly green, must cost less, if accounted in a life cycle perspective.
Green Products
Small Market Size
Reasons why prices are high?
Economy with less incentives for manufacturers/producers
Production costs high. Produced as ‘boutique items’(small quantities); material conversion efficiency high
See no one wants my product. I invested so much!! Manufacturer
Use of frontier technologies yet to be commercialized
Compliance across supply chains
Cost of recycling more due to disproportionate costs of reverse logistics and often due to perverse pricing of resources
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Life cycle costs and benefits are unevenly shared and are often hidden
Greener alternatives use less toxic materials; lower costs during use and disposal
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Green Products
GREEN PROCUREMENTGreen Products
Principles of Green Purchasing
1. Consider whether a product is needed before purchasing it or not.
2. Purchase a product considering the various environmental impacts over its life cycle ‐ from extraction of raw materials to disposal.
3. Select suppliers who make a conscious efforts to care for the environment.
4. Collect environmental information on products and suppliers.
5. Support Greening of your supply chain
Environmental issues to consider• Low energy• Longer life• Locally produced• Low pollution• Recycled contents• Packaging• …
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Green Products
Identifying Green Products
• Eco‐labels
• Self declared ‘greenness’
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Eco‐labels
• Criteria span across the life cycle
• Multi attribute
• Set criteria for product categories
• Criteria define what makes a greener product
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Green Products
Sometimes, greenness is defined upon a single criterion
• Single‐attribute labels
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Self declared ‘greenness’
• Not awarded by an independent authority
• Developed internally by companies
• Take the form of a declaration, a logo, a commercial, etc.
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Green Products
Some key requirements as per GPNI
• Compliance to environmental regulations• Resource conservation & efficiency• Exclusions & preferences based on LCA• Environmental protection & conservation of
biodiversity• Reporting & responsible disclosure• Biodegradability & recyclability• Implementing EMS• Social Inclusions
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We don’t have all the answers…Just as we all share this world, we share the journey through it. Working together, we can leave it a better place.
Each of us brings our own shade of green to the effort.Together, we can make it beautiful.
Thank you