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1 1 Evaluation of the Three Dimensions of Sustainability with Eco-Efficiency Analysis and SEEBALANCE - Case Studies from Innovation to Business Applications Dr. P. Saling, BASF SE Head of Eco-Efficiency Analysis / SEEBALANCE 2 Eco-Efficiency Analysis, SEEBALANCE ® BASF, 2009 Construction materials Using innovative BASF products saves energy and cuts down on construction materials. Fuel additives Save petrol with BASF. Fuel additives reduce fuel consumption and reduce harmful effects on the environment. Sports surfaces Conica sports surfaces from BASF support the quest for light athletics records. Superabsorbent products Nappies are becoming ever thinner. Superabsorbent central layers are highly effective. Chemistry in everyday life

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1

Evaluation of the Three Dimensions of

Sustainability with Eco-Efficiency

Analysis and SEEBALANCE - Case

Studies from Innovation to Business

Applications

Dr. P. Saling, BASF SE

Head of

Eco-Efficiency Analysis / SEEBALANCE

2Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Construction

materials

Using innovative

BASF products saves

energy and cuts

down on construction

materials.

Fuel additives

Save petrol with BASF.

Fuel additives reduce

fuel consumption and

reduce harmful effects

on the environment.

Sports surfaces

Conica sports

surfaces from BASF

support the quest

for light athletics

records.

Superabsorbent

products

Nappies are becoming

ever thinner.

Superabsorbent

central layers are

highly effective.

Chemistry in everyday life

2

3Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Public requirements, public opinion,

subjective goals

Sustainability goes beyond it!Green Products

Bioplastics Green principles

Recyclability

7Rs

Environmentally friendly Biodegradability

Compostability

Degradability

Renewablility Biobased

100 % Recycling

No GMO CO2-neutral

4Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

The Three Pillars of Sustainable

Development is the Basis of the

SEEBALANCE

3

5Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Total Life cycle Calculations are the basis

of Eco-Efficiency Analysis and

SEEBALANCE

Production

of

Oil, Gas,

Coal,

Energy

Raw

materials

Production

of

Basic

Materials,

Biomass,

Production

of

Goods,

food,

Functions,

Use

of

Goods,

food,

Functions,

End of

life

Mechan.

Recycling

Incineration

Landfill

Compost

Beginning and end of system boundaries are integrated

6Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Background of Eco-Efficiency and

SEEBALANCE

Comprehensive assessment of products and processes.

Ecology, Economy and Social figures are given equal

weight

Products are analyzed with a „Total Life cycle“-approach

from the angle of the customer.

Different product alternatives for a defined „User benefit“

are assessed.

The final result compares the alternatives with each

other; leads to a ranking of different products or processes

due to their sustainability.

4

7Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Cost Analysis

Addition of all real costs along the life-cycle!

Alt. 2Alt. 1 Alt. 3 Alt. 4

EU

R/N

E

Costs (relative)Costs (absolute)

Normalization

hoch niedrig1.0

● Alt.1 ● Alt.2 ● Alt.3 ● Alt.4

8Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Environmental Assessment

Environmental Burden

low

high

1,0

Resource Consumption

Energy Consumption

Emissions

Tox-Potential

Risk Potential

Land Use

Effect Category Ecological Fingerprint

Aggregation

and weighting

of impact

categories

Calculation of

relative product

position

0,00

0,50

1,00

Energy

Emissions

Toxicity

Risk

Resources

Land Use

● Alt.1 ● Alt.2 ● Alt.3 ● Alt.4

Normalization WeightingAggregation Normalization

5

9Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Eco-Efficiency Portfolio: Example

Bubble size can be used as a third indicator

Customer

Benefit:

Production,

Use and

Recycling of ...

Low Eco-

efficiency

High Eco-

Efficiency

0,3

1,0

1,7

En

vir

on

me

nta

l B

urd

en

(n

orm

.)

0,31,01,7

Costs (norm.)

● Alt.1 3%

● Alt.2 35%

● Alt.3 7%

● Alt.4 55%

Bubble size represents

relative market share in

Europe

10Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Decision making process for

biotechnological and chemical

processes – new compounds for polymers

Vitamin B2 for production of feed

premixes

High eco-efficiency

Low eco-efficiency

-1,5

1,0

3,5

-1,51,03,5

Costs [normalized]

En

vir

on

me

nt

[no

rma

lize

d]

High eco-efficiency

Low eco-efficiency

High eco-efficiency

Low eco-efficiency

High eco-efficiency

Low eco-efficiency

-1,5

1,0

3,5

-1,51,03,5

Costs [normalized]

En

vir

on

me

nt

[no

rma

lize

d]

Chemical

process

Plant extraction

from Paprika

Capsanthin as pigment in feed

premixes

6

11Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Process evaluation and optimization with a life-

cycle based Eco-Efficiency Internet Manager

Example: Fish farming together with customers

Partners: Fish farming industry

and scientific institutes in

Scandinavia

Internet portal for

performance of independent

eco-efficiency analyses

Feed composition can be

selected from 30 ingredients

for various fish species

The eco-efficiency manager

allows customers to optimize

their formulas independently

www.eeaman.com

0,4

1,0

1,6

0,41,01,6

Costs (normalized)

En

vir

on

men

t (n

orm

ali

zed

)

IndustrialStandard 2003

Marine Diet

High Quality,mainly vegetarian

Least Costs (LC),mainly vegetarian

12Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Ionic Liquids compounds:

Synthesis of Lucirin® TPO-L, an UV-photoinitiator for curing

coatings and printing inks

-0,5

1,0

2,5

-0,51,02,5

Costs (normalized)

En

vir

on

me

nt

(no

rma

lize

d) Amine

DEPP

BASILDEPP

High eco-efficiency

Low eco-efficiency

7

13Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Portfolio

0.0

1.0

2.0

0.01.02.0

Costs (normalized)

En

vir

on

men

tal

Imp

act

(no

rmali

zed

)

BASF

Albemarle

India

China

Pharma Chemicals:

Portfolio for Ibuprofen

Customer

Benefit (CB):

Production

of 1kg of

ibuprofen for

use in

200mg

tablets to be

sold in the

North

American

marketplace.

high eco-efficiency

low eco-efficiency

In the Base case

BASF Ibuprofen is

the most eco-

efficient.

14Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

0,0

1,0

2,0012

Costs

So

cia

l E

valu

ati

on

0

0,001

0,002

0,003

0,004

0,005

0,006

0,007

0,008

Alternative 1 Alternative 2

Em

plo

yees/U

B

EmployeesComputerIndustry

EmployeesChemistry

0,00

0,50

1,00Employees

Consumers

Local & National CommunityFuture Generations

International

Community

Alt. 1Alt. 2

1,6

1,00,4

1,0

0,4

1,6

1,0

0,4

Socio-Efficiency-Portfolio

SEEcubeInput data

Social Fingerprint

Introducing of social evaluations:

The SEEBALANCE

8

15Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

SEEBALANCE® Results

of 4-Methoxy-acetophenon together with

Prof. Leitner, RWTH Aachen

User benefit:

Production of

1kg of

4-methoxy-

acetophenonThe Fe(HSO4)3

process is the

most sustainable

alternative

AlCl3 process

zeolite process

Fe(HSO4)3 process

Indiumtriflat

process

2,5

1,0

-0,5

2,5

1,0

-0,5

2,5

1,0

-0,5

Environ

me

nta

l im

pa

ct (n

orm

aliz

ed

)

Soc

ial im

pact

(nor

mal

ized

)

Costs (normalized)

16Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

How does BASF and their customers using

the Eco-efficiency Analysis and

SEEBALANCE?

Strategic Decisions

• Investment decisions

• Technology decisions

• Site decisions

• Evaluate product portfolio

Marketing, Customers

• Demonstration of product advantages

• Improved customer relations

• Product Differentiation

• Better understand competitive

advantages

Research and development

• Quantification of the most

important factors

• Drive sustainable

products and processes

• Drive production/process improvements

Stakeholder and Government

Dialogue

• Communication with authorities

• Demonstration of Sustainability

• Government “approvals”

9

17Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

Conclusions

Sustainability as guiding principle is accepted.

Definition of „user benefit“ shows the needs of goods and

products. Consideration of all possible alternatives is needed,

further concentration on specific questions is possible.

Life Cycle based calculations, using several ecological economical

and social criteria.

No definition of general principles!

Working out a final result, easy to understand for decision-making

processes is needed.

Supporting the results with scenario analysis, uncertainty

evaluation are used for further improvement and development of

products.

18Eco-Efficiency Analysis, SEEBALANCE® BASF, 2009

The competence center of product

safety within BASF- your partner in

questions of: Eco-Efficiency Analysis, LCA

Sustainability, SEEBALANCE

Eco-Efficiency Internet

managing tools

Eco-Efficiency Label

Business Development

REACH

Carbon Footprints

Our Homepage: (http://www.oekoeffizienzanalyse.de/)

Office for Europe, world: BASF SE, Ludwigshafen, Germany

Office for NAFTA: BASF Corporation, Florham Park, New Jersey, USA;

BASF Corporation, Wyandotte, Michigan, USA;

Office South America: Espaco Eco foundation and BASF S.A., Sao Bernardo, SP.,

Brazil

Office for Asia: BASF China Ltd., Shanghai