Tools and Strategies

for Sustainable Consumption and Production

Outline

• Overall strategies• Concepts• Tools

- analytical- procedural- communication

• Policies and Instruments• What now?

Goal: Sustainable Development- the three pillars

Sustainability

Social

Environment Economy

Policy principles

• Transparency• Precaution• Continuous improvement• Corporate social responsibility (CSR)• Pollution Prevention• Life cycle thinking/ Extended Producer

Responsibility (EPR)

Pollution Prevention• Avoiding the creation of pollutants, before they are

emitted through the stack or in a rubbish bin.

• Better prevent than cure.

• Related to other terms such as:

- waste reduction and minimasation,

- reduction at the source, etc.

• Developed before the overall goal of Sustainable

Development.

Life Cycle Thinking/ EPRLife cycle thinking provides a holistic framework taking the entire system of a product, process or service into account, enabling us to make realistic choices for the longer term taking multiple factors into account. – Every actor in the life cycle has a role

to play and a responsibility to cope with (EPR)

Recy-cling

Refining

Manufac-turing

Exploration

Consumption/Use

Extraction

Return to theenvironment

Re-Use

Society’s Needfor Products and

Services

Obsolescence

Overall Strategies

• Dematerialization• Life Cycle Management• Product Service Systems• Investment and insurance• Reporting• Education and training

Dematerialization

• Addressing needs and functionality rather than the product alone

• Tracking throughput of materials and energy in industrial and consumption processes

• Major increase in resource productivity

Life Cycle Management

Life Cycle Management (LCM) is an integrated concept for managing the total life cycle of goods and services towards more sustainable production and consumption.

– uses various procedural and analytical tools taken from the Product Sustainability Toolbox

– different applications and integrates economic, social and environmental aspects into an institutional context.

Product Service Systems

Product Service Systems (PSS): strategy to develop a marketable mix of products and services that are jointly capable of fulfilling a client's need - with less environmental impact.

- a need rather than a product- win-win solutions - de-coupling economic growth and

environmental degradation.

Product Service Systems II: Definition

“A Product-Service System can be defined as the result of an innovation strategy, shifting the business focus from designing and selling physical products only, to selling a system of products and services which are jointly capable of fulfilling specific client demands.”

UNEP (2002)

Product Service Systems III:Three main approaches

• Services providing added value to the product

life cycle

• Services providing “final results” for customers

• Services providing “enabling platforms” for

customers

Concepts

• Waste hierarchy • Eco-efficiency• Green Chemistry• Industrial Ecology• Polluter pays

1. Prevention or reduction at the source

2. Recycling

3. Treatment

4. Landfill or other form of emission into the

environment (as latest measure and in the

most safe way possible).

Waste hierarchy

Eco-efficiency• Reachable by putting in the market place highly

competitive products and services that

- fulfil the human needs and

- bring quality of life• And at the same time

- reducing progressively their environmental impacts and their resource consumption over the life cycle

- contained within the capacity of the eco-system.

• Reduce the material intensity of goods and services

• Reduce the energy intensity of goods and services• Reduce the dispersion of toxic substances• Improve the recyclability of materials• Maximize the sustainable use of renewable

resources.• Expand the durability of materials• Increase the use intensity of good and services

Success factors for eco-efficiency

Green Chemistry• Use of Chemistry for pollution prevention.

• Designing chemical substances that respect the

environment.

• At the same time making that the production

processes are designed in the same way.

• This includes the reduction or abundance of using

hazardous materials.

Industrial Ecology• Approach to industrial system similar as to

natural systems• Network of industrial systems that cooperate

reusing residual materials and energy in thesame network

• Systematic analysis of the material and energy flows in the industrial systems

• Minimization of the generation of waste and environmental impacts

Polluters pays

            

Emisiones(toneladas/ año)

W

Costes marginales de reducción

Daños marginales

Ptas.

Eu Ee Ed

a b

EEee: Efficient : Efficient

emission is the emission is the point when the point when the marginal marginal damage is equal damage is equal to the marginal to the marginal abatement cost.abatement cost.

Types of Environmental Costs

Coste completo

Preciode venta

al cliente

Depósito

Producción

Extracción

Distribución

Uso

Mantenimiento

Costesde propiedad

después decompra

Costesdirectos

del fabricante

Costesindirectos

del fabricante

Costesa la

sociedad

Contaminación

así comoabuso yescasez

de recursos

Pocavisibilidad

Muchavisibilidad

Muchavisibilidad

Pocavisibilidad

Muy pocavisibilidad

Tools

• Business perspective• Analytical tools• Procedural tools• Communication tools• Toolbox

Business Goals

Companies can act in two very different ways to Society´s demand for sustainable development:

1. Reactive: Fulfilling existing laws, directives and perhaps standards

2. Proactive: Go beyond existing regulation to become leader and use sustainability aspects as business opportunities

Companies’ Potential Areas of Improvement

Processes: Eco-efficiency, Total Quality Management, CPA, EnTA, environmental risk assessment.

Products/ Services: Dematerialization, LCA, PSS, Eco-design, Function Based Approach.

Consumer communication: Consumer opportunities, Advertising and Marketing, Eco-labels.

Systems: Life Cycle Management, Material Flow Accounting, Environmental Management Systems, Multi-stakeholder dialogues, supply chain management.

Analytical tools

• Environmental Audit Check List• Life Cycle Assessment• Environmental Risk Assessment• Industrial Accident Risk Evaluation• Material Flow Accounting/ Substance Flow Analysis• Cost Effectiveness Analysis• Cost Benefit Analysis• Impact Pathway Analysis• Input-Output Analysis

• Qualitative tool that serves as a guide for the orientation of the environmental management of a company.

• Use for concrete application and specific development for each company/ sector

• Consideration of various aspects such as recyclability minimization of dangerous substances, etc.

Environmental Audit Check List

Life Cycle Assessment

Life Cycle Assessment (LCA) is a tool for the systematic evaluation of the environmental aspects of a product or service system through all stages of its life cycle.

– provides an adequate instrument for environmental decision support.

– reliable LCA performance is crucial to achieve a life-cycle economy.

– The International Organisation for Standardisation (ISO), has standardised this framework within the series ISO 14040 on LCA.

According to ISO 14040:According to ISO 14040:

Goal and scopedefinition

(ISO 14041)

InventoryAnalysis

(ISO 14041)

ImpactAssessment(ISO 14042)

ApplicationInterpretation(ISO 14043)

Life Cycle Assessment II: Structure

Acquisition ofraw material

Production

Use/ reuse/ maintenance

RecyclingWaste Management

Rawmaterial

Energy

AtmosphericEmissions

WasteWaters

SolidWastes

OtherWastes

Co-products

INPUT OUTPUT

Boundaries of the systemSystem Boundaries

Recycling/ Waste Management

Life Cycle Assessment III:Inventory Analysis

Acquisition ofraw material

Production

Use/ reuse/ maintenance

Life Cycle Assessment IV:Impact Assessment

Classification and Characterisation

Normalisationand Weighting

CO2

CH4

CFC

SO2

NOx

NH4

...

...

...

Climate Change

Acidification

...

EnvironmentalIndex

One practical example (detergents)

Higher materials and transport efficiency by compact detergents• After LCA they foster compact detergents• Savings of 30 % of raw materials • Savings of 75 % of transportation space• Savings of 40 % of energy used• 815,000 tones of raw material per year• 40,700 tours of trucks per year

• 53 million MJ of energy per year

A second practical example (TVs)

A basic LCA shows that the major part of a TV’s environmental impact is caused by energy consumption in the use phase.• Remarkably, up to 60% of the total energy consumed is used when the TV is in the stand-by-mode.• Introduction of an alternative, non-energy consuming stand-by system can result in important environmental and economic benefits (more than 25%).• Other options for improvement are the use of recyclable materials for printed circuit boards as well as glass and plastics parts.

A third practical example (natural gas)

In the transport of natural gas through pipelines, small leaks occur at pumping stations.• It is possible to recompress this methane (CH4), but this requires energy, which is delivered by burning methane• Resulting in an emission of 14kg CO2 for 10kg of CH4.

• Global Warming Potential (GWP) of CH4 is 25 times that of CO2 per unit of weight.• Without recompression, the emission of 10kg CH4 leads to a GWP of 250kg CO2 equivalents

• With recompression, there is only an emission of 14kg CO2 equivalents

Concept of Indicators:Midpoints versus Endpoints

Life cycle inventory results

Inventory results assignedto impact categories

Category Indicator

ImpactCategory

Environmentalrelevance

Model

Category Endpoint(s)

kg NO2, Pb, SO2 etc.

Forest, vegetation etc.

Acidification

NO2, SO2 etc.

EXAMPLE

Proton Release (H+)

Timber loss

MidpointMidpoint

EndpointEndpoint

StepsStepsUnitUnit ExampleExample

Pollutant emissionsPollutant emissions

ExposureExposure

Physical impact on receptorPhysical impact on receptor(depending on its regional density)(depending on its regional density)

Socio-economic damageSocio-economic damageevaluation for aggregationevaluation for aggregation

Particle MatterParticle Matter

Change inChange in

concentrationconcentration

Increase of asthmaIncrease of asthmain populationin population

Loss in human welfareLoss in human welfare

kgkg

g/m³g/m³

g/dg/dayay

N° ofN° ofCasesCases

DALYs or EuroDALYs or Euro

Deposition inDeposition inrespiratory systemrespiratory system

&&

FateFate

Environmental Damage Estimations

Need for spatial differentiationin different impact categories

global

local

Climate Change Stratospheric ozone depletion

Extraction of abiotic resourses Extraction of biotic resourses

Acidification Nutrification

Human -toxicity Eco-toxicity

Photo-oxidant formation Land use

Predicted ExposureConcentration

Prediction of emission rate

EXPOSURE ASSESSMENT

Extrapolation

Dose-response tests

HAZARD IDENTIFICATION

- Risk Characterisation- Uncertainty Analysis

- Risk Characterisation- Uncertainty Analysis

EFFECT ASSESSMENT

Exposure prediction

Predicted No-Effect Concentration

Acceptable DailyIntake

Predicted Exposure Dose

Environmental Risk Assessment (ERA)

EnvironmentEnvironment Human Health

Determination of the (environmental) risk due to the installation or the operation of industrial processes

Undesired events are accidents that cause (environmental) damage in various means

Use of ‘event’ and ‘fault’ trees

Industrial Accident Risk Evaluation

Material Flow Accounting (MFA)/Substance Flow Analysis (SFA)

Material Flow Accounting (MFA) refers to accounting in physical units (usually in tons); the life cycle of materials in a given location (i.e., substances, raw materials, products, wastes). Examples of flow accountings are:

• Eco-toxic substances that may cause environmental problems

• Nutrients such as nitrogen and phosphates due to their critical influence over eutrophication

• Aluminium, the economic use, recycling and reuse of which are to be improved

• Consideration of abatement costs

• Comparison of this cost with the abatement resultsthat are obtained with a certain amount of money

• When investing this money in environmental improvement the option is chosen that shows the best effectiveness

Cost Effectiveness Analysis

• Economic assessment tool from social or societal point of view in contrast to the company view

• Consideration of in particular the external effects so that accounting for as external costs

• The conversion of the damages in costs based generally on the theory of well being where individuals confronted with the effects judge its relevance (Contingent Valuation).

Cost Benefit Analysis (CBA)

Impact AssessmentImpact Assessment ValuationValuation

Activity and EmissionsActivity and Emissions

Fate and TransportFate and Transport

Receptor Receptor RResponseesponseand and PPhysical hysical IImpactmpact

Change in UtilityChange in Utilityand Welfare Lossand Welfare Loss

MonetiMonetissationationand Cost and Cost AAccountingccountingDeveloped in the ExternE Project

Impact Pathway Analysis (IPA)

Health Effect Analysis Emission

Fate

Exposure

Risk due to accumulation

Physical impact

Exposure-Response function

Potential cancer risk factor

Dose- Response function

Correlation

Bioassays/ Animal tests

Empirical studies

Prevision

Prevision

Toxicologicalapproach

Epidemiologicalapproach

• Developed as part of the national statistics accounts

• Indication of all the flows of goods and services in an economy as principal application

• Illustrating the connection between producers and consumers, as well as the interrelationship of the various industry sectors

• Frequently applied to environmental analysis

Impact Output Analysis (IO-LCA)

Example: Use of IO-LCA for consumption patterns

Need area or functionShelterFoodMobilityPersonal careLeisureClothingEducationTotal

Direct and indirect energy use per person*39%18%18%9%8%6%2%100%

*Average for Groningen/ the Netherlands as reported by Tukker (2003)

Procedural tools

• Environmental Impact Assessment• Environmental Management Systems• Environmental Audit• Eco-design • Supply chain management

Environmental Impact Assessment (EIA)

7. Valoraciónde losimpactos

9. Plan devigilanciaambiental

11. Informe finaly declaraciónde impacto

10. Participaciónpublica

8. Medidascorrectoras

Informacióngeográfica y

temática

3. Análisisdelproyecto

2. Definicióndel entorno

1. Previsiónde efectos

5. Identificaciónde acciones

6. Identificaciónde impactos(Matriz deimportancia)

4. Identificaciónde factores

EVALUACION

CUALITATIVA SIMPLIFICADACUANTITATIVA

Environmental Management Systems• An environmental management system (EMS) is a

means of ensuring effective implementation of an EM plan or procedures in compliance with environmental policy objectives.

• A key feature on any effective EMS is the preparation of documented system procedures and to ensure effective communication and continuity of implementation.

• There are certification systems for EMS as the ISO 14001 and EC EMAS scheme.

• Ongoing development towards product-orientated management systems (POEMS).

Eco-design/ Design for Environment (DfE)

Looks at the relation between a product and the environment. Some common propositions include:

• captures the environmental impacts of the whole production-consumption chain;

• 60% to 80% of life-cycle impacts from products are determined at the design stage;

• DfE is to develop generic, company and product independent standards (under ISO TC207)

• way to engage business interest and action because it focuses on the products' market vulnerability.

To introduce the environmental parameterinto the design of products, processes and/or activities

in an effective manner

The environmental parameter becomes a business opportunity!

Eco-design II: Key message

Eco-design III: Changes in the product development procedure

1. Adjustment of the requirements (specifications) of the product, process or activity

2. Realisation of corresponding LCA or other

analysis tools to identify weak points

3. Development of Eco-design guidebook

Category 1: Highly recommended to carry out in short term.Category 2: Can be incorporated: the more the better.Category 3: Need further improvements.Category 4: Will be sorted out.

Technical and Economic feasibility

EnvironmentalAdvantages

+

+-

-

Category 3:Environmental benefitsTechnical and economic problems

Category 4:Few environmental improvementsTechnical and economic problems

Category 2:Few environmental improvementsTechnical and economic feasibility

Category 1:Environmental benefitsTechnical and economic feasibility

Eco-design IV: Prioritisation Matrix

Eco-design V: Example 1 - Humidity catchers

Eco-design VI: Example 2– Clothes from recycled material

Supply chain management

• Companies as customers can influence their suppliers to respect certain sustainability requirements with regard to the product they procure

• Greening the supply chain• CSR questionnaires with audits and training

• According to ISO 14010, a systematic process of verification and objective evaluation to define if the activities, facts, conditions and systems in place for environmental management are in line with the audit criteria and the communication of the result of this process to the client

• Required after the installation of an environmental management system set-up or filling in a supplier questionnaire

• Verification that the activities and results of an organisation are carried out according to defined standards for the environment, labour conditions and other sustainability issues

Sustainability Audit

Communication tools

• Consumer Communication and Marketing• Eco-labelling• Multi-stakeholder dialogue

Consumer Communication

Opportunities for the consumer to make a change:• Conscious purchasing• Consumer´s power (voting with the pocket, activism)• Waste separation, water, energy, etc.• Buy eco-efficient products (saving)• Quality of life versus consumerism• Sustainable life stylesCrucial role of retail sector

“I use Body Shop products which play a role in supporting third world countries and their jobs.”

Mass Media & Marketing are key

Consumer Communication II: Advertising and Marketing

Eco-labellingType I (ISO 14024) - third party certification labels: claims are based on criteria set by a third part. Examples include the EC Eco-Label, Nordic Swan and the German Blue Angel; Type II (ISO 14021) – self certified labels claims are based on specific declarations by manufacturers or retailers. Numerous examples e.g. ‘made from X% recycled material’; Type III (ISO /TR 1425) – Environmental Product Declarations or LCA based labels are claims consist of quantified products information base on life cycle impacts. Single issue labelling schemes such as the private Forest Stewardship Council (FSC) and organic food labels do not fall within any of the categories but are partially converted by ISO 14020 – General Guidelines for Environmental Claims and Declarations.

Eco-labelling II: Examples

Multi-stakeholder dialogue

• Changes of the supply chain need often multi-stakeholder dialogue to allow that several players act together with the same aim.

Example of the electronics industry

Science, Technology Governments

Suppliers

Financial community

ELECTRONICS INDUSTRY

VotersCustomersMembers

Customers UnionsNGO’s

Product Sustainability Toolbox

Data

Tools

Applications

Change

Product Sustainability Toolbox

Applications Material, Process and Product Comparison Investment Decision Support Strategic Planning Marketing, Customer and Regulatory

Compliance Weak Point Analysis Benchmarking

Product Sustainability Toolbox

Tools ERA, LCA, MFA/ SFA Eco-design/ DfE Eco-labelling: Type I, II, III Supply Chain Management Multi-stakeholder dialogue Consumer Communication and more...

Manager decisions and its potential to cause environmental impact

Decisión del managerIm

pac

to A

mb

ien

tal

Tiempo

Límite

Decision-making situations

in very populated and acidification-sensitive areain very populated and acidification-sensitive areanext to the mining sitenext to the mining sitein pure populated & and no acidif.-sensitive areain pure populated & and no acidif.-sensitive areafar away from mining sitefar away from mining site

Two products produced in the same way but in different regionsTwo products produced in the same way but in different regions

• Electricity generated from coal Electricity generated from coal • Combustion of coal as an important part of the life cycleCombustion of coal as an important part of the life cycle

MinimalMinimal total emissions and energy demandtotal emissions and energy demand - - Specific region not consideredSpecific region not considered MinimalMinimal risk for the environmentrisk for the environment - - Extra transport not consideredExtra transport not considered

Which tool to choose? An example

Case Case 11

Case Case 22

Case Case 11

Case Case 22

LCALCA::

ERAERA::

Policies and instruments

• Integrated Product Policy• Sustainable Procurement• Policy instruments to encourage SCP

Traditional life cycle view of policy

Resource Inputs

Use/Consumption

End of life/ disposalProduction

Traditional focus of governments

Traditional focus of governments

Maximise efficiencyMinimise

waste

Integrated Product Policy (IPP)• Life-Cycle Thinking – cumulative environmental impacts - from

the “cradle to the grave”. • Working with the market – setting incentives so that the market

moves in a more sustainable direction by encouraging the supply and demand of greener products.

• Stakeholder Involvement – it aims to encourage all those who come into contact with the product

• Continuous Improvement – improvements can often be made to decrease a product’s environmental impacts

• A Variety of Policy Instruments – the IPP approach requires a number of different instruments because there are such a variety of products and different stakeholders.

Sustainable Procurement Sustainable procurement is the process in which organisations buy supplies or services by taking into account:

– the best value for money considerations such as, price, quality, availability, functionality, etc.;

– environmental aspects ("green procurement": the effects on the environment that the product and/or service has over its whole lifecycle, from cradle to the crave);

– the entire Life Cycle of products;– social aspects: effects on issues such as poverty

eradication, international equity in the distribution of resources, labour conditions, human rights.

Policy instrumentsto encourage SCP

Regulatory: standards, norms, EPR, labelling, (enforcement)

Economic instruments: taxes, subsidies,credits, financial incentives, etc.

Social: awareness raising, education, information, voluntary initiatives

Others: indicators, green accounting...

ISO standardsThe five groups belonging to ISO 14000 are:

ISO 14001,04: Guías para documentar Sistemas de Gestión Ambiental.

ISO 14010,11,12: Guías para realizar Auditorias Ambientales.

ISO 14020, 21,22,23,24: Etiquetado ambiental.

ISO 14031: Evaluación del desempeño ambiental

ISO 14040,41,42,43: Análisis del ciclo de vida.

Government Policy Instruments for Waste Prevention and Management

Economic Tools* Tax on packaging* Economicincentives for cleanerproduction and wasteprevention.

Regulatory Tools* EnvironmentalStandards.* Eco-labelling

VoluntaryApproaches andTechnologicalInnovation* Triple bottom line* Eco-design* De-materialisation* Shift from productsto services.

Economic Tools*Deposit-refundschemes* Taxes ondisposable productsand packaging.

Regulatory tools*Eco-labelling

Social Tools* EnvironmentalEducation* Information ongreen purchasing* Support tovoluntary initiatives.

Economic Tools* Waste fees & taxes* Pays as you throw

Regulatory tools* Extended ProducerResponsibility

* Regulation onwaste collection andrecycling schemes* Provision ofinfrastructure forrecycling

Social Tools* Information onrecycling schemes*. Support tovoluntary initiatives

ProductionPatterns

HouseholdConsumption Patterns

Waste generationand collection

Waste ManagementSystems

Economic Tools* Taxes onlandfilling andincineration.

Regulatory tools* Framework basedon waste hierarchy* Environmentalregulation on wastemanagement* Bans on landfilling* Target for reducinglandfilling andincineration of waste* Targets to increaserecycling rates

Technologyinnovation* Energy recoveryincinerators.* Cleaner technologyfor wastemanagement

Policies and Instruments for SCP II

*Source: OECD, 2002.

What now?

• What does SCP mean in your day to day work?• What is needed to include a life cycle

perspective in current work? • How can you take advantage of existing

(analytical) tools and how much have you thought of addressing the consumer needs?

• Who will you need to work with to achieve your integrated target objectives?

Take away message“Human needs should be met by products and services that are aimed at specific ‘functions’ such as food, shelter and mobility, and that are provided through optimized consumption and production systems that do not exceed the capacity of the ecosystem.”

Life Cycle Initiative Brochure,

UNEP / SETAC, ‘International

Partnership’, 2003.