Tools and Strategies

1. Tools and Strategies for Sustainable Consumption and Production

2. Outline • Overall strategies • Concepts • Tools - analytical - procedural - communication • Policies and Instruments • What now?

3. Goal: Sustainable Development- the three pillars Environment Economy Sustainability Social

4. Policy principles • Transparency • Precaution • Continuous improvement • Corporate social responsibility (CSR) • Pollution Prevention • Life cycle thinking/ Extended Producer Responsibility (EPR)

5. 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.

6. Life Cycle Thinking/ EPR Life 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)

7. Overall Strategies • Dematerialization • Life Cycle Management • Product Service Systems • Investment and insurance • Reporting • Education and training

8. 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

9. 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.

10. 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 growthand environmental degradation.

11. 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)

12. 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

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

14. Waste hierarchy • Prevention or reduction at the source • Recycling • Treatment • Landfill or other form of emission into the environment (as latest measure and in themost safe way possible).

15. 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.

16. Success factors for eco-efficiency • 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

17. 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.

18. Industrial Ecology • Approach to industrial system similar as tonatural 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

19. Ptas. Costes marginales de reducción Daños marginales W a b Emisiones (toneladas/ año) Eu Ee Ed Polluters pays Ee: Efficient emission is the point when the marginal damage is equal to the marginal abatement cost.

20. Types of Environmental Costs

21. Tools • Business perspective • Analytical tools • Procedural tools • Communication tools • Toolbox

22. Business Goals Companies can act in two very different ways to Society´s demand for sustainable development: • Reactive: Fulfilling existing laws, directives and perhaps standards • Proactive: Go beyond existing regulation to become leader and use sustainability aspects as business opportunities

23. 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.

24. 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

25. Environmental Audit Check List • 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.

26. 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.

27. Application Life Cycle Assessment II: Structure According to ISO 14040:

28. Life Cycle Assessment III:Inventory Analysis Acquisition ofraw material Production Use/ reuse/ maintenance Recycling/ Waste Management

29. Life Cycle Assessment IV:Impact Assessment

30. 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

31. 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.

32. 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

33. Concept of Indicators:Midpoints versus Endpoints Midpoint Proton Release (H+) Endpoint Timber loss

34. Unit Steps Example Pollutant emissions Particle Matter kg Change in Fate g/m³ concentration & Deposition in Exposure g/day respiratory system N° of Physical impact on receptor(depending on its regional density) Increase of asthmain population Cases Socio-economic damageevaluation for aggregation DALYs or Euro Loss in human welfare Environmental Damage Estimations

35. Need for spatial differentiationin different impact categories

36. Environmental Risk Assessment (ERA) HAZARD IDENTIFICATION EXPOSURE ASSESSMENT EFFECT ASSESSMENT Prediction of emission rate Dose-response tests Exposure prediction Extrapolation Environment Environment Human Health Acceptable DailyIntake Predicted Exposure Dose Predicted No-Effect Concentration Predicted ExposureConcentration - Risk Characterisation - Uncertainty Analysis

37. Industrial Accident Risk Evaluation • 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

38. 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

39. Cost Effectiveness Analysis • 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

40. Cost Benefit Analysis (CBA) • 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).

41. Impact Pathway Analysis (IPA) Valuation Impact Assessment Activity and Emissions Fate and Transport Receptor Responseand Physical Impact Change in Utilityand Welfare Loss Monetisationand Cost Accounting Developed in the ExternE Project

42. Health Effect Analysis Epidemiologicalapproach Toxicologicalapproach

43. Impact Output Analysis (IO-LCA) • 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

44. Need area or function Shelter Food Mobility Personal care Leisure Clothing Education Total Direct and indirect energy use per person* 39% 18% 18% 9% 8% 6% 2% 100% Example: Use of IO-LCA for consumption patterns *Average for Groningen/ the Netherlands as reported by Tukker (2003)

45. Procedural tools • Environmental Impact Assessment • Environmental Management Systems • Environmental Audit • Eco-design • Supply chain management

46. Environmental Impact Assessment (EIA)

47. Environmental Management Systems • An environmental management system (EMS) is a means of ensuring effectiveimplementation of an EM plan or procedures in compliancewith environmental policy objectives. • A key feature on any effectiveEMS is the preparation of documented system procedures and to ensureeffective communication and continuity of implementation. • There are certificationsystems for EMS as the ISO 14001 and EC EMAS scheme. • Ongoing development towards product-orientated management systems (POEMS).

48. 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.

49. Eco-design II: Key message To introduce the environmental parameterinto the design of products, processes and/or activitiesin an effective manner The environmental parameter becomes a business opportunity!

50. Eco-design III: Changes in the product development procedure • Adjustment of the requirements (specifications) of the product, process or activity • Realisation of corresponding LCA or other analysis tools to identify weak points • Development of Eco-design guidebook