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The Socio-Eco-Efficiency Analysis: SEEbalance ®. SEEbalance ®. high socio -eco-efficiency. Reduction of raw material and energy consumption. Environmental impact. Social impact. low number of working accidents. Costs. The Four Strategic BASF Guidelines for Long-term Success.

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the socio eco efficiency analysis seebalance

The Socio-Eco-Efficiency Analysis: SEEbalance®

SEEbalance®

high socio

-eco-efficiency

Reduction of raw material and energy consumption

Environmental impact

Social impact

low number of working accidents

Costs

the four strategic basf guidelines for long term success
The Four Strategic BASF Guidelines for Long-term Success

Help ourcustomers to bemore successful

Earn apremium on ourcost of capital

Ensuresustainabledevelop-ment

Formthe best teamin the industry

the three pillars of sustainable development
The Three Pillars of Sustainable Development

Sustainable Development

ecology

society

economy

SEEbalance®-Analysis

Eco-EfficiencyAnalysis

development of seebalance

Universität Karlsruhe (TH)

Institut für Geographie

und Geoökologie

Development of SEEbalance®

From the Eco-Efficiency Analysis to the SEEbalance®

  • aim:

Integration of quantifiable social indicators in the BASF eco-efficiency analysis

  • schedule: starting point 2001

end point March 2005

  • this subproject was a part of the BMBF project „Sustainable Chemistry of Aromatics“

co-operation partners for the development of the SEEbalance® were:

what is an socio eco efficiency analysis seebalance
What is an Socio-Eco-Efficiency Analysis (SEEbalance)?
  • Method for the comprehensive assessmentof products and processes.
  • Ecological and economic and social aspects are given equal weight in assessments.
  • The products are analyzed from the angle of the end customer.
  • (Future) scenariosand effects of various action options are presented.
  • Eco-efficiency analysis is a standard tool in the BASF Group; more than 240 analyses have been carried out (about 15 SEEbalance).
seebalance results men s shirts
SEEbalance® Results: Men‘s Shirts
  • This analysis includes in the social assessment the stakeholder employees, consumers, national community and future generations.
  • The 100% polyester shirt is a hypothetical shirt considered only for comparison and is not frequently encountered in the market.

User benefit

alternative

Comparable alternatives

Wearing a blue men‘s shirt (40 times)

100 % cotton shirt

100% polyester shirt (PET)

blended fabric shirt (65% cotton, 35% PET)

results base case blue men s shirts

Cotton

Blended fabric

PET

Results:Base Case: Blue Men‘s Shirts

Wearing a blue men‘s shirt (40 times)

0,75

0,75

envirnonmental burden

1,00

environmental burden

1,00

1,25

1,25

1,00

0,75

costs

0,75

0,75

1,25

1,00

1,00

costs

social influence

1,25

0,75

1,00

social influence

1,25

0,75

1,25

1,00

costs

weighting factor survey in germany

25%employees

15% working accidents

20% fatal working accidents

30% employees

60% toxicity potential

15% occupational diseases

15% qualified employees

20%consumer

40% other risks and product characteristics

25% toxicity potential + transport

15% gender equality

10% wages and salaries

10% integration of disabled people

20%

local & national community

10% professional training

15% part-time employees

25% number of trainees

5% strikes and lockouts

15% family support

20%

future generation

25% R&D (company expenditures)

50% child labour

25% capital investments

15%

international community

25% foreign direct investment

25% social security

25% imports from developing countries

Weighting FactorSurvey in Germany
analogies between ecological and social lca

1,0

0,5

0,0

Analogies between Ecological and Social LCA

Ecological LCA

Social LCA

Potential impact of product or processes on natural capitale. g. - energy consumption - global warming potential (GWP)

What is to be assessed?

Potential impact of product or processes on human/social capital e. g. - consumer - future generation

1st : Inventory analysis (inputs/ outputs)

2nd: Impact assessment for defined indicators

e. g. GWP: 11 CO2-equivalent per UB

1st : Inventory analysis (inputs/ outputs)

2nd: Impact assessment for defined indicatorse. g. employees: 3 working accidents per UB

Ökologischer Fingerprint

  • Social Fingerprint

Aggregation and presentation of results

Ecological Fingerprint

Employees

Energy consumption

1,0

Internationalecommunity

0,5

Consumer

alternative 1

UB = user benefit

Area use

Emissions

0,0

alternative 2

Local & national

community

Future generation

Raw material consumption

Eco-toxicity potential

results social fingerprint

employees

1,00

0,50

future

generation

consumer

0,00

national community

cotton

polyester

blended febric

Results:Social Fingerprint
  • The social fingerprint shows the social influence of a product or process according to the weighting factors
results employees working accidents

45

45

45

40

40

40

35

35

35

30

30

30

25

25

25

20

working accidents / 1 million CB

15

20

20

10

15

15

5

10

10

0

5

5

polyester shirt

cotton shirt

blended fabric

0

0

polyester shirt

cotton shirt

cotton shirt

blended fabric

blended fabric

material manufacture

yarning und weaving

water supply

energy and

transportation

confection

cultivation cotton

upgrading

Results:Employees: Working Accidents
  • The graph shows that the cotton shirt manufacture causes about four times more working accidents than the polyester shirt manufacture.
  • The accidents occur primarily during cotton cultivation, since this step is very labour – intensive.
  • Many accidents are caused by the use of pesticides.
assessment scheme for social criteria

Normalization factor

  • Question: To which extent does the product contribute to the socialproblem on a national level?
  • Character: objective
  • Source:
  • To be calculated fromnational statistics
  • Weighting factor
  • Question:
  • How serious is the social problemcompared to the others?(probability, extent and duration ofconsequences)
  • Character: normative, subjective
  • Source:
  • polls (among experts or stakeholders)

X

= total assessment factor

Assessment Scheme for Social Criteria

Source: Schmidt

course of action
Course of Action
  • The SEEbalance® will be used as an official tool for life cycle assessment in the eco-efficiency group
  • Boosted external communication and public relations
  • In the future 10 – 20 % of all studies will be SEEbalances®
how does seebalance work

„Social profile“ of 1000 t of polyester (analogous to eco-profile)

How Does SEEbalance ® Work?
  • 1st step: Search for the economic sector of the product

e.g. polyester: sector “production of polymers” (NACE 24.16)

  • 2nd step: Search for the entries in the social LCA database
    • e.g. Production of polymers (NACE 24.16):
      • Working accidents: 0.058 accidents / 1000 t
      • Number of employees: 9,9 employees / 1000 t
      • ... (all other indicators)
  • 3rd step: Multiply specific social profile with the product quantities
nace international compatibility

Industries

Goods

CPC

ISIC

Worldwide (UN)

CPA

NACE

EU-Level

national version NACE(e.g. WZ)

national version CPA (e.g. GP)

National Level

NACE - International Compatibility
  • Related classifications in more than 140 countries
  • Limited compatibility with NAICS (Canada, USA, Mexico)

Source: Eurostat 2003

nace the eu classification of industries
NACE - The EU-Classification of Industries

Sectors

Industries

A, B

Agriculture

and

forestry

,

fishing

C, D, E

Manufacturing

industry

F

Construction

Commerce,

hotel trade,

transports

G, H, I

Financial

industry,

enterprise

services

J, K

L-Q

Public

and private

services

nace hierarchical levels

Level

Code

Example

“1-letter”

A-Q

D

Manufacturing industry

“2-letters”

CA-DN

DG

Chemical industry

“2-digit”

01-99

24

Chemical industry

“3-digit”

01.1-99.0

24.1

Production of basic chemical

goods

“4-digit”

01.11-99.00

24.16

Production of polymers

NACE – Hierarchical Levels
life cycle of the cotton shirt
Life Cycle of the Cotton Shirt

production

use

disposal

mining of raw materials

fertilzer/

pesticides

raw materials

sum of all transports

MSWI

cultivation of cotton and transports

agents

retail

cleaning/ 40 times

yarning

confection

weaving

ironing

upgrading

collection of old clothing

production of chemicals for textiles

dyeing

wearing of the shirt

production in China

Not included because the impact for all alternatives are equal

seecube

0,75

Increasing socio-eco- efficiency

Environmental burden

1,00

Decreasing socio-eco efficiency

0,75

1,25

1,00

1,00

social influence

costs

1,25

0,75

alternative 1

alternative 2

SEECube®
placement of the seebalance
Placement of the SEEbalance®

„cradle-to-gate“

...from raw material to factory gate

„cradle-to-grave“

... including use and recycling

eco-profile

„cradle-to-grave and costs“

... including all life cycle costs

LCA

„cradle-to-grave, costs and

social aspects“

... including social aspects

eco-efficiency

SEEbalance®

aims of the seebalance
Aims of the SEEbalance®

1. „Quality-of-life“:

Improvement of objective living conditions

Improvement of subjective well-being

2. „Social Cohesion“:

Reduction of disparity and social exclusion

Fortification of social bonds and coherence

3. „Sustainability“:

Intergenerational fairness

International responsibility (intergenerational fairness)

According to the system of GESIS/ ZUMA 2001

reasons for the development of the seebalance

Due to the child labour in NIKE

sneaker production, a compaign which

proclaimed an Anti – Nike day was started (May 2001).

Reasons for the development of the SEEbalance®

Kölsch:

Darf man das LOGO von Nike verwenden? Negativ Werbung!!!

Integration of the third pillar of sustainability

Increasing pressure on part of society

Supposed hormonal effects of phthalates (plasticizer) in children’s toys resulted in disappearance from the market even though no scientitic proof existed

Acceptance by the customer is imperative for the purchase of a product

Taste of packaged food,

e.g. sausages

TV – enclosure with flame retardant

application of the seebalance

Internal

  • Strategy
    • Comparison of production sites
    • Comparison of markets
  • Marketing
    • (social) acceptance of the product (projects:

sausage -study, redevelopment of residential area)

External

Application of the SEEbalance®
  • Profit:
  • secure decisions about products
  • and markets
  • communication
    • on coperate level
    • on product level
  • has an established and quantifiable
  • basis
  • (e.g. for coperate reports)
procedure
Procedure

define customer benefit

identify products / processes

establish life cycle

society

ecology

economy

determination of social profiles for each step

determination of eco-profiles for each step

determination of costs for all life cycle segments

aggregation of stakeholder effects

aggregation of the effects categories

calculation of total life cycle costs

normalization of social effects

normalization of environmental impact

normalization of costs

create SEECube®