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Training Session 3 of 4
November 2006
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Life Cycle Management
• Introduction to LCM
Training - Outline – First session
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Learning Objective: Understand the theoretical basis of life cycle
• Introduction to LCM
management & its history
– First session
08.00-08.30 What is a life-cycle? Impacts & value created
along the life cycle of a product or service
Definitions
History
Use
08.30-08.40 Why LCM is needed in business and in
government?
Drivers
08.40-09.15 What does LCM encompass?
What are the unique aspects of LCM?
done
09.15-10.00 Group exercise
10.45-11.00 LCM involves…
Learning from a range of examples
11.00-12.00 A process for implementing LCM
Plan – Do – Check – Adjust
A focus on design
Further examples to illustrate
done
12.00-12.30 Group exercise
12.30-13.30 Break for lunch
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Learning Objective: Provide a good understanding of
communication tools and strategies. Why and how they can
be valuable to business?
08.00-08.15 Why communicating LCM? To whom?
Definition and scope, drivers, target
groups of communication
08.15-09.00 Communication toolbox • Communicating LCM Results
Main features and link with LCM
– This Session!
Examples and diffusion of tools
09.00-09.45 Case-studies
Sector-specific drivers
Communication strategies
Combination of tools
09.45-10.00 Group exercise
10.00-10.30 Break for coffee & refreshments 5
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Learning Objective: Understand how to identify
stakeholders, as well as their priorities & concerns
4. Case-studies
– Sector-specific requirements
– Leading companies with communication strategies
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Definition and Scope &
Section Goals
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Definition
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Drivers – Why communicating LCM?
• Consumer demands
• Information request from business clients (e.g in the supply chain)
• External pressure from society stakeholders (e.g. NGOs) and civil
society
• Increasing attention from financial stakeholders
• Green Public Procurement programs of public administrations
• Requirements from policy-makers (e.g. WEEE and RoHS European
Directives)
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Opportunities / Target audiences
• Better image
– Consumers and clients
– Financial stakeholders
– NGOs and civil society
– Legislators
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Target groups of communication
• External stakeholders
• Final consumers
• Business clients
• Financial stakeholders
• Public administrators and policy makers
• Civil society and society stakeholders
• Suppliers
• Internal stakeholders
• Shareholders
• Employees and management
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Section Goals
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Main questions/topics
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Overview of LCM Communication Toolbox
Main Features and Link with LCM
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Communication Toolbox
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Reporting - From Environmental Reporting to
Corporate Social Responsibility (CSR)
F&O
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Reporting – Contents & LCM
F&O
• Many different approaches
• Several guidelines (e.g GRI – Global Reporting Initiative)
• Difficult classification, because
– Voluntary instruments
– Different and heterogeneous industry sectors
• Life Cycle Thinking (LCT) and Life Cycle Management (LCM) not
always taken into account / reported
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Codes of Conduct & Supplier Screening
F&O
• Set of requirements on
– Ethical
– Social
– Health & Safety
– Environmental aspects
• To be fulfilled internally in the company
• Often extended to suppliers
• Good tool to interact with SMEs
• Link with LCM intrinsic in
– Corporate Social Responsibility
– Extended Producer Responsibility
– Involvement of Suppliers
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Product-related communication tools
P-R
• Wide range of Environmental Product Information
Schemes (EPIS)
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Environmental Product Information Schemes
(EPIS) - Reference norms
P-R
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ISO-type I ecolabels
P-R
• Indicate the overall environmental preferability of a product within a
particular product category
• Main features/characteristics:
– Voluntary instrument
– Multiple criteria
– Life cycle approach
– Third-party independent verification (national bodies)
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ISO-type II environmental claims
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ISO-type II environmental claims
P-R
• Main features/characteristics:
– Voluntary instrument
– Generally single criteria
– First-party self-declaration
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ISO-type III environmental declarations
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ISO-type III declarations
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Which communication tools are used by industry
and business in practice?
Examples and Diffusion
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Which tool to communicate to whom?
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Importance and impacts of communication
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Observed trends
• ISO-type I labels are still the most widely used communication tool
to final consumers
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Examples and diffusion of communication tools
in function of target group
Communication to:
I. Final consumers
II. Business clients
III. Public Administrations
IV. Various stakeholders
V. Suppliers
VI. Internal communication
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I.1 - Final consumers - ISO-type I labels
South Korea (June 2006) 1992 7 (groups) 103 (categories) 1001 4100
– Qualidade
Brazil (ABNT 1993 10 (under development) n.a. n.a.
Ambiental)
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I.1 - Final consumers - ISO-type I labels
Source: http://ec.europa.eu/environment/ecolabel/marketing/statistics_en.htm
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I.2 - Final consumers – “ISO-type I like” labels
• Blue Flag
– www.blueflag.org/blueflag
• Eco-Tex standard
– Thousands of awards
– www.oeko-tex.com
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I.3 - Final consumers – ISO-type II claims
Examples:
• UKCRA The United Kingdom
Cartridge Recyclers
Association (UK)
• Ecological Woodparticle
board (Italy)
• DIGODREAM- 100%
recyclable textile floor
covering (Italy)
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I.3 - Final consumers – ISO-type II claims
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I.4 - Final consumers – Advertising
Extraction
Transportation
Environmental Impact
Use
Disposal/Recycling
Transportation
• Example: AISE
Washright Campaign
fosters better use of
detergent products
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II.1 - Business clients
ISO-type III declarations
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II.1 - Business clients
ISO-type III declarations
• Examples: Japanese Eco-leaf and German AUB EPD
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II.2 - Business clients
Marketing and Sustainability reports
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II.4 - Business clients
Eco-efficiency + ISO-type II
• Example: BASF
Eco-efficiency analysis
combined with “improved” ISO-
type II claim (3rd party critical
reviewed)
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II.5 - All clients
Advertising (ISO-type II)
• Example: DOW BUILDING MATERIALS
• Qualitative Claim
• Visual
• Self-claim
II.5 - All clients –ddd
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III.1 Public Administrations
GPP Guidelines
• Green purchasing guidelines in
Denmark
• Currently for 50 product groups
• Guideline typically 4-pages doc
• Checklist for more insight
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III.2 Public Administrations
Combination of tools
• Combination of tools used by Japanese companies
to provide life cycle information to public stakeholders for green
public procurement
Local authorities Total Eco-Mark Energy star FSC Eco-Leaf
(ISO-I) (ISO-III)
prefecture 56 55 52 7 4
100% 98.2% 92.9% 12.5% 7.1%
municipality -ward & city 449 441 247 11 20
100% 98.2% 55.0% 2.4% 4.5%
town & village in the prefecture 917 846 161 5 39
100% 92.3% 17.6% 0.5% 4.3%
Total 1422 1342 460 23 63
100% 94.4% 32.3% 1.6% 4.4%
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IV.1 Various
Variousstakeholders
stakeholders
Sustainability reporting
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IV.1 Various stakeholders ECOBILANCIO
ITALIA
Sustainability reporting
• Henkel: 1992 first corporate Environmental Report
Since 2000 Sustainability Report
• Procter&Gamble: 1993 first corporate Environmental Report
Since 1999 Sustainability Report
• Unilever: 2000 first corporate Environmental Report
Since 2001 Environmental Report + Social Report
• Johnson&Johnson: Since 2000 Corporate Sustainability Report
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IV.1 Sustainability reports & Life Cycle
Information
ASPECTS Reported instruments Henkel J&J P&G Unilever
Environment
EMAS - - - -
LCA
Social Responsibility
GRI Guidelines
No
(in accordance)
Sustainability
DJSI (Eco-rating)
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V.I - Suppliers – Codes of Conduct
• Example: LEGO
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V.II - Suppliers – Screening Systems
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VI.1 – Internal communication
LCM matrix at 3M Brazil
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VI.2 – Internal Communication
STEP®-model at Hartmann
• STEP®-model (Systematic Tool for Environmental Progress) since
1997
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VI.3 - Internal Communication
KEPIs at Nokia
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Summarising considerations
• ISO-type I ecolabels
– Most suited for communication to consumers, allow for quick decisions,
thousands of labelled products
– Pros: Credibility (criteria, stakeholder involvement, 3rd party verification)
– Cons: Several limitations (top-down approach, limited number of
product groups, format not always appropriate, bureaucracy)
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Sector-specific approaches &
Case-studies
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Key aspects of case-studies
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I. Energy
Sector-specific drivers
• Pressure from regulation / EU Directive on electricity markets
– Fuel Mix disclosure
– Public information on environmental impacts, at least in terms of CO2
emissions and radioactive waste
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I. Energy
Examples of Life Cycle Communication
• Vattenfall (SE)
• Enel (IT)
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Sector I. Energy
Case-study 1: Vattenfall (Sweden)
• Extensive reporting
– Environmental reports
– Life cycle assessment of Vattenfall’s electricity supply in Sweden
2005
– Several EPDs
• EPD Lule River 1999 first absolute EPD® in the Swedish system
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I.1 Vattenfall
Combination of EPIS for communication
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I.1 Vattenfall
Added value of certified EPD® - More than LCA
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I.1 Vattenfall
Strategy and key conclusions at Vattenfall
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Sector I. Energy
Case-study 2: Enel (Italy)
• LCA activities
– Since 1999 at R&D level
– Just recently at corporate level (Environmental Direction)
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I.2 Enel - Green electricity labelling for
business clients and consumers
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I.2 Enel
LCM in Sustainability reporting
LCM results (e.g. green electricity labelling) is communicated through
Corporate Sustainability Report
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II. Electronic Sector
Sector-specific drivers
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II. Electronic Sector
Examples of LC communication
• Samsung
• Seiko Epson
• Canon
• Konica Minolta
• Matsushita Electric / Panasonic
• Ricoh
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Sector II. Electronic Sector
Case-study 1: Samsung (S. Korea)
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II.1 Samsung
Combination of applied EPIS
ISO TYPE I
More than 60 products, of which:
7 models of printer
1 model of fax
20 models of computers+monitors
1 model of VCR
[Source: Menichetti 2005]
1 model of household refrigerator
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II.1 Samsung
Combination of applied EPIS – (cont.)
Energy Labels
10 models of PC monitor 15 models of PC monitor
Hong Kong Energy 3 models of printer Energy Saving Label Several products, including: TVs,
Efficiency labelling South Korea notebooks, mobile phones, air
scheme conditioners
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Sector II. Electronic Sector
Case-study 2: Seiko-Epson (Japan)
Eco Mark
Inkjet, laser, and SIDM printers + Blue Angel 2 models of printer
paper
Taiwan Green Mark 41 products, including laser printers, inkjet printers and cartridges
ISO TYPE II
50% of all products and 43% of total sales in all business qualify for the Epson Ecology label
Energy Labels
4 models of computer
and different markets 1 model of MFD
Energy Saving Label N.A. Energy Conservation Product several models of printers (inkjet,
South Korea Certification laser, SIDM)
China
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II.2 Seiko-Epson
Communication Strategy
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What comes next?
Outlook
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Recent and near-future trends
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Sustainability reporting
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Communicating progress (product-related)
New ISO-type II claims
• Example: ISO-type II labels in Japan
• Panasonic: Factor X provides concise information about the
improvement of new products with respect to old ones
GHG factor = (GHG efficiency of the new product) / (GHG efficiency of the old product),
where
GHG efficiency = (Product life x Product functions) / (GHG emissions over the entire life cycle)
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Future EPDs with benchmarking
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Towards product-related sustainability
communication
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