Eco-design IV

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Eco-design IV

• Tools and Strategies for Sustainable Consumption
  and Production

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Contents

• Overall strategies and concepts
• Tools
• 2.1. Business perspective
• 2.2. Analytical tools
• 2.3. Procedural tools
• 2.4. Communication tools
• 2.5. Product sustainability toolbox
• 3. Policies and Instruments

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1. Overall strategies and concepts

• of sustainable production and consumption

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Goal Sustainable Development- the three pillars
Environment
Economy
Sustainability
Social
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Sustainable Consumption and Production10-year
Framework of Programmes

• Identify activities, tools, policies, monitoring
  and assessment mechanisms, including, where
  appropriate scientific methods such as life-cycle
  analysis
• Develop production and consumption policies to
  improve the products and services
• Develop awareness-raising programs
• Develop and adopt, on a voluntary basis, ,
  consumer information tools ... UN guidelines on
  consumer protection...

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Policy principles

• Continuous improvement
• Transparency
• Eco-efficiency
• Precaution
• Life cycle thinking
• Polluter pays
• Common but differentiated responsibilities

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Overall Strategies

• Dematerialization
• Life Cycle Management
• Product Service Systems
• The Triple Bottom Line Concept
• Investment and insurance
• Corporate responsibility
• Reporting
• Education and training

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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

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Life Cycle Management

• 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.
• Life cycle thinking needs tools to make it
  practical to regular activities and decisions.

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Life Cycle Management (cont.)

• 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.

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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.

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Product Service Systems 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)

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Product Service SystemsThree main approaches

• Services providing added value to the product
  life cycle
• Services providing final results for customers
• Services providing enabling platforms for
  customers

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The Triple Bottom Line Concept
Three Pillars of Sustainable Development
Environment
Society
Sustainable Development
Economy
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The Triple Bottom Line Concept
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The Triple Bottom Line Concept
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TBL In Society

• Accepted concept
• Incorporated in law
• TBL assessments widely used
• Business reporting tool
• Expands decision-making scope
• Significant advancement over previous
  assessment tools

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2. Tools for sustainable production and
consumption

• 2.1. Business perspective
• 2.2. Analytical tools
• 2.3. Procedural tools
• 2.4. Communication tools
• 2.5. Toolbox

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2.1. Business perspective

• in SCP

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Business Goals

• Companies can act in two very different ways to
  Societys 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

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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.

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2.2. Analytical tools

• in SCP

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Three types of analytical tools for eco-design

• A. Quantitative tools such as LCA
• B. Matrices
• C. Checklists

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List of analytical tools

• Life Cycle Assessment (LCA)
• Material Input per Unit of Service (MIPS)
• Environmental Risk Assessment (ERA)
• Material Flow Accounting (MFA)
• Cumulative Energy Requirements Analysis (CERA)
• Environmental Input-Output Analysis (env, IOA)
• Life Cycle Costing (LCC)
• Total cost accounting (TCA)
• Cost-Benefit Analysis (CBA)
• Matrices
• Checklists

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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 No-Effect Concentration
Predicted Exposure Dose
Predicted ExposureConcentration
- Risk Characterisation - Uncertainty Analysis
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ERA steps

1. Hazard identification relationship between
   different levels of exposure and effects
2. Effect assessment
3. Exposure assessment

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Choice of more exhaustive examination
FIGURE 15.6 Steps in a risk assessment.
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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.

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Life Cycle assessment
From cradle to grave

• Impacts on
• Human health
• Ecosystems
• Resources

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ISO 14040 Life Cycle Assessment, Principles and
framework
Life cycle assessment framework
Goal and scope definition
Direct applications - Product development and
improvement - Strategic planning - Public policy
making - Marketing - Other
Inter- pretation
Inventory analysis
Impact assessment
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Life Cycle Assessment Structure
According to ISO 14040
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Life Cycle AssessmentInventory Analysis
Acquisition ofraw material
Production
Use/ reuse/ maintenance
Recycling/ Waste Management
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Steps of the inventory phase
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Example of a product system, production and use
of steel sheet metal, for life cycle inventory
analysis.
2. Mining of iron ore
1. Mining of coal
3. Mining of limestone
4. Crushing grinding
Product system
Environment
5. Transport
System boundary
6. Sintering
7. Blast furnace
8. Steel furnace
15. Production of electricity
9. Steel moulding
Elementary flows
10. Transport
11. Cutting, shaping
12. Use
13. Waste handling
14. Landfill
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Life Cycle AssessmentImpact Assessment
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Elements of the life cycle impact assessment
procedure.
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Elements of the interpretation phase of an LCA
study.
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LCA-result
Environmental impact / functional unit
Example
Amount of nitrate in water/ produced amount of
meat
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Types of environmental interventions in LCA

1. Extraction of abiotic resources
2. Extraction of biotic resources
3. Land use
4. Climate change
5. Stratospheric ozone depletion
6. Photo-oxidant creation
7. Human toxicity
8. Eco-toxicity
9. Acidification
10. Nutrification

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Strengths of LCA

• Comprehensive with respect to environmental
  impact connected to a function
• Avoids problem shifting
• Explicit distinction between science based
  information and value choices
• International standardisation by ISO
• Best practice identification envisaged in
  SETAC-UNEP programme

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Weaknesses of LCA

• Too complex
• Too data intensive
• Does not directly consider future changes in
  technology and demand
• Does not consider societal effects
• Only known and quantifyable environmental effects
  are considered
• Requires expert knowledge

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Life Cycle Costing (LCC)

• Looks at the complete life-span of a product to
  calculate the entire life cycle costs, which
  include all internal costs plus external costs
  (externalities) incurred through throughout the
  entire life cycle of a product, process or
  activity
• Puts a monetary value on the emissions and
  resource use (unfortumately, no valuation method
  has been generally agreed)

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Total Cost Accounting (TCA)

• Describes the long-term, comprehensive analysis
  of the full range of internal costs and savings
  resulting from pollution prevention and other
  environmental projects undertaken by a firm
• Comprehensive costs and savings inventory
• Precise cost allocation
• Use of long time horizons
• Use of profitability indicators which account for
  the time value of money
• Does not consider eco-efficiency

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Cost-Benefit Analysis (CBA)

• Determines whether or not the benefits of an
  investment or a policy outweigh its costs
• Very broad scope
• All costs and benefits are expressed in monetary
  values
• Large uncertainty because of many valuations

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CBA in energy and transport sectors
Steps in the analysis Tools, data
Step1. Emissions. Environmental burdens Technology characterisation Life Cycle Inventory
Step 2. Impacts. Dispersion. Exposure. Impacts. Dispersion models local, national, regional, global Exposure response functions public health, man-made environment (agriculture, materials), natural environment Critical loads Reseptor at risk data
Step 3. Damages Market prices Willingness to Pay - studies
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Eco-costs/Value ratio
retail
distribution
marketing
assembly
components
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Eco-costs

• The costs to prevent polluting emissions (to the
  air, water and ground), during the life cycle, at
  a sustainable level of earths carrying capacity
• The eco-costs of materials, taking into account
  the ratio of recycling
• The cost of energy at the price level of
  sustainable energy
• The eco-costs related to the costs of labour
• The depreciation of the eco-costs of production
  facilities

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Cost-effectiveness Analysis (CEA)

• Derivation of CBA
• Determines the least cost option of attaining a
  predefined target
• Benefits are not expressed in monetary terms

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Function-based approach (FBA)

• 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.

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Function Based Approach Example

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

• Need area or function
• Shelter
• Food
• Mobility
• Personal care
• Leisure
• Clothing
• Education
• Total

Average for Groningen/ the Netherlands as
reported by Tukker (2003)
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Material Flow Accounting

• 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

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Ecological Rucksack and MIPS

• Ecological Rucksack The total weight of
  material flow carried by an item if consumption
  in the course of its life cycle.
• MIPS (Materials Intensity per service unit) An
  indicator based on the material flow and the
  number of services provided.
• Reducing MIPS is equivalent to increasing
  resource productivity

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Ecological Rucksack Diagram
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Some other ecological rucksacks
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Plastic or Cotton Bag?
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Factor 4 and Factor 10

• Factor 4 the idea that resource productivity
  should be quadrupled so that wealth is doubled
  and resource use is cut in half. Doing more with
  less. Result substantial macroeconomic gains.
• Factor 10 per capita materials flows in OECD
  countries should be cut by a factor of ten.
  Requirement to be able to live sustainably in the
  next 25-50 years.
• Note technology for Factor 4 already exists!!
• Factor x Going beyond Factor 4 and Factor 10

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Material Flow Accounting (MFA) - approaches

• Specifies pathways of materials in, out and
  through the economy of a nation, a region, a
  community, business sector, company or household
• Two approaches
• The flow of bulk materials industrial
  metabolism (b-MFA bulk Material Flow Analysis
• The flows of a single substance or a group of
  substances (SFA Substance Flow Analysis

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MFA main characteristics

• Limited by a given region or a given period in
  time
• Cradle-to-grave approach
• Works well for a number of policy questions

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MFA - applications

• The bookkeeping of bulk materials and substance
  flows monitoring, accounting, inventories
• Modelling of bulk material flows and stocks to
  assess the origins of pollution, the fate of
  certain inflows, future trends in flows and stocks

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Cumulative Energy Requirements Analysis (CERA)

• CERA states the entire demand valued as primary
  energy which arises in connection with the
  production, use and disposal of an economic good
  (product or service)
• Limited formal recognition documentation only
  in Germany

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Model of CERA

• CERA CERAp CERAu CERAd
• CERA cumulative energy requirements of the
  economical good
• CERAp - cumulative energy requirements for the
  production
• CERAu - cumulative energy requirements for the
  use
• CERAd - cumulative energy requirements for the
  disposal

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Issues in CERA

• Related materials expenditures
• Selection of materials and process technology
  with respect to energy criteria
• Relevance of the treatment of used goods through
  energetic exploitation and disposal, recycling of
  parts, components and materials under energy
  aspects
• The influence of the service life of energy
  consuming or energy converting economic goods
  under energy aspects
• The emissions related to energy conversions
  during production, use and disposal

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Environmental Input-Output Analysis (env. IOA)

• IOA Wassily Leontief 1930s, focusing on
  industrial trades
• Env. IOA extension of IOA to consider pollution
  generation and abatement activities
• Requires very detailed data

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Categories of env. IOA

• Generalised Input-Output Models technical
  coefficients matrix reflecting also pollution
  generation and abatement activities
• Economic-Ecological Models extension of the
  inter-industry framework to include ecosystem
  sectors
• Commodity-by-Industry Models environmental
  factors are expressed as commodities tarbed in
  a commodity-by-industry input-output table

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2.3. Procedural tools

• Environmental Management Systems
• Environmental Audit
• Eco-design
• Supply chain management
• Environmental Audit
• Environmental Performance Review (E P R)
• Environmental Impact Assessment (EIA)
• Total Quality Environmental Management (TQEM)

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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).

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Environmental Management System principles

• How can an organisation formulate an
  environmental policy and objectives, considering
  legislative requirements and information about
  significant environmental impacts?
• Continual environmental improvement of the
  organisation
• ISO 14001

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Environmental Management System steps
Environmental policy
Management review
Planning
Checking and corrective actions
Implementation and operation
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Eco-design ( Life Cycle Design)

• Integration of environemtal aspects into the
  familiar product development process
• Step-by.step plan that goes through all stages (7
  steps) in product development
• Win-win situation benefits for both business and
  the environment
• Promoted by UNEP, 1997

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Eco-design

• Looks at the relation between a product and the
  environment. Some common propositions about
  eco-design or Design for Environment (DfE)
  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.

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Eco-design 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!
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Eco-design 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

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Eco-design Prioritisation Matrix

Category 3 Environmental benefits Technical and
economic problems
Category 1 Environmental benefits Technical and
economic feasibility
EnvironmentalAdvantages
Category 4 Few environmental improvements Technic
al and economic problems
Category 2 Few environmental improvements Technic
al and economic feasibility
-

-
Technical and Economic feasibility
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.
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Eco-design Example 1 - Humidity catchers
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Eco-design Example 2 Clothes from recycled
material
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Environmental audit

• Checking of the Environmental Management Systems
• ISO 14.010 sets out the principles and rules for
  an internal and external auditing of EMS

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Environmental Performance Evaluation

• Provides guidelines for the choice, monitoring
  and control of environmental indicators
  representing the performance of a company
• Supports internal decision making
• Three indicator categories (1) environmental
  condition indicators, (2) operational performance
  indicators, (3) managements performance indicators

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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.

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Environmental Impact Assessment

• Evaluation of effects related to a specific
  project
• Location-specific
• Comparison of alternatives
• Three types (1) strategic EIAs, (2) project
  EIAs, (3) location EIAs

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Total Quality Environmental Management (TQEM)

• Expansion of TQM programmes
• Four basic elements
• Customer Identification environmental quality
  is determined by customer preferences
• Continuous Improvement involves all employees
• Doing the job right the first time prevention
  of environmental risks
• Taking a System approach to design all
  components so that they function together, and
  support each other in achieving desired goals

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2.4. Communication tools

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

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Consumer Communication

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

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Eco-labelling

• Type 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.

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Eco-labelling Examples
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Multi-stakeholder dialogue

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

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Voluntary agreements

• Commitments undertaken by firms or by industrial
  organisations to deal with environmental problems
• The agreements are made with or recognised by
  public authorities

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2.5. Product Sustainability Toolbox
Management
Change
Engineering
Applications
Tools
Data
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Product Sustainability Toolbox

• Applications
• Material, Process and Product Comparison
• Investment Decision Support
• Strategic Planning
• Marketing, Customer and Regulatory Compliance
• Weak Point Analysis
• Benchmarking

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Product Sustainability Toolbox

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

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3. Policies and instruments

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

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Traditional life cycle view of policy
Use/Consumption
End of life/ disposal
Resource Inputs
Production
Maximise efficiency
Minimise waste
Traditional focus of governments
Traditional focus of governments
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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 products 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.

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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.

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Policy instrumentsto encourage SCP

• Regulatory standards, norms, EPR (environmental
  performance reviews), labelling, (enforcement)
• Economic instruments taxes, subsidies,credits,
  financial incentives, etc.
• Social awareness raising, education,
  information, voluntary initiatives
• Others indicators, green accounting...

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Policies and Instruments for SCP
Source OECD, 2002.