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1 Life Cycle Management a Business Guide to Sustainability Training Session 3 of 4 November 2006.

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Presentation on theme: "1 Life Cycle Management a Business Guide to Sustainability Training Session 3 of 4 November 2006."— Presentation transcript:

1 1 Life Cycle Management a Business Guide to Sustainability Training Session 3 of 4 November 2006

2 2 2 Life Cycle Management Training - Outline Introduction to LCM –First session How LCM is used in Practice –Second Session Communicating LCM Results –This Session! LCM and Stakeholder Expectations –Fourth Session

3 3 3 Introduction to LCM –First session Learning Objective: Understand the theoretical basis of life cycle management & its history 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? 09.15-10.00 Group exercise 10.00-10.30 Break for coffee & refreshments done

4 4 4 How LCM is used in Practice –Previous Session Learning Objective: Understand the practical aspects of LCM in policy development & business operations, through discussions of how to integrate it into decision making & through case examples 10.30-10.45 Life cycle management Definition & Benefits 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 12.00-12.30 Group exercise 12.30-13.30 Break for lunch done

5 5 5 Communicating LCM Results –This Session! 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 Main features and link with LCM 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

6 6 6 LCM and Stakeholder Expectations –Fourth Session Learning Objective: Understand how to identify stakeholders, as well as their priorities & concerns 10.30-10.35 Why Engage Stakeholders? 10.35-10.45 Identifying Stakeholders Potential Stakeholders Ask the right people Ranking 10.45-11.00 Importance of Including Stakeholders Risk Avoidance Opportunity Creation 11.00-11.45 Case example 11.45-12.30 Group exercise 12.30-13.30 Break for lunch

7 7 7 1.Definition and scope and section goals 2.Overview of LCM Communication toolbox – Main features and link with LCM 3.Which communication tools used in practice? Examples and diffusion 4.Case-studies –Sector-specific requirements –Leading companies with communication strategies 5.What comes next? Recent trends and outlook Contents

8 8 8 Definition and Scope & Section Goals

9 9 9 Definition of “Communication” within the present training kit: Any manner of information sharing with stakeholders, generally through one-way, non-iterative processes, e.g. Corporate Sustainability Reporting or product eco-labeling Definition

10 10 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) Drivers – Why communicating LCM?

11 11 Competitive advantage in emerging or new green markets –Final consumers –Business clients –Public administrations Better image –Consumers and clients –Financial stakeholders –NGOs and civil society –Legislators Influence regulations and pre-normative processes Opportunities / Target audiences

12 12 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 Target groups of communication

13 13 Provide good understanding of: –Communication tools and strategies –Why and how can be they valuable to business? Section Goals

14 14 Which communication tools used in practice by industry and business? Distinguish communication tools vs. target stakeholders –What is used to communicate with whom? Why and how communication valuable to business? –Relevance and diffusion of communication tools –Case-studies of companies with comprehensive communication strategies –Sector-specific drivers and communication needs Main questions/topics

15 15 Overview of LCM Communication Toolbox Main Features and Link with LCM

16 16 FIRM & ORGANIZATION LEVEL (F&O) Environmental reports EHS reports Social reports Sustainability reports CSR - Corporate Social Responsibility Company Codes Manuals of Conduct Audits Supplier evaluation systems PRODUCT-RELATED (P-R) Eco-labels Environmental claims Environmental product declarations Product Environmental Performance Indicators Product Profiles Eco-efficiency analysis Prod. Information Schemes GPP guidelines Advertising, Information brochures & campaigns, websites F&O P-R Communication Toolbox

17 17 External stakeholders Final consumers Business clients Public administrators and policy makers Financial stakeholders Other society stakeholders Suppliers Internal stakeholders Employees and management Shareholders F&O Ext Int P-R Int Ext Which tool to communicate to whom?

18 18 F&O Reporting - From Environmental Reporting to Corporate Social Responsibility (CSR) Global report output by « type » since 1992.

19 19 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 F&O Reporting – Contents & LCM

20 20 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 F&O Codes of Conduct & Supplier Screening

21 21 Wide range of Environmental Product Information Schemes (EPIS) Main classification according to verification: –First party verification –Third party verification/certification Coded by ISO norms 1402x P-R Product-related communication tools

22 22 14020 ISO norms Environmental claims and declarations Type-I ISO 14024 (1999) Environmental labels (e.g. EU-Flower, Blue Engel, White Swan) Type-II ISO 14021 (1999) Self-declared environmental claims Type-III ISO 14025 (2006) Environmental declarations (e.g. EPD ®, Eco-leaf) P-R Environmental Product Information Schemes (EPIS) - Reference norms

23 23 Indicate the overall environmental preferability of a product within a particular product category Qualitative, concise information –Allows consumers to take quick purchasing decisions Main features/characteristics: –Voluntary instrument –Multiple criteria –Life cycle approach –Third-party independent verification (national bodies) LCT - Life Cycle Thinking (but not necessarily LCA) explicitly used to set the criteria (multiple indicators) P-R ISO-type I ecolabels

24 24 Definition (ISO 14021): “self-declared environmental claims made by manufacturers, importers, distributors, retailers, or anyone else likely to benefit from such a claim without independent third-party certification” Several forms of communication: –Statements, symbols or graphics on product or package labels, or in product literature, technical bulletins, advertising, publicity, telemarketing, internet –Main advantage for firms: flexibility P-R ISO-type II environmental claims

25 25 Main features/characteristics: –Voluntary instrument –Generally single criteria –First-party self-declaration Relationship with product life cycle and LCM is implicit, generally weak P-R ISO-type II environmental claims

26 26 Definition (ISO 14025): “Quantified environmental data for a product, with pre-determined parameters, based on the ISO 14040 series of standards, which may be supplemented by other qualitative and quantitative information” Environmental Product Declarations (EPD) P-R ISO-type III environmental declarations

27 27 Environmental Product Declarations (EPD) - Main features/characteristics: –Voluntary instrument –Multiple environmental impact indicators (from LCA) –No threshold criteria / minimum levels to be met –Allows comparability of products –Third-party verified Product Category Rules (PCR) –Defines all rules for LCA study and EPD format for the specific product category –Open stakeholder consultation process Relationship with product life cycle is explicit, strictly based on underlying LCA study P-R ISO-type III declarations

28 28 Communication Toolbox and LCM

29 29 Which communication tools are used by industry and business in practice? Examples and Diffusion

30 30 External stakeholders Final consumers Business clients Public administrators and policy makers Financial stakeholders Other society stakeholders Suppliers Internal stakeholders Employees and management Shareholders F&O Ext Int P-R Int Ext Which tool to communicate to whom?

31 31 Very difficult to measure impacts of LCM communication –Direct impacts (e.g. increase of market share) –Indirect impacts (image, other factors, etc.) An indirect indicator for the importance of the different communication tools is the degree of its diffusion, e.g. –Number of labelled products –Amount of sales Importance and impacts of communication

32 32 ISO-type I labels are still the most widely used communication tool to final consumers However, important limitations of eco-labels  other communication tools are increasing awareness and fostering better use of products Simplification of complex life-cycle information into ISO-type II claims, however some credibility issues ISO-type III declarations for B2B – increasing but still limited diffusion Combination of tools and reporting for various stakeholders Observed trends

33 33 Communication to: I.Final consumers II.Business clients III.Public Administrations IV.Various stakeholders V.Suppliers VI.Internal communication Examples and diffusion of communication tools in function of target group

34 34 Diffusion of ISO-type I labels as of Oct. 2006 Source: Frankl et al (2006) I.1 - Final consumers - ISO-type I labels Country (Status) Year of establishment Product groups Firms Products Japan (October 2006) 1989 47 2107 5152 South Korea (June 2006) 1992 7 (groups) 103 (categories) 1001 4100 Germany (State July 2006) 1978 89 529 3,650 Nordic Countries (2006) 1989 61 680 n.a. EU (October 2005) 1992 24 309 n.a. The Netherlands (Milieukeur, October 2006) 1992 69 257 360 Catalonia (DGQA) 1994 26 171 895 Austria 1991 49 n.a. France 1992 19 n.a. Spain (AENOR) 1994 11 52 275 Sweden (Falcon) (October 06) 1992 11 n.a. China (2005) 1993 56 n.a. India (October 2006) 1991 16 n.a Brazil (ABNT– Qualidade Ambiental) 1993 10 (under development) n.a.

35 35 Example of diffusion: Evolution of sales of EU-Flower labelled products Source: I.1 - Final consumers - ISO-type I labels

36 36 “ISO-type I like” labels and certifications, e.g. FSC – Forest Stewardship Council –4945 Chain of Custody certificates in 73 countries as of Sep. 2006 –854 Forest management/COC certificate in 74 countries – PEFC – Pan European Forest Certification Blue Flag – Eco-Tex standard –Thousands of awards – I.2 - Final consumers – “ISO-type I like” labels

37 37 Examples: UKCRA The United Kingdom Cartridge Recyclers Association (UK) NAPM The National Association of Paper Merchants (UK) Ecological Woodparticle board (Italy) DIGODREAM- 100% recyclable textile floor covering (Italy ) I.3 - Final consumers – ISO-type II claims

38 38 I.3 - Final consumers – ISO-type II claims

39 39 Example: Fujitsu develops ISO-type III declarations and advertises it in newspapers I.4 - Final consumers – Advertising

40 40 Example: AISE Washright Campaign fosters better use of detergent products I.5 - Final consumers – Information campaigns

41 41 National EPD Programmes: –Sweden (107 declarations as Oct 2006, companies of several countries participating) –Japan (210 decl as Oct 2006) –South Korea (96 EDP as Oct 2006) –Norway (96 declarations) Many sector-specific EPD programmes –Particularly in the construction and building sector –IT sector –Automotive sector II.1 - Business clients ISO-type III declarations

42 42 Examples: Japanese Eco-leaf and German AUB EPD II.1 - Business clients ISO-type III declarations

43 43 Example of marketing of Eco-leaf at the example of CO2 emissions at Fujitsu II.2 - Business clients Marketing and Sustainability reports

44 44 Example: BASF Eco-efficiency analysis combined with “improved” ISO- type II claim (3 rd party critical reviewed) II.4 - Business clients Eco-efficiency + ISO-type II

45 45 Qualitative Claim Visual Self-claim II.5 - All clients –ddd Example: DOW BUILDING MATERIALS [Source: T.Smith 2005] II.5 - All clients Advertising (ISO-type II)

46 46 Green purchasing guidelines in Denmark Currently for 50 product groups Guideline typically 4-pages doc Checklist for more insight III.1 Public Administrations GPP Guidelines

47 47 Combination of tools used by Japanese companies to provide life cycle information to public stakeholders for green public procurement [Source: Resource: Japanese Ministry of Environment, 2003 Report of Green procurement] III.2 Public Administrations Combination of tools

48 48 [Source: J&J sustainability report 2003] Avoided life cycle costs at Johnson&Johnson IV.1 Various stakeholders Sustainability reporting

49 49 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 IV.1Various stakeholders Sustainability reporting

50 50 [Source: Menichetti, in Largo Consumo 1/2004] ASPECTSReported instrumentsHenkelJ&JP&GUnilever QualityISO9000 N.a. Environment ISO14000 Since 2003 all business units N.d. Since 2003 for all main sites EMAS---- LCA Social Responsibility SA8000On-goingN.a. OHSAS180117 plants N.a. Sustainability GRI Guidelines (in accordance) No DJSI (Eco-rating) Other Use of renewable energy sources N.a. IV.1 Sustainability reports & Life Cycle Information

51 51 IV.1 - Reporting – Diffusion per country

52 52 V.I - Suppliers – Codes of Conduct Example: LEGO Code of Conduct introduced in 1997 –Ethical –Social –Environmental –Health and Safety Internal requirements + extended to 200 suppliers Suppliers audited by independent auditors

53 53 Example: INMINSUR, Peru ISO 14001 at the main mining site Antapite Extended application of EMS to suppliers (10) Extended application to cover healty & safety aspects “Supplier assessment policy”: –Compliance with law –Attention to H&S of employees and subcontractors –Positive impacts on neighborhood –Minimize pollution of water courses V.II - Suppliers – Screening Systems

54 54 LCM is a formal part of 3M's new product introduction process worldwide Cross-functional, new product introduction teams use a LCM matrix for systematic and holistic assessment [Source: Lienne Pires – 3M Brazil] VI.1 – Internal communication LCM matrix at 3M Brazil LCM matrix analysis applied at 3M Brazil on an adhesive product As a consequence of LCM matrix analysis, opportunities were identified for process stage, use stage and disposal stage taking into consideration the changing from sticks shape to pellets shape

55 55 VI.2 – Internal Communication STEP®-model at Hartmann STEP®-model (Systematic Tool for Environmental Progress) since 1997 Integrates environmental impacts with assessments of health, safety and social relations over the product life cycle Department for Sustainable Development at Hartmann Corporate Headquarter in Denmark is responsible for guiding the production sites Simple tool for non-experts –developed and implemented throughout the organization  progressive integration in everyday decision-making [Source: A.A.Jensen 2006]

56 56 VI.3 - Internal Communication KEPIs at Nokia Key Environmental Performances Indicators (KEPIs) –Based on LCA results of a KEPI project by Motorola, Nokia, Panasonic and Philips –Method significantly reduces the reliance on the supply chain for data on material flows –Identifies components and materials that account for most of the environmental impacts over the life cycle Internal communication channels with employees: –Intranet –Two global events yearly –Global in-house magazines, global environmental e-magazine, monthly newsletters and several other internal publications [Source: Nokia, Integrated Product Policy Pilot Project – Stage 1 Final Report: Life Cycle Environmental Issues of Mobile Phones, Finland, April 2005]

57 57 ISO-type I ecolabels –Most suited for communication to consumers, allow for quick decisions, thousands of labelled products –Pros: Credibility (criteria, stakeholder involvement, 3 rd party verification) –Cons: Several limitations (top-down approach, limited number of product groups, format not always appropriate, bureaucracy) ISO-type I-like labels –Well suited for communication to consumers, allow for quick decisions, thousands of labelled products –Pros: Credibility (criteria, 3rd party verification) –Cons: restricted to specific sectors (e.g. wood, textiles) ISO-type II-environmental claims –Well suited for communication to consumers, thousands of claims –Pros: Flexibility (bottom-up approach) –Cons: limited credibility, usually not whole life cycle, just one environmental parameter Summarising considerations

58 58 ISO-type III environmental declarations –Most suited for B2B communication, complex for consumers, allow for comparison, hundreds of declarations worldwide –Pros: Credibility (PCR with stakeholder involvement, 3 rd party verification), large amount of detailed information, full life cycle –Contra: Complex information without benchmark, high resources need (full LCA), complicated for SMEs (simplified systems needed, currently being tested) Codes of conduct, supplier screening systems –Well suited for communication with and gather info from suppliers –Pros: Simplicity and flexibility, well suited to involve SMEs –Contra: Limited to cradle-to-gate, not necessarily 3 rd party verified Summarising considerations – (cont.)

59 59 Sector-specific approaches & Case-studies

60 60 Presence of a Communication Strategy Sector-specific drivers Combination of tools –Firm-level reporting –Product-oriented communication (combination of labels) ISO-type I eco-labels “ISO-type I like” labels and certification ISO-type II environmental claims ISO-type III environmental declarations Social labels –Advertising & marketing Focus on Sustainability Two sectors: I.Energy II.Electronics Key aspects of case-studies

61 61 Pressure from regulation / EU Directive on electricity markets –Fuel Mix disclosure –Public information on environmental impacts, at least in terms of CO 2 emissions and radioactive waste Information request from business clients Emerging markets for “Green Electricity” –Green pricing / tariffs –Green electricity labels Green Public Procurement programs of public administrations Social acceptance issues / Dialogue with stakeholders –e.g. nuclear, but also renewables I.Energy Sector-specific drivers

62 62 Vattenfall (SE) Enel (IT) British Energy (UK) Electricité de France (FR) I.Energy Examples of Life Cycle Communication

63 63 Longstanding experience in LCA 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 ISO-type I ecolabel for certification of “green energy” Sector I.Energy Case-study 1: Vattenfall (Sweden)

64 64 Vattenfall can apply for labelling for electricity ca 1 TWh, Bra Miljöval, ”Good Environmental Choice” 95% of electricity production is certified with an Environmental Product Declaration [Source: Bodlund 2005] I.1Vattenfall Combination of EPIS for communication

65 65 Information system open for all products and services Based on ISO/DIS 14025 Third-party verified and certified An EPD ® for electricity and district heat contains –Life Cycle Assessment (LCA) –Study of impacts on biodiversity –Environmental Risk Assessment (ERA) –Radiology (nuclear power) [Source: Bodlund 2005] I.1Vattenfall Added value of certified EPD ® - More than LCA

66 66 LCA towards common practice Credibility needed, ensured by third-party certification and Product Category Rules (PCR) with stakeholder participation Focus on not just one environmental issue, but several ones EPD ® is one way, which Vattenfall Nordic countries have chosen for keeping track Key values: “Openness and accountability” [Source: Bodlund 2005] I.1Vattenfall Strategy and key conclusions at Vattenfall

67 67 LCA activities –Since 1999 at R&D level –Just recently at corporate level (Environmental Direction) First two EPDs in 2004-05 within the LIFE-INTEND project EPDs on two renewable energy technologies –Wind (first EPD of electricity systems in Italy) –Geothermal (first EPD worldwide) EPDs used for communication with local authorities –Social acceptance issues (wind) –Provide holistic approach and new perspective on comparison of technologies Communication channels: website + sustainability report Green pricing: adoption of guarantee label “100% energia verde” Sector I.Energy Case-study 2: Enel (Italy)

68 68 I.2Enel EPDs at Enel

69 69 I.2Enel - Green electricity labelling for business clients and consumers Green electricity label is also attached to the products of the business client buying renewable energy from Enel (e.g. producer of mineral water)  Important means of LC communication

70 70 LCM results (e.g. green electricity labelling) is communicated through Corporate Sustainability Report I.2Enel LCM in Sustainability reporting

71 71 Environment embedded in management structure LCA/LCT and eco-design with clear targets Green Public Procurement programs of public administrations –Japan, China, other countries and public administrations Pressure from regulation –WEEE, RoHS, Directives on batteries and accumulators containing mercury, etc. Information request from business clients Diversification and competitiveness on the market Increasing attention from financial stakeholders II.Electronic Sector Sector-specific drivers

72 72 Samsung Seiko Epson Canon Konica Minolta Matsushita Electric / Panasonic Ricoh II.Electronic Sector Examples of LC communication

73 73 Green management report since 1999 Environment/Safety Management Committee, headed by CEO LCA first adopted in 1995, currently applied for design & development of products, in combination with DfX (design for recycle/service/disassembly/assembly) Internal tool EPS – Eco-Product System –5 modules: LCA, ecodesign, environmental accounting, Green procurement, Customer Service Wide range of EPIS applied [Source: Menichetti 2005] Sector II.Electronic Sector Case-study 1: Samsung (S. Korea)

74 74 ISO TYPE I Kela (since 1995) More than 60 products, of which: 7 models of printer 1 model of fax 5 models of TV sets 20 models of computers+monitors 8 models of air purifiers 19 models of other products (not specified) TCO 15 models of displays Blue Angel 1 model of printer ISO TYPE II Eco – RoHS compliant label (for memories, PwBs, DVDs, digital cameras, etc. ISO TYPE III EMC (Korean EPD system) 1 model of digital camera 1 model of optical disk drive 1 model of TFT-LCD plate glass 1 model of CRT glass 1 model of TFT-LCD monitor 1 model of PDP TV 1 model of air conditioner 1 model of VCR 1 model of household refrigerator 1 model of laser printer [Source: Menichetti 2005] II.1Samsung Combination of applied EPIS Different EPIS applied for different products and different markets

75 75 Energy Labels EU Energy Star 10 models of PC monitor US Energy Star 15 models of PC monitor 2 models of printer/fax36 models of printer/fax 16 models of printer75 models of printer 8 models of MFD14 models of MFD 3 models of fax machine18 models of fax machine Hong Kong Energy Efficiency labelling scheme 3 models of printer Energy Saving Label South Korea Several products, including: TVs, notebooks, mobile phones, air conditioners [Source: Menichetti 2005] II.1Samsung Combination of applied EPIS – (cont.) Energy labels used in relevant markets in addition to env. labels and declarations

76 76 Self-definition: “Visionary Company” –CEO: “aim of the corporation is to be five or ten years ahead of other companies in implementing comprehensive eco-programs, thus exceeding the expectations of its stakeholders” Environmental report since 1999, Sustainability and CSR report since 2003 –Environmental target and progress LCA both at product and production plant level –Strong emissions reductions achieved in new plant Groupwide LCT targets at each level: –Design, procurement, manufacturing, sales, recovery/recycling Obtaining environmental label qualifications is an objective of both design and sales departments [Source: Menichetti 2005] Sector II.Electronic Sector Case-study 2: Seiko-Epson (Japan)

77 77 ISO TYPE I Eco Mark Inkjet, laser, and SIDM printers + paper Blue Angel 2 models of printer 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 ISO TYPE III Ecoleaf 1 model of notebook PC 15 models of printer 1 model of desktop PC20 models of data projector 1 model of PC display 4 models of large format printer Energy Labels International Energy Star 4 models of computer US Energy Star 1 model of MFD 6 models of printer25 models of printer 3 models of scanner7 models of scanner Energy Saving Label South Korea N.A. Energy Conservation Product Certification China several models of printers (inkjet, laser, SIDM) [Source: Menichetti 2005] II.2Seiko-Epson Combination of applied EPIS Different EPIS applied for different products and different markets

78 78 Existence of an overall communication strategy Each type of EPIS has its own target-audience and objectives ISO-type II label “Epson Ecology” demonstrates improved environmental performance over conventional models (both IT and semiconductors) –Customers can obtain specifications with Epson Ecology Profile Specific ISO-type II labels for sustainable procurement –IT Eco Declaration format in Scandinavian countries –PC green label in Japan (indicates promotion “recycling society” and meeting industry-wide voluntary targets) [Source: Menichetti 2005] II.2Seiko-Epson Communication Strategy

79 79 High priority on ISO-type I ecolabels –Japan, Taiwan and Germany –In Taiwan increased sales  Epson aims at certifying at least 80% of entire product range –Respond to growing number of green public procurement regulations (e.g. certified for China’s energy conservation product certification) 42 models hold Ecoleaf ISO-type III declaration Strong internal LCM communication Use of web-based communication tools [Source: Menichetti 2005] II.2Seiko-Epson Communication Strategy – (cont.)

80 80 What comes next? Outlook

81 81 Reporting: More Life Cycle Approaches Product-related communication: towards providing benchmarks and communicating progress Sustainability assessment (also product-related) integrating environmental, social and economic aspects One tool is not enough! Combination of EPIS along the product life-cycle Recent and near-future trends

82 82 Oct 2006: Revision of GRI Guidelines (G3) Increasing attention to life cycle management Sustainability reporting

83 83 Example: ISO-type II labels in Japan Panasonic: Factor X provides concise information about the improvement of new products with respect to old ones Communicating progress (product-related) New ISO-type II claims 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)

84 84 Recent study (2006) on Consumer demands on Type III environmental declarations Recommendation: Benchmark with graphical presentation –Economic benchmark, reflecting quality/price ration –Benchmark both within product category and average goods [Source: K.Christiansen et al 2006] Future EPDs with benchmarking

85 85 “Socio-Eco-Efficiency Analysis” (SEEbalance®) at BASF [Source: A.A.Jensen 2006] Towards product-related sustainability communication Used for internal purposes (eco-design, product development) but also: Marketing, support to external customers and social acceptance of product For communication issues e.g. in corporate sustainability report

86 86 Life Cycle Management Training - Outline Introduction to LCM –First session How LCM is used in Practice –Second session Communicating LCM Results –Third session LCM and Stakeholder Expectations –Fourth Session

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