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 Sustainability Social EnvironmentEconomy

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 growth and 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. 1.Prevention or reduction at the source 2.Recycling 3.Treatment 4.Landfill or other form of emission into the environment (as latest measure and in the most safe way possible). Waste hierarchy

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. 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 Success factors for eco-efficiency

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 to natural systems Network of industrial systems that cooperate reusing residual materials and energy in the same network Systematic analysis of the material and energy flows in the industrial systems Minimization of the generation of waste and environmental impacts

19. Polluters pays Emisiones (toneladas/ año) W Costes marginales de reducción Daños marginales Ptas. EuEu EeEe EdEd ab E e : 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: 1.Reactive : Fulfilling existing laws, directives and perhaps standards 2.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. 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. Environmental Audit Check List

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

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

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 (CH 4 ), but this requires energy, which is delivered by burning methane Resulting in an emission of 14kg CO 2 for 10kg of CH 4. Global Warming Potential (GWP) of CH 4 is 25 times that of CO 2 per unit of weight. Without recompression, the emission of 10kg CH 4 leads to a GWP of 250kg CO 2 equivalents With recompression, there is only an emission of 14kg CO 2 equivalents

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

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

35. Need for spatial differentiation in different impact categories

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

37.  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 Industrial Accident Risk Evaluation

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. Consideration of abatement costs Comparison of this cost with the abatement results that are obtained with a certain amount of money When investing this money in environmental improvement the option is chosen that shows the best effectiveness Cost Effectiveness Analysis

40. 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). Cost Benefit Analysis (CBA)

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

42. Health Effect Analysis Toxicological approach Epidemiological approach

43. 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 Impact Output Analysis (IO-LCA)

44. Example: Use of IO-LCA for consumption patterns Need area or function Shelter Food Mobility Personal care Leisure Clothing Education Total Direct and indirect energy use per person* 39% 18% 9% 8% 6% 2% 100% *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 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).

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

50. Eco-design III: 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

51. 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. Technical and Economic feasibility Environmental Advantages + +- - Category 3: Environmental benefits Technical and economic problems Category 4: Few environmental improvements Technical and economic problems Category 2: Few environmental improvements Technical and economic feasibility Category 1: Environmental benefits Technical and economic feasibility Eco-design IV: Prioritisation Matrix

52. Eco-design V: Example 1 - Humidity catchers

53. Eco-design VI: Example 2 – Clothes from recycled material

54. 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 CSR questionnaires with audits and training

55. According to ISO 14010, a systematic process of verification and objective evaluation to define if the activities, facts, conditions and systems in place for environmental management are in line with the audit criteria and the communication of the result of this process to the client Required after the installation of an environmental management system set-up or filling in a supplier questionnaire Verification that the activities and results of an organisation are carried out according to defined standards for the environment, labour conditions and other sustainability issues Sustainability Audit

56. Communication tools Consumer Communication and Marketing Eco-labelling Multi-stakeholder dialogue

57. Consumer Communication Opportunities for the consumer to make a change: Conscious purchasing Consumer´s 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

58. “I use Body Shop products which play a role in supporting third world countries and their jobs.” Mass Media & Marketing are key Consumer Communication II: Advertising and Marketing

59. 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.

60. Eco-labelling II: Examples

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

62. Example of the electronics industry Science, TechnologyGovernments Suppliers Financial community ELECTRONICS INDUSTRY Voters Customers Members Customers Unions NGO’s

63. Product Sustainability Toolbox Data Tools Applications Change

64. Product Sustainability Toolbox Applications  Material, Process and Product Comparison  Investment Decision Support  Strategic Planning  Marketing, Customer and Regulatory Compliance  Weak Point Analysis  Benchmarking

65. Product Sustainability Toolbox Tools  ERA, LCA, MFA/ SFA  Eco-design/ DfE  Eco-labelling: Type I, II, III  Supply Chain Management  Multi-stakeholder dialogue  Consumer Communication  and more...

66. Manager decisions and its potential to cause environmental impact Decisión del manager Impacto Ambiental Tiempo Límite Decision-making situations

67.  in very populated and acidification-sensitive area  next to the mining site  in pure populated & and no acidif.-sensitive area  far away from mining site Two products produced in the same way but in different regions Electricity generated from coal Electricity generated from coal Combustion of coal as an important part of the life cycle Combustion of coal as an important part of the life cycle Minimaltotal emissions and energy demand  Minimal total emissions and energy demand - Specific region not considered - Specific region not considered Minimalrisk for the environment  Minimal risk for the environment - Extra transport not considered - Extra transport not considered Which tool to choose? An example Case 1 Case 2 Case 1 Case 2 LCA: ERA:

68. Policies and instruments Integrated Product Policy Sustainable Procurement Policy instruments to encourage SCP

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

70. 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 product’s 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.

71. 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.

72. Policy instruments to encourage SCP  Regulatory: standards, norms, EPR, labelling, (enforcement)  Economic instruments : taxes, subsidies,credits, financial incentives, etc.  Social: awareness raising, education, information, voluntary initiatives  Others : indicators, green accounting...

73. ISO standards The five groups belonging to ISO 14000 are: ISO 14001,04:Guías para documentar Sistemas de Gestión Ambiental. ISO 14010,11,12: Guías para realizar Auditorias Ambientales. ISO 14020, 21,22,23,24: Etiquetado ambiental. ISO 14031: Evaluación del desempeño ambiental ISO 14040,41,42,43: Análisis del ciclo de vida.

74. Policies and Instruments for SCP II *Source: OECD, 2002.

75. What now? What does SCP mean in your day to day work? What is needed to include a life cycle perspective in current work? How can you take advantage of existing (analytical) tools and how much have you thought of addressing the consumer needs? Who will you need to work with to achieve your integrated target objectives?

76. Take away message “ 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.