Akzo Nobel and Sustainability AIChE conference Atlanta, April 14, 2005 Klas Hallberg Sustainable Development group Akzo Nobel (Sweden)

Agenda Akzo Nobel company profile Practical use of eco-efficiency tools today Life Cycle Assessment from salt to cardboard Environmental Risk Assessment of an asphalt additive Eco-efficiency evaluation of colorants The DANTES project - an example of openness in communication between companies and the society

Akzo Nobel profile A Dutch multi-national company created in 1969. Roots trace back to 1777 Serving customers with healthcare products, coatings and chemicals 17 billion $ in net sales (2003) More than 60 000 employees Operates in about 80 countries

Sustainable Development group Klas Hallberg Karin Sanne Malin Bogeskär Anna-Lena Palm Johan Widheden Akzo Nobel Surface Chemistry Akzo Nobel Functional Chemicals Akzo Nobel Base Chemicals Eka Chemicals Akzo Nobel Salt And more! Provide services to:

Agenda Akzo Nobel company profile Practical use of eco-efficiency tools today Life Cycle Assessment from salt to cardboard Environmental Risk Assessment of an asphalt additive Eco-efficiency evaluation of colorants The DANTES project - an example of openness in communication between companies and the society

Life Cycle Assessment (LCA)

LCA from salt extraction to Stora Enso cardboard Electrolysis Environmental hotspots in the production of NaOH? NaOH NaCl Salt extraction Pulp & Paper Environmental profile of salt improved from 1998 to 2000? Have paper chemicals a significant influence on the environmental profile of cardboard? Stora Enso cardboard

Business value of the LCA example Salt extraction: CO2 decrease => good economy e.g. energy savings, CO2 emission trading Electrolysis: Relevant information to meet NGO´s specific concerns e.g. SO2 and NOX Focus on the transport instead of emissions from the site => avoid sub optimization Pulp & Paper: Sales support New business or more important; we don’t loose existing business!

Agenda Akzo Nobel company profile Practical use of eco-efficiency tools today Life Cycle Assessment from salt to cardboard Environmental Risk Assessment of an asphalt additive Eco-efficiency evaluation of colorants The DANTES project - an example of openness in communication between companies and the society

Environmental Risk Assessment (ERA) Data evaluation Exposure assessment Effect assessment PEC = Predicted Environmental Concentration RCR < 1 No risk! PNEC = Predicted No-Effect Concentration NOEC No observed effect concentration: The highest concentration of a material in a toxicity test that has no statistically significant effect on the exposed population of test organisms compared to the controls.  When derived from a life cycle or partial life cycle test, it is numerically the same as the lower limit of the MATC.  Also called no observed adverse effect level (NOAEL) or no observed effect level (NOEL). ERA life cycle Risk Characterisation Ratio RCR = PEC / PNEC

Environmental Risk Assessment (ERA) for an asphalt additive (Wetfix) The asphalt additive (Wetfix): Promotes the adhesion between bitumen and aggregate (hot mix) in order to extend the life time of an asphalt pavement Is used in low concentrations (0,2-0,4% weight of bitumen)

Simplified life cycle of the asphalt additive (Wetfix) Extraction of Resource A (eg. natural gas) Extraction of Resource B Refining of Resource B Simplified life cycle of the asphalt additive (Wetfix) Production of Raw Material 1 Transport of Raw Material 1 Production of Raw Material 2 Transport of Raw Material 2 LCA Production of an asphalt additive ERA Use of product Waste handling of Product

Comparison between LCA & Environmental Risk Assessment (ERA) ERA : Not including resource consumption etc. LCA : Difficult to include inherent properties Thorough Environmental Assessment

Comparison between LCA & Environmental Risk Assessment (ERA) Starting point: “the substance” ERA LCA LCA Starting point: one application Raw materials Production/formulation Use

The potential role of Life Cycle Assessment in regulation of chemicals in the European Union according to the European Chemicals Bureau ERA SEA Basis for decision Decision LCA ERA = Environmental Risk Assessment SEA = Socio-economic analysis LCA = Life Cycle Assessment

CO2 emissions [kg] / km highway Comparison between Lime, Cement & Wetfix (asphalt additive) from a life cycle perspective of a road CO2 emissions [kg] / km highway Hot mix Lime Cement Wetfix

Business value of the ERA and the ERA/LCA example Avoid unwanted surprises Are more toxicity tests and/or exposure measurements useful and necessary => reduced costs Comply with REACH ! (the new EU chemicals legislation) ERA/LCA combination: More complete picture of complex issues => increased credibility Provides a wider perspective on possible consequences of banning a substance from a market Is used for marketing today

Agenda Akzo Nobel company profile Practical use of eco-efficiency tools today Life Cycle Assessment from salt to cardboard Environmental Risk Assessment of an asphalt additive Eco-efficiency evaluation of colorants The DANTES project - an example of openness in communication between companies and the society

Applying the BASF eco-efficiency method on a study made by Akzo Nobel Eco-efficiency evaluation of an old and a new colorant used in water based paint Applying the BASF eco-efficiency method on a study made by Akzo Nobel

Environmental and economic impact LCA-based environmental impact Consumption of energy Consumption of resources Land use Emissions LCA-based environmental impact Consumption of energy Consumption of resources Land use Emissions Toxic potential Risk potential Weighting method According to “EPS” Weighting method According to BASF Economic impact Environmental costs Economic impact Price

Eco-efficiency results 0,0 Environmental impact (normalized) Old Colorant 1,0 New Colorant 2,0 1,2 1,0 0,8 Cost (normalized)

Other conclusions from an eco-efficiency study Environmental costs were found to be a relatively large part of the total costs of the studied products For the surfactants (used in the colorants) 4,5% – 6,5% of the sales price The environmental costs are higher than normally (~1%) reported to authorities and statistics

Agenda Akzo Nobel company profile Practical use of eco-efficiency tools today Life Cycle Assessment from salt to cardboard Environmental Risk Assessment of an asphalt additive Eco-efficiency evaluation of colorants The DANTES project - an example of openness in communication between companies and the society

DANTES www.dantes.info A demonstration project for sustainable development www.dantes.info

Project information Supported by the EU LIFE - Environment Programme Period: 2002 – 2005 (August 31) Partners: Akzo Nobel Surface Chemistry ABB Stora Enso Chalmers University of Technology

DANTES goals Demonstrate and evaluate environmental assessment and communication tools: Life Cycle Assessment (LCA) Life Cycle Costing (LCC) Environmental Risk Assessment (ERA) Environmental Product Declarations (EPD) Environmental Performance Indicators (EPI) Display strategies of how to use these tools in different functions within a company.

Strategies provide examples on how you can address different environmental sustainability issues within different parts of a company: Research & development Marketing Supply chain Production Environmental support

Environment Economy Engineering Communication is a smorgasbord! Environment Economy Life Cycle Cost Environmental Management Systems Eco-efficiency evaluation Environmental Risk Assessment CO2 emission trading Exposure scenarios LCA Supplier evaluation Key Performance Indicators Transportation and environment Environmental Product Declarations Sustainability issues in R&D Sustainability information on the WEB Energy efficiency Environmental education Engineering Communication

Between 3000 and 4000 visits per month! www.dantes.info – the DANTES project website Between 3000 and 4000 visits per month!