1. Day 5: Value Chain Activity – Product Design Global Business, Society and Ecology MIM 511/BA 548 Winter 2011 R. Scott Marshall Associate Dean, Graduate Programs and Research

2. Overview of Concepts 1.Eco-Design 2.Eco-Effectiveness 3.Bio-Mimicry 4.Eco-Efficiency 5.LEAN Manufacturing 6.EH&S and EMS ISO 14001 7.Closed Loop Systems 8.Life Cycle Analysis Design Measure Impact of Design and Manufacturing Operations & Supply Chain Design & Operations/SCM Type II Linear Value Chain Type III Closed Loop Value Chain

3. Type II Linear Value Chain  Environmental impact is related to business factors  Improving eco-efficiency means increasing product value or reducing environmental impact  Units and measurement methods are suggested Product or service value Eco-efficiency = Environmental influence Eco-Efficiency

4. Type II Linear Value Chain 1. Reduce Material Intensity of Goods and Services  Johnson & Johnson: Targeted 25% reduction in packaging by 2005 2. Reduce Energy Intensity (to produce and consume)  Whirlpool: Low energy refrigerators (Energy Star) 3. Reduce Toxic Dispersion  Novartis (Swiss life sciences company) combined insecticide with pheromones Eco-Efficiency

5. 4. Increase Recyclability  HP: printed circuit boards are refined to recover precious metals 5. Increase Durability (extending the useful life of products)  Ricoh: increase durability of copy machines (leased – so remain a revenue stream; not about products but about materials and energy) Eco-Efficiency Type II Linear Value Chain

6. “Doing more with less”  Industry interested because eco-efficiency means greater economic benefit.  Companies can (and have) easily adopted programs promoting eco-efficiency.  Based on Reduce, Reuse, Recycle, and Regulate. Lean Manufacturing Eco-Efficiency Type II Linear Value Chain

7. Type III Closed Loop Value Chain Eco-Effectiveness Central design principle of eco-effectiveness is: waste equals food (heard this before?) Instead of using only natural, biodegradable fibers like cotton for textile production (a pesticide-intensive agricultural process), why not use non- toxic synthetic fibers designed for perpetual recycling into new textile products? Instead of minimizing the consumption of energy generated from coal, oil, and nuclear plants, why not maximize energy availability using solar and wind sources? From ‘cradle-to-grave’ to ‘cradle-to-cradle’ – closed loop systems

8. To assist companies in (re)designing eco-effective products, Cradle to Cradle Design Protocol assesses materials used in products and production processes.  The four categories are: Green: Little or no risk. This chemical is acceptable for use in the desired application. Yellow: Low to moderate risk. This chemical is acceptable for use in the desired application until a green alternative is found. Orange: There is no indication that this is a high risk chemical for the desired application, but a complete assessment is not possible due to lack of information. Red: High risk. 'Red' chemicals (also sometimes referred to as 'X-list' chemicals) should be phased out as soon as possible. 'Red' chemicals include all known or suspected carcinogens, endocrine disruptors, mutagens, reproductive toxins, and teratogens. In addition, chemicals that do not meet other human health or environmental relevance criteria are 'red' chemicals. Type III Closed Loop Value Chain Eco-Effectiveness

9. Type III Closed Loop Value Chain Eco-Effectiveness Human Health Criteria  Carcinogenicity  Teratogenicity  Reproductive Toxicity  Mutagenicity  Endocrine Disruption  Acute Toxicity  Chronic Toxicity  Irritation of Skin/Mucous Membranes  Sensitization  Carrier Function or Other Relevant Data Environmental Relevance Criteria Algae Toxicity Bioaccumulation (log Kow) Climatic Relevance/Ozone Depletion Potential Content of Halogenated Organic Compounds (AOX) Daphnia Toxicity Fish Toxicity Heavy Metal Content Persistence/Biodegradation Toxicity to Soil Organisms (Bacteria and Worms)

10. Type III Closed Loop Value Chain Eco-Effective  Cradle-to-Cradle Product Composition  Biological Nutrients – renewable, biodegradable  Technological Nutrients – reusable Value Chain Structure  Inputs are from renewable or recycled resources  Outputs are reusable or biodegrable Product Design  Biological and Technological Nutrients are separable at end-of-use

11. Cradle-to-Cradle  MBDC’s certification MBDC’s certification  gDiapers – Cradle-to-Cradle Certified gDiapers – Cradle-to-Cradle Certified Type III Closed Loop Value Chain Eco-Effectiveness

12. Type III Closed Loop Value Chain Close Loop Systems From: Cleaner Production International LLC

13. Type III Closed Loop Value Chain Close Loop Systems Ricoh’s “Comet Circle”

14. Type III Closed Loop Value Chain Close Loop Systems From: Cleaner Production International LLC

15. Type III Closed Loop Value Chain Environmental Life Cycle Analysis Takes a holistic view of and measures environmental and social impacts from raw material extraction to final use/disposal.

16. Stages of LCA 1. Definition of Goals and Scope 2. Life Cycle Inventory Analysis: measure materials and energy used and environmental releases that arise along entire continuum of the product or process life cycle 3. Life Cycle Impact Assessment: examine actual and potential environmental and human health effects associated with use of resources and materials and with the environmental releases that result. 4. Life Cycle Improvement Assessment: systematically evaluate and implement opportunities to make environmental improvements based on previous assessments. Type III Closed Loop Value Chain Environmental Life Cycle Analysis

17. Type III Closed Loop Value Chain From the Institute for Lifecycle Environmental Assessment Environmental Life Cycle Analysis

18. Type III Closed Loop Value Chain Environmental Life Cycle Analysis

19. Type III Closed Loop Value Chain Environmental Life Cycle Analysis

20. Type III Closed Loop Value Chain Environmental Life Cycle Analysis

21. Type III Closed Loop Value Chain Hypothetical example of LCA impacts of Shoes A leather) and B (synthetic) Environmental Life Cycle Analysis

22. Type III Closed Loop Value Chain Social Life Cycle Analysis  An emerging concept…  Social Fingerprint Analysis? Social Fingerprint Analysis?

23. Cradle-to-gate: (a) energy footprints divided into fossil feedstock and energy-related CEDfossil; process contributions to (b) carbon footprints (GWP), and (c) environmental footprints (EI99 points). Published in: Annette Koehler; Caroline Wildbolz; Environ. Sci. Technol. 2009, 43, 8643-8651. DOI: 10.1021/es901236f Copyright © 2009 American Chemical Society

24. Cradle-to-grave analysis: life-cycle carbon footprints (a) and environmental footprints (b) shown as relative contributions of the life-cycle phases to total product life-cycle impacts (per individual functional unit); detailed analysis of soap products: (c) life-cycle carbon footprints differentiated by subprocesses modeled and (d) environmental footprints differentiated by impact categories. Published in: Annette Koehler; Caroline Wildbolz; Environ. Sci. Technol. 2009, 43, 8643-8651. DOI: 10.1021/es901236f Copyright © 2009 American Chemical Society

25. In-Class Exercise 1.Find someone who you have not worked with before. 2.Identify two products types that you’ve both used before. 3.Discuss what you believe to be the key contributors to these products’ environmental AND social impacts – from ‘cradle’ to ‘gate’ to ‘end of use’

26. Exercise 4: Environmental Footprint Analysis Combine your course team with one additional team. Work together to complete all elements of the LCA exercise for Method. Once completed, share the challenges with the rest of your peers in the class. Submit the final exercise as two teams, with all names on the exercise and on the equal contribution form by mid-day tomorrow.

27. Summary of Today Environmental Life Cycle Assessment tools becoming more advanced. E-LCA Tools developed by NGOs, by companies, by governments. Social Life Cycle Assessment tools in development – an emerging opportunity/challenge. Household products are in the early stages of addressing toxicity and packaging issues.