A Life Cycle Assessment (LCA) for Cotton

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1 A Life Cycle Assessment (LCA) for Cotton The Significance to the Global Cotton Industry J. Berrye Worsham President & CEO Cotton Incorporated Distinguished delegates, observers, and ICAC staff it is an honor and pleasure to present at the 2012 plenary meeting. My topic is A Life Cycle Assessment for Cotton: The Significance to the Global Cotton Industry. My brief remarks will have four segments: (1) sustainability directions for brands and retailers; (2) the highlights of the LCA; (3) leveraging the LCA with other data sources and (4); where do we go from here. I want to stress that the LCA is not just a U.S. analysis; it is the most comprehensive global assessment ever completed for cotton fiber. However, I will reference some aspects of sustainability for U.S. cotton to give you some idea of how sustainability information is being used. Before we go into the LCA, it is important for us to understand what our customers (the brands and retailers) are doing. Brands on the leading edge of sustainability are beginning to report the environmental impact of some of the major products that they produce or sell. This is directly from the website of Levi s showing detailed environmental information of their 501 jean from energy to water. The numbers may not mean much to a consumer, but the information is being provided nonetheless. An even more detailed example is from Puma, who has recently developed the first environmental profit and loss statement by a company. Through detailed analysis, they have assessed their overall environmental footprint that translates into a monetary estimate from this impact. In their report, which is 28 pages long, they estimate their monetary footprint at about $200 million U.S. dollars for 2010, and that 57% of the impact is in the raw materials stage. There are countless organizations now engaged in measuring sustainability. Important for our industry is the Sustainable Apparel Coalition, which has recently developed a sustainability index (Higg Index) for a product, brand or facility to use. It is a composite score of five measures: (1) raw materials; (2) manufacturing; (3) packaging; (4) end of life and (5) product care. A number of important sellers of cotton products are part of this coalition. I will come back to this later in my presentation. There is an organization called Field to Market, which is charged with measuring U.S. agriculture s environmental footprint over time, with the ultimate goal of assisting agriculture in accelerating the improvements going forward. The members include agriculture, government, NGOs and industry. These are but a few examples. So why is this important for cotton? In simplistic terms, brands and retailers are now using environmental considerations along with prices and consumer preferences in their decision- making

2 process for product development. And the LCA is the common language of objective environmental assessments. So what is an LCA? The LCA is the total environmental impact from a representative product from the raw materials used as inputs, to manufacturing, use and product disposal. Emissions and waste products are also factored in an LCA. Our objectives were to build the most credible global data set for cotton; develop a benchmark for cotton to measure future improvement; identify future research needs and assist the industry in developing their own individual LCAs for cotton products. With or without us, LCAs will be done by industry. We have to make sure that the information is credible, otherwise it often hurts cotton. Our LCA can be broken down into three main functional categories: the impact at the farm level, the impact in textile manufacturing and lastly in the consumer use stage which includes cut/sew and product disposal. A little more detail shows that we are looking at agricultural production in three key producing countries (China, U.S. and India), and we are looking at the manufacturing of two types of cotton garments (knit shirt and woven pant). As you will see, the manufacturing phase covers four regions of the world. It was critical to us that we had the best and most comprehensive data possible. We had international LCA experts; Cotton Incorporated s staff of scientists; we had an independent review panel and the end result was the first ISO compliant fiber LCA. For U.S. production data, we relied on public data collected by USDA; our own comprehensive surveys; interviews with specialists and fact checks with U.S. growers in four regions. In India, we used a combination of public data and interviews with Indian cotton scientists. In China, a similar approach was used. On the textile processing side, we worked with 16 mills providing data representing four regions of the world. We augmented this information with additional data from machinery manufacturers. At the consumer phase, we only have data for the U.S. It comes from a variety of sources including extensive consumer surveys by Cotton Incorporated and the Department of Energy. It is this level of detail, complexity and peer review that resulted in the project taking more than 2 years to complete. The data from the LCA is overwhelming and complex. There are thousands of pieces of information. So for this presentation, I only want to cover a few key findings out of many. Carbon emissions is certainly a key global environmental concern so let s look at the relative impact of the three major segments to carbon emissions for a typical cotton garment a batch- dyed knit shirt. In this example, agriculture s relative contribution (green bar) is minimal compared to textile s (purple) and the consumer sector (light blue). In fact, because of the impacts of washing and drying, the consumer sector is more than half of the impact.

3 Now let s add a few more: energy, nutrient potential and water consumed. Agriculture s relative footprint gets a little higher in energy and becomes dominant when water is the consideration. Our LCA actually measures 10 different impacts. Some of these measures are well developed such as energy, and green- house gas potential, and others have major theoretical issues such as toxicity. All the results are included in our report although we don t have time to discuss details today. Now let s look only at the distribution of agricultural production s impact on energy. In this illustration, fertilizer production is the largest contributor to agriculture s energy footprint at 33%. Ginning is second at 25% followed by irrigation 19% and field fuel use at 17%. The important point here is that more efficient nitrogen utilization will be critical to reduce the energy footprint of cotton production. This is a more detailed slide showing carbon, energy, nutrient loading and water. The big blue area is irrigation which is 100% of the water use. The orange is fertilizer production which is big for energy and carbon emissions and the light yellow is field emissions which dominates the impact of nutrient loading. In the textile manufacturing process, we examined batch dyed knits, yarn dyed knits and continuous dyed wovens. The first chart shows the distribution of batch dyed knits. The large blue area is the energy from spinning which is about ½ of the overall energy impact. It was higher than expected. When we add the other two examples, it doesn t change much spinning is still has a relatively large energy footprint in the textile manufacturing stage, as does dyeing. I won t cover much on the consumer side except to say, that the results are very sensitive to the machinery used, load size and the energy efficiency ratings of the machines. For example, the difference between a baseline wash (warm water, average loads, & standard equipment) and a cold- wash was a reduction of 34% in energy. An energy- star- rated machine could mean as much as 36% less energy. Larger loads make a difference but not as much as the other two. As a reminder, this information was just from the U.S. It is probably somewhat representative of the industrial countries, but not as much for the developing world. How is this being used? As I mentioned earlier, the LCA is the language of environmental metrics. Our LCA has been integrated into some of these measures on cotton. For example, the Sustainable Apparel Coalition recently published their Higg Index findings for the raw fiber component. There are 13 different measures that roll up into one score. Don t worry about reading the numbers. This is only to show you the complexity. When the numbers are summarized, cotton generally ranked among the higher fibers higher than all of our major competitors. In this measure, higher is better. I don t necessarily agree with a single score for any fiber, but this is an example of what may be coming. We have compared cotton s LCA with information available for other major textile fibers. No fiber is a clear winner all have relative strengths and weaknesses. For cotton, we do well in energy, greenhouse gas emissions but are weaker on water use and the way toxicity is measured.

4 The key going forward is continuous improvement. Earlier I referenced Field to Market as an organization that is measuring the changing footprint for U.S. agriculture. This shrinking spider diagram shows how U.S. cotton s footprint has contracted since the early 1980s in terms of greenhouse gas, energy, irrigation water, soil erosion and land use. We can say this because of the massive amounts of information that has been collected over the years - - mainly by USDA, EPA and other federal agencies. I recognize that not all countries can have this same degree of information, but I urge countries to begin the process of benchmarking. It won t be long before you will be asked by your customers to demonstrate progress. These are the specific numbers behind the shrinking graph that you saw previously. Cotton Incorporated will be staying engaged with the brands/retailers, sustainability organizations and other industry leaders to provide factual information on cotton, and correct the commonly used misstatements about cotton. Perhaps most important, we are using the information in our research initiatives going forward. In agricultural research, we will continue to highlight water use and nitrogen- use efficiency as major efforts. In textile research, it will be in reducing water, energy and the use of safer chemistry in cotton processing. And we have to continue to work with the LCA community in improving the methodology for some of these important metrics. In conclusion, improvements in sustainability metrics will be crucial to the future demand for cotton. Cotton Incorporated will continue to be a leader in this area, in research, application and communication.

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8 % =-N$21-,&-.9*" '1-+$;&29A1-+" C&*9AN&" :2$)&+" '1-+B,&2"R9+.&+" <":2&%&2&-)&+" B;/,8:%C%D(0/*3(;:% PB.B2&":21;B)."E@&)$O)9A1-+" `5161,%1;%[0'(;%U*4(;La% What is Life Cycle Assessment (LCA)? b! Environmental footprint of a product from raw material acquisition through consumer use and disposal Raw Material Manufacturing INPUTS Water Energy Chemicals COTTON LIFE CYCLE ASSESSMENT OUTPUT S Emissions Wastes Co-products Disposal Consumer Use _%

9 Objectives! Build credible, well represented, and well documented environmental-data set for cotton (LCI)! Develop a benchmark to measure future improvement! Identify research needs for future improvement! Assist industry in developing their LCAs for cotton products Three Main Components of the LCA Farm Textile Mfr. Consumer c%

10 LCA System Boundaries and Functional Units Data Quality and Integrity! Data reviewed by:! Cotton Incorporated Staff! PE Americas/PE International! 3 rd Party Expert Critical Review Panel! Verified with farmers and mills! ISO Compliant Process - ISO 14044! Carbon Trust Certification Z%

11 Data Collection: U.S.! USDA! National Agricultural Statistics Service! Economic Research Service! Natural Resource Conservation Service! Cotton Incorporated s Natural Resource Survey! State Extension Specialists Interviews! Final check using data from minimum of 2-farms per region Data Collection: India! Agricultural Statistics at a Glance*! The Cotton Corporation of India! Interviews with Indian Cotton Scientists! Literature - includes 2005 LCA study *publication of the Economics and Statistics, Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India d%

12 Data Collection: China! China Statistical Yearbook! Shandong Cotton Research Center! Scientific Literature! PE-International! Global Data Sets Textile Production Data Collection b! D(N;(:(,0:%/NN;1f*K/0(3<%ZZg%1A%V,*0%/,8%c$g%1A%I1H(,% I1;38%A/4;*.%K/,9A/.09;*,+%*,%"!!h^% e%

13 Consumer Use Methodology DATA SOURCES:! Cotton Incorporated s Lifestyle Monitor Survey!! Department of Energy Energy Star Savings Calculator 2010 DOE Energy Conservation Program for Consumer Products (75 Federal Register 182)! AATCC standards (2011) Technical Manual TM and Monograph on Standardization of Home Laundry Test Conditions. DATA PROVIDED:! Consumer laundering behavior!!!! Consumer end-of-life behavior and garment lifetime W/D load capacity W/D water and energy consumption Comparison of energy star and conventional W/D W/D = washer and dryer A Few High-Level Results h%

14 Contribution by Major Segment Agricultural Production Textile Manufacturing Cut/Sew, Use, Disposal #'!"C&+B*.+"%12"MSLLL"QD"T-$."E8$2.+" 100% /!N&29D&"H+&"E)&-92$1S"'29;*&".1"U29N&0" 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Carbon LCA RESULTS FOR 1,000 KG BATCH DYED KNIT SHIRT - CRADLE TO GRAVE Contribution by Major Segment Agricultural Production Textile Manufacturing Cut/Sew, Use, Disposal #'!"C&+B*.+"%12"MSLLL"QD"T-$."E8$2.+" 100% /!N&29D&"H+&"E)&-92$1S"'29;*&".1"U29N&0" 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Carbon Energy Used Nutrient Potential Water Consumed LCA RESULTS FOR 1,000 KG BATCH DYED KNIT SHIRT - CRADLE TO GRAVE $!%

15 LCA Impact Definitions Abbreviation Technical Term Example Impact AP Acidification Potential Acid rain EP Eutrophication Potential Nutrient loading to stream GWP Global Warming Potential Green house gas emitted ODP POCP Ozone Depletion Potential Photochemical Ozone Creation Potential Ozone hole over polar ice caps Smog PED Primary Energy Demand Electricity & fuel needed WU Water Used (Gross Volume) Water used in washer WC Water Consumed (Net Volume) Water evaporated in dryer ETP Ecotoxicity Potential Animal health HTP Human Toxicity Potential Human health Agriculture s Energy Footprint Transport 3% Seed Production 1% Field Fuel Use 17% Fertilizer Production 33% X10%:'1I,%i%M.;(8*0j%A1;%% Pesticide! 5;1N%;10/@1,%k$!g%% Production 1A%N1:*@H(%(K*::*1,:% 2% Post Harvest 25% Irrigation 19% $$%

16 Summary of Agricultural Impact 100% 80% 60% 40% 20% 0% Transport Tractor Operations Seeds Post Harvest Pesticide Production Irrigation Fertilizer Production Field Emissions Reference System Crop Rotation -20% Carbon Energy Nutrient Water Consumed Textile Mfr. Energy Footprint (Batch-Dyed Knits) Finishing 5% Knitting 3% Transport Compaction 0% 0% 6% Batch Dyeing 34% Opening- Spinning 52% $"%

17 Energy Demand by Textile Process 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Batch Dyed Yarn Dyed Continuous Dyed KNITS WOVENS Open - Spinning Yarn Dyeing Beam / Slash / Dry Knitting Weaving Batch Dyeing Continuous Dyeing Finishing Compaction Sanforizing Transport Sensitivity Analysis of Consumer Behavior Choices PRIMARY ENERGY DEMAND (Warm, Conventional, Medium Load)! Cold Wash! Energy Star Appliance! Extra Large Load -5% All relative to base of:! Warm water use! Conventional Appliance! Medium load -34% -36% Cold Wash Energy Star Wash Extra Large Load $T%

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19 51KN1:*0(%D/I%P/0(;*/3%).1;(% Material Name TOTAL Score Polypropylene!"#$ Polypropylene fabric!%#" Silk fabric!&#' Cotton fabric %"#( Lyocell fabric %)#! Hemp fabric %)#$ Linen fabric %!#' Polyester fabric %!#! Modal fabric %$#! Jute fabric $*#" Wool fabric $*#! Rayon-viscose fabric, bamboo $(#* Nylon-6,6 fabric $(#" Rayon-viscose fabric, wood $(#& Nylon-6 fabric $"#! W$D8&2"$+"F&3&25" 5161,%;/,V:%'*+'(;%0'/,% 0'(%G*++%7,8(f% %12"H5E5"'131-" $c%

20 #9-;"H+&" E1$*"#1++" 79.&2" =-&2D(" UWU" YL]" ^_]" `a]" Y^]" YL]" How will we use this information?! Communicate with industry regarding new benchmark for cotton! Enable industry to improve footprints through individual client LCAs COTTON LIFE CYCLE ASSESSMENT! Identify new areas of research! Validate and contribute to current research $Z%

21 Major Research Directives! Continue to increase water and nitrogen use efficiencies! Reduce energy & water in textile processing! Improve LCI toxicity methodology:! Further analysis of pesticide models! Work with the USETox community to improve pesticide data! Fill data gaps in foreign cotton production:! India! China! Other Countries!"#$%&"'()*&"!++&++,&-."/#'!0"%12"'131-" &'(%)*+,*-./,.(%01%0'(%2314/3%5161,%7,89:0;<% " =;(:(,0(8%4<>% 45"6&22(&"712+89," :2&+$;&-."<"'=>" $d%

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