Evaluating the environmental performance of Product/Service-Systems. Louise Laumann Kjær

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1 Evaluating the environmental performance of Product/Service-Systems Louise Laumann Kjær

2 Background PhD project: Product/Service-System (PSS) design from an environmental perspective Research focus: How can Life Cycle Assessment (LCA) be applied to PSS? Challenges for using LCA on PSS: - Few quantified cases exists - LCA is mainly focused on products and technologies - PSS often introduces radical changes, which makes comparisons difficult 2 DTU Mechanical Engineering, Technical University of Denmark

3 What is PSS? Product(s) and service(s) combined in a system to deliver required user functionality Baines et al After-sale services Sharing and re-use platforms Result-delivery e.g. MAN PrimeServ e.g. Gobike Copenhagen e.g. Rolls Royce Power by the hour A move from traditional product sale towards sale of functions/performance 3 DTU Mechanical Engineering, Technical University of Denmark

4 Related concepts Sharing Performance Functional Service Circular Seen as a way to decouple economic growth and environmental burden through dematerialisation of society. However, that is not automatically so. 4 DTU Mechanical Engineering, Technical University of Denmark

5 Related concepts Sharing Performance Functional Service Circular 5 DTU Mechanical Engineering, Technical University of Denmark

6 Related concepts Sharing Performance Functional Service Circular 6 DTU Mechanical Engineering, Technical University of Denmark

7 Related concepts Sharing Performance Functional Service Circular? Environmental impact Economic value added Materials and production Service provision What is often neglected is that services are deeply anchored to manufacturing outputs, and growth in services sector also lifts, by necessity, manufacturing outputs. Suh, S., Are services better for climate change? Environ. Sci. Technol. 40, DTU Mechanical Engineering, Technical University of Denmark

8 The environmental potential of PSS Activity based Product-based Platform-based PSS strategy Operational support e.g. ecodriving Optimised result e.g. laundry service Product sharing e.g. leasing of tools Maintenance e.g. product repair, upgrade Take-back for reuse, re-man, recycle Sharing platform e.g. free-floating car-sharing system Avoided impact potential Direct resource efficiency Indirectly through shifts in product and service elements Optimised product utility through intensified use Reduced resource consumption in use-stage Increased product longevity Indirectly through shift in product-systems????? => need for quantified assessments e.g. by using LCA 8 DTU Mechanical Engineering, Technical University of Denmark

9 Laundry service Avoided impacts: - Saved energy during washing (efficiency) -. 8 kg 100 kg Savings (net avoided impacts) Induced impacts: - Transport to and from laundry - (more) drying of clothes - Decreased lifetime of clothes? - Baseline PSS 9 DTU Mechanical Engineering, Technical University of Denmark

10 Bike-sharing system Car City-bike Bike City-bike Walking City-bike Metro/ bus? %? %? %? % City-bike 10 DTU Mechanical Engineering, Technical University of Denmark

11 Environmental assessment of PSS Dynamic and complex systems => makes the assessment challenging Need for: - Scenario approach - High tolerance on data preciseness in order to ensure completeness - Acceptance that not every consequence and rebound effect can be quantified => focus on the learnings, not only the numbers Det handler om at tælle for at kunne fortælle 11 DTU Mechanical Engineering, Technical University of Denmark

12 Thank you! Louise Laumann Kjær PhD Student Engineering Design & Product Development DTU Mechanical Engineering 12 DTU Mechanical Engineering, Technical University of Denmark

13 Backup 13 DTU Mechanical Engineering, Technical University of Denmark

14 Hull cleaning 14 DTU Mechanical Engineering, Technical University of Denmark

15 Hull cleaning Avoided impacts: Reduced fuel consumption Savings (net avoided impacts) Avoided impacts Induced impacts Induced impacts: Impacts from the service (materials and energy used) + Potential sea water pollution. 15 DTU Mechanical Engineering, Technical University of Denmark

16 PSS and Circular Economy 16 DTU Mechanical Engineering, Technical University of Denmark

17 Assessment requirements - Broad scope + broad functional unit that represents the true value and capture consequences - All sub-processes to fulfil the function needs to be included (also from services, which have indirect (supply chain embedded) impacts) - Consider (not necessarily quantify) rebound effects (due to changes in cost, time, space, technology) Challenge: dynamic and complex - Scenario approach - High tolerance on data preciseness in order to ensure completeness - Accept that not every consequence and rebound can be quantified => focus on the learnings more than the numbers 17 DTU Mechanical Engineering, Technical University of Denmark

18 Environmental impact assessment Savings = Avoided impacts induced impacts rebound effects Rebound effects Avoided impacts Induced impacts Baseline PSS Savings 18 DTU Mechanical Engineering, Technical University of Denmark