Product Sustainability. Bombay Chamber of Commerce and Industry (BCCI) November 2013

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1 Product Sustainability Bombay Chamber of Commerce and Industry (BCCI) November 2013

2 Contents Introduction Product Sustainability Trends How to Achieve Product Sustainability Initiatives on Product Sustainability 1

3 1. Introduction

4 An individual product may look harmless enough, but the damage it causes happens elsewhere, often out of sight and mind, hidden from the consumers and often from the designers and producers as well. 3

5 You may have heard / used these words eco-design fair trade green product 5 star rated chlorine free environment friendly bondedlabour free low VOC recyclable organic biodegradable ethically sourced environmentally preferred certifications / labels CFC free design for environment 4

6 What are the common questions? What is a sustainable product? How do I prove that my product is sustainable? Which approach should I choose? And if I choose one, will it be accepted by everyone? Do I have to prove my products as sustainable, in different ways to different stakeholders? Will consumers and business partners understand my claim of sustainable product? 5

7 Some definitions Initiatives that measure, disclose and improve the environmental and social impacts of products across their life cycle, from raw materials and manufacture through to use and disposal. -Verdantix The term 'sustainable product' can be subjective and include a wide variety of economic, social and environmental considerations. One broad definition of a 'sustainable product' is an item or service that minimises its impact on the environment at each phase of its life cycle. - New South Wales Government 6

8 What s unsustainable? A Computer About a quarter of a PC is plastic, mostly the casing. It s polycarbonate, made from phosgene, which was used as poison gas in the first world war, and Bisphenol A, an endocrine disruptor. 7

9 Unsustainable products? A Chair The steel for the frame is made from ore that is sourced possibly in an illegal manner. The steel is chrome-plated, mostly using hexavalent chromium. The leather used is an outcome of a tanning process involving formaldehyde, coal tar derivatives, cyanide or chromium. 8

10 Unsustainable products? A T-shirt The manufacture of an average size T-shirt involves use of 150g of chemical fertilisers and pesticides. Cotton accounts for 25% world s insecticide use. Many garments are sewn together by part-time workers including children, who are paid less than the legal minimum wage, are forced to work long hours and treated inhumanly. 9

11 Common adapter Sustainable? Saves 82,000 tons of e-waste per year Saves at least 13.6 million tonnes of CO 2 emissions annually 10

12 Bahrain World Trade Center Sustainable? Traditional Design Wind turbines in between the towers a great example of out-of-the-box thinking. 11

13 Electric car Sustainable? Traditional gasoline Car Tesla Electric Car 220 miles on a charge 0 to 60 in 3.9 seconds Honda FC Hydrogen Car 12

14 2. Product Sustainability Trends

15 Importance Of Improvement In Sustainable Product/Service Innovation In

16 Budget Growth For Sustainable Product/Service Innovation In

17 3. How to Achieve Product Sustainability

18 Life Cycle Management Life cycle management 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. 17

19 Life Cycle Management It is an integrated concept for managing the total life cycle of goods and services towards more sustainable production and consumption. It uses various procedural and analytical tools and applications and integrates economic, social and environmental aspects into an institutional context. 18

20 Product Service System Product Service Systems (PSS): is a way to develop a marketable mix of products and services that are jointly capable of fulfilling a consumer s needs - with less environmental and social impact. It aims towards creating win-win solutions and de-coupling economic growth from environmental and social degradation. 19

21 Closed Loop Approach Companies are increasingly moving from linear production models to closed-loop value chains. This means that a by-product from one process becomes the raw material for another process. There are different ways of closing the loop: The simplest closed loop is re-use, where a product is re-used without need for remanufacturing. When recovery and material recycling is needed, then closed loop recycling involves taking the product or material back for use in the same application. A wider loop occurs where used materials are recovered for subsequent use in a different application. 20

22 Available Tools ISO 14044: Environmental management - Life cycle assessment Requirements and guidelines ISO 14067: Carbon footprint of products ILCD: International Reference Life Cycle Data System Ecological Footprint Product and supply chain standards, Greenhouse Gas Protocol (WRI/ WBCSD) Specification for the assessment of the life cycle greenhouse gas emissions of goods and services British Standard for Carbon Footprinting BSI PAS 2050 Material flow accounting Function based approach Design for Environment Design for Disassembly and many more 21

23 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. LCA is defined by a series of ISO standards (ISO and 14044, etc.). Assessment options range in complexity from a Screening LCA, which can be used to identify hotspots and areas for improvement, to a full ISO-compliant LCA. 22

24 Life Cycle Assessment Application 23

25 Life Cycle Assessment Goal and scope definition Defining the functional unit for the product or service, i.e. the service delivered to society and the boundaries of the system that are included. Life Cycle Inventory (LCI) Identifying all of the material and energy inputs and outputs associated with delivering the functional unit. Life Cycle Impact Assessment (LCIA) Evaluating the significance of environmental impacts using the LCI results. In general, this process involves associating inventory data with specific environmental impact categories and category indicators. 24

26 Life Cycle Assessment 25

27 Life Cycle Assessment Classification and Characterisation Normalisation and Weighting Inventory table CO 2 CH 4 CFC Climate Change Data quality analysis SO 2 NO x NH Acidification... Environmental Index 26

28 Life Cycle Assessment The LCIA process consists of three mandatory stages: Selection of impact categories, category indicators and characterisation models; Classification: assignment of LCI results to the selected impact categories; Characterisation: calculation of category indicator results. Interpretation In this phase, the findings from the inventory analysis and the impact assessment are considered together. Peer review Any LCA result that is communicated to an external audience should be subjected to a peer review. 27

29 Life Cycle Assessment The default environmental impact categories covered by the EU Product Environmental Footprint include: Climate change Ozone depletion Human toxicity (cancer effects) Human toxicity (non-cancer effects) Particulate matter / respiratory inorganics Ionising radiation, (human health) Photochemical Ozone formation Acidification Eutrophication (terrestrial) Eutrophication (aquatic) Ecotoxicity (aquatic, freshwater) Land use Resource depletion (water) Resource depletion (mineral, fossil and renewable) 28

30 Approach to Product Sustainability Encourage life cycle thinking: Conducting a full Life Cycle Assessment (LCA) can be a time consuming and expensive business, but taking a life cycle approach by considering all stages of your product or service s life cycle can lead to new insights. There are many LCA studies available in the public domain that can help you get started in life cycle thinking. Engage with your customers and suppliers: Understand your customers needs and what your suppliers can offer in terms of innovative products. Understand exactly where your product or service adds value: How can you maximise this value? Is there a way you could deliver that benefit in a different way, using fewer materials or less energy? Identify hotspots: Know where the environmental / social hotspots are for your company, your products or your services. Do the major impacts arise from your operations, your supply chain or from the use of your products? Knowing where the hotspots are will help you identify strategies to reduce them. 29

31 Approach to Product Sustainability Turn a waste into a resource: Identify all of the materials that leave your operations as waste, and look to see which of them may be of value in another process. Taking a systematic approach may identify materials that can be sold as a secondary raw material, turning a waste into a resource, and a cost into a revenue stream. Keep up to date with upcoming policy and regulatory requirements: Anticipate new policies and regulations, to shape your future business strategy. Use sound science: in your business decisions and in your advocacy efforts. Ensure transparency: By providing credible information on data used to estimate the life cycle of your product, you will gain confidence from your stakeholders. 30

32 4. Initiatives on Product Sustainability

33 Environmental Product Declaration 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 14025) - 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 General Guidelines for Environmental Claims and Declarations. 32

34 Environmental Product Declaration 33

35 Environmental Product Declaration Topic Environmental Socio-economic Sustainability Single category Multi category All products Product type 34

36 National Voluntary Guidelines and Product Sustainability Businesses should assure safety and optimal resource use over the life-cycle of the product from design to disposal and ensure that everyone connected with it- designers, producers, value chain members, customers and recyclers are aware of their responsibilities. Businesses should raise the consumer's awareness of their rights through education, product labelling, appropriate and helpful marketing communication, full details of contents and composition and promotion of safe usage and disposal of their products and services. 35

37 National Voluntary Guidelines and Product Sustainability In designing the product, businesses should ensure that the manufacturing processes and technologies required to produce it are resource efficient and sustainable. Businesses should regularly review and improve upon the process of new technology development, deployment and commercialization, incorporating social, ethical, and environmental considerations. Businesses should recognize and respect the rights of people who may be owners of traditional knowledge, and other forms of intellectual property. 36

38 QUESTIONS???? Anand Joshi