Life-cycle Thinking from SME s Perspective

Transcription

1 Life-cycle Thinking from SME s Perspective Riina Antikainen Finnish Environment Institute (SYKE) Kokkola Material Week November 13, 2013

2 Contents Why SMEs are important? Life Cycle Thinking (LCT) and Life Cycle Assessment (LCA) SMEs and LCT Conclusions 2

3 Global challenge

4 Source: 4

5 Some examples Kääntöpöytä. Photo: Kirmo Kivelä / Dodo ry

6 Job creation Between , more than new jobs were born in SMEs in Finland SMEs are important as parts of value chain For example: 70% of the value chain of solar electricity system can be in Finland, even though the panel is produced in China Installation of solar electricity systems would create jobs worth of M to Finland (SITRA / Karoliina Auvinen ) 6

7 SMEs could benefit from Life Cycle Thinking (LCT) SMEs are among the key actors in the society transition towards green economy and job creation, by e.g. introducing new innovations and business models Life cycle thinking is tool to discover environmental hotspots understand potentials of environmental improvements identify cost saving potentials Lack of resources and know-how often prevent use of LCT in SMEs 7

8 Brief history of the environmental protection Out of sight, out of mind Dilution Focus on the consequences of treating the symtons Focus on technology improvements and on prevention Finding the sources Cleaner production Focus on management, dynamics EMS, image Focus on products services and processes Life Cycle Thinking 8

9 Jáchym Judl, What is Life Cycle Thinking? Life Cycle Thinking (LCT) seeks to identify possible improvements to goods and services in the form of lower environmental impacts and reduced use of resources across all life cycle stages. Focus not on one, but many environmental impacts. 9

10 Jáchym Judl, What is Life Cycle Assessment? Builds on LCT Holistic analytical method for quantifying environmental impacts of products, processes and services. Standardized method ISO 14040: Principles and framework ISO 14044: Requirements and guidelines Widely recognized, and used, method by both research and business communities. 10

11 Life Cycle of a Product

12 Jáchym Judl, LCA framework What and why we study? Data collection Environmental attributes Results Iterative adjustments Communication Improvements Source: Vink et al (Adapted from ISO) 12

13 Jáchym Judl, Life Cycle Impact Assessment Phase in which we assign environmental attributes to all material, energy, emission and waste flows. Source: ILCD 13

14 Cradle to grave (or to cradle) Mattila et al

15 Looks quite complicated! However, normally, few processed create most of the impacts Apple pressing Apple crushing Whizbang Cider Press Manual press Electric mill 3% of carbon footprint Electricity Cotton filter Wood frame Grinder Motor 29% of carbon footprint 80% of land use 17% of carbon footprint Note! Fig. includes only part of the processes. 52% chemical load (copper)

16 Often simplified LCA (= life cycle thinking) is enough to support eco-design and decision making Source: Antikainen & Seppälä, eds. 2013

17 Model for environmental improvements along the product chain Raw-material production 1. Set sustainability requirements and targets 2. Select subcontractors to meet the requirements 3. R&D cooperation with the subcontractors to solve joint enviromental challenges 4. Follow-up, reporting, continuous improvements Production Delivery Use Disposal 1. Meet environmental requirements set by clients 2. Inform about your product s environmental benefits 3. R&D cooperation with the competitors to solve joint environmental challenges 1.Control and minimize environmental impacts of delivery 2.Optimisation and design of transports 1. Follow the environmental requirements by consumers 2. Inform about your product s environmental benefits 3. R&D cooperation with the consumers to solve environmental challenges 1. Design and produce recyclable, re-usable or decomposable products 2. Manage waste and used products responsibly 3. Take care of customer s and consumer s waste (as applicable) Education of stakeholders Communication about the benefits R&D in the product chain (upstream and downstream) Ecodesign during the life cycle Source: Antikainen & Seppälä 2012, eds. 17

18 New consept being tested life cycle clinique Half day meeting with researchers and company representatives -> data collection Researchers do the assessment as desktop study Company receives report: - Current environmental footprint hotspots - Suggestions for improvements - What kind of benefits the product can bring elsewhre (positive footprint = handprint) Applicable for simple products / services.

19 Jáchym Judl, Added value of LCT for business Cost savings through optimization Competitive advantage Better understanding production system and its environmental hotspots ability to change something! Good conscience about its activities 19

20 Conclusions what is important Know your own product s life cycle impacts on general level Single actor cannot make all the improvements throughout the value chain Cooperation between actors is needed Key actors of the value chain have the best potential to improve the product chain environmental performance by requiring other actors to follow the sustainability principles Companies of different sizes and roles should follow life cycle thinking, but life cycle assesments are not necessary for all 20

21 Thank you! For more information: Julkaisu Elinkaarimenetelmät yrityksen päätöksenteon tukena Fig. Jáchym Judl 21