Contact: Structural Policy Division, Mr. Marcos Bonturi, tel: ; fax: ;

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1 For Official Use DSTI/IND(2008)40 DSTI/IND(2008)40 For Official Use Organisation de Coopération et de Développement Économiques Organisation for Economic Co-operation and Development 25-Nov-2008 English text only DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY COMMITTEE ON INDUSTRY, INNOVATION AND ENTREPRENEURSHIP PROJECT ON SUSTAINABLE MANUFACTURING AND ECO-INNOVATION (Presentation by Tomoo Machiba and Karsten Olsen, Structural Policy Division, Directorate for Science, Technology and Industry, OECD) Meeting held at the OECD Headquarters in Paris on October 2008 This Powerpoint presentation was made under item 10 a) "Sustainable manufacturing and eco-innovation" of the CIIE meeting. Contact: Structural Policy Division, Mr. Marcos Bonturi, tel: ; fax: ; marcos.bonturi@oecd.org English text only JT Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format

2 OECD/CIIE Project on Sustainable Manufacturing & Ecoinnovation Progress report 31 October 2008 Tomoo Machiba & Karsten Olsen Overview of the 2008 project Apr Apr Common Pillar Identify the needs for OECD work Paper Conference Focus groups AEG & CIIE discussion & beyond Project Phase 2 Sustainable manufacturing & Eco-innovation May 2010 Innovation Strategy 2

3 Contents of the 2008 project Review & framework paper (5-part) 1. A common analytical framework: (2008)16 2. Examples of eco-innovation 3. Review of indicator sets: (2008)17 4. Review of governmental policies 5. Measuring eco-innovation Conference on Sustainable Manufacturing September, Rochester, NY Focus group meetings US (Rochester) & Europe (Brussels) AEG: 2 meetings + web-forum Business Questionnaire Government Questionnaire: (2008)18 Contents of the 2008 project Review & framework paper (5-part) 1. A common analytical framework: (2008)16 2. Examples of eco-innovation 3. Review of indicator sets: (2008)17 4. Review of governmental policies 5. Measuring eco-innovation Conference on Sustainable Manufacturing September, Rochester, NY Focus group meetings US (Rochester) & Europe (Brussels) AEG: 2 meetings + web-forum Business Questionnaire Government Questionnaire: (2008)18 3

4 Indicator questions 1. What aspects to measure? depending on company needs and sector diversity 2. How to measure? technical issues; many guides available 3.Where to measure? How to combine and communicate indicators for analysing manufacturing systems and benchmarking? Categories of Indicators Individual indicators Key performance indicators (KPIs) Composite indices Material flow analysis (MFA) Environmental accounting Eco-efficiency indicators Lifecycle assessment (LCA) indicators Reporting indicators Socially responsible investment (SRI) indices 4

5 Criteria for indicator analysis 1. Comparability for external benchmarking 2. Applicability for SMEs 3. Usefulness for management decisionmaking 4. Effectiveness for operational improvement 5. Possibility for data aggregation & standardisation 6. Effectiveness for finding innovative products & solutions Summary of analysis Compar ability SMEs Decision -making Operation Aggregat ion Innovation Individual indicators Key performance indicators Composite indices Material flow analysis Environmental accounting Eco-efficiency indicators LCA indicators Sustainability reporting indicators SRI Indices 5

6 Conclusions of the analysis Diverse and original indicators lack of common understanding and comparability No ideal single indicator set possibility for combination (e.g. MFA, LCA & accounting) Separation between those used for operations and for decision-making Ecoefficiency could address both SMEs need steps to develop indicators Need for system-wide indicators beyond product lifecycle Feedback from stakeholders (questionnaire, focus groups & AEG) Individual data compilation & KPIs are the most widely used data LCA & MFA are considered highly useful Environmental valuation techniques can also be useful for rational investment No unique set of indicators used by all Usefulness depends on contexts Harmonisation and clarification of existing indicators is considered as desirable 6

7 Next steps until April 2009 Completion of remaining 3 parts of the framework and review paper Synthesis report Identification of Phase 2 projects through AEG online discussions Focus group meetings in Brussels November Government questionnaire on ecoinnovation policies: (2008)18 Deadline: 28 November Your participation is welcome! 1. Join AEG web-forum! 2. Co-ordinate questionnaire response! 3. Recommend focus group participants! 7

8 Contents of the 2008 project Review & framework paper (5-part) 1. A common analytical framework: (2008)16 2. Examples of eco-innovation 3. Review of indicator sets: (2008)17 4. Review of governmental policies 5. Measuring eco-innovation Conference on Sustainable Manufacturing September, Rochester, NY Focus group meetings: electronics & auto US (Rochester) & Europe (Brussels) AEG: 2 meetings + web-forum Business Questionnaire Government Questionnaire: (2008)18 Overview 1. Eco-innovation Categorisation of eco-innovation 2. Sustainable manufacturing Evolution of sustainable manufacturing 3. Building a common framework Integration of sustainable manufacturing and eco-innovation 8

9 Eco-innovation What is eco-innovation? - it is related to conventional understandings of innovation - but can be distinguished by its specific direction; and its emphasis on social and institutional innovation - and is determined by its improvement in environmental performance relative to alternatives Eco-innovation How can we characterise eco-innovation? Where does the change occur? How does the change occur? What is the effect of the change? TARGET Products Processes Marketing Organisations Institutions MECHANISM Modifications Re-design Alternatives Creations IMPACT Beneficial environmental and/or social effects 9

10 Eco-innovation Social Institutional TARGETS Institutions Organisations & Marketing methods multistakeh change from cars to bicycle older Primarily non-technological label change sales of printing services Higher potential environmental benefits Processes & Products filtering and catalysts Primarily transport technological change routes develop dissolving packaging Modification Re-design Alternatives Creation MECHANISMS Sustainable manufacturing Pollution control Cleaner Ecoefficiency Lifecycle thinking Closed-loop Industrial ecology Treat Implementation of non-essential technologies End-of-pipe solutions Materials Production Waste Natural environment Products 10

11 Sustainable manufacturing Pollution control Cleaner Ecoefficiency Lifecycle thinking Closed-loop Industrial ecology Treat Prevent Products and process modification Process optimisation; Lower resource input & output Materials Extraction Production Housekeeping Optimise / substitute New technology New design Products Disposal Substitution of materials Natural environment Sustainable manufacturing Pollution control Cleaner Ecoefficiency Lifecycle thinking Closed-loop Industrial ecology Treat Prevent Manage Systematic environmental management Environmental strategies/monitoring Environmental Management Systems Plan Review & improve Implement Monitor & check 11

12 Sustainable manufacturing Pollution control Cleaner Ecoefficiency Lifecycle thinking Closed-loop Industrial ecology Treat Prevent Manage Expand Extending environmental responsibility Green supply chain management Corporate social responsibility Materials processing Extraction Production Packaging Distribution Use & maintain Recycling Natural environment Sustainable manufacturing Pollution control Cleaner Ecoefficiency Lifecycle thinking Closed-loop Industrial ecology Treat Prevent Manage Expand Reincarnate Restructuring of methods Minimising or eliminating virgin materials Materials sources Recovery Production Use & maintain Natural environment Packaging Distribution 12

13 DSTI/IND(2008)40 Sustainable manufacturing Pollution control Treat Cleaner Prevent Ecoefficiency Lifecycle thinking Closed-loop Industrial ecology Manage Expand Reincarnate Synergise Integrate systems of Environmental partnerships Eco-industrial parks A common framework Institutions TARGETS Organisations & Marketing methods Processes & Products Eco-parks Industrial ecology Closed loop Lifecycle PSS business Eco- thinking models efficiency Cleaner Carbon Product Capture and and process Pollution Storage efficiency control EMS Modification Re-design Alternatives MECHANISMS 13 Creation

14 Thank you! Visit our website: /sustainablemanufacturing Project queries: 14

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