Using Comprehensive Life Cycle Assessment to Measure Environmental Performance

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1 Using Comprehensive Life Cycle Assessment to Measure Environmental Performance Tobias Schultz, Manager of Environmental Sustainability Services SCS Global Services 1

2 What Is Life Cycle Assessment (LCA)? LCA is a tool to assess environmental impacts of products, commodities, and organizations. Can be used to identify supply chain hot spots and compare environmental performance. Having complete, accurate, and credible LCA is crucial. Scientific Certification SCS Global Systems Services 2

3 Comprehensive Life Cycle Assessment Metrics are Being Standardized US Standard American National Standards Institute Process Status: LCA metrics are part of a final draft American Standard (LEO SCS 002). International Standards ISO TC 207 Experts on the US negotiating delegation submitted the N505 ballot, proposing that LCA metrics should be included in ISO standards. Scientific Certification SCS Global Systems Services 3

4 US Expert Proposal in the N505 Ballot N505 Ballot Proposed revisions to ISO (major LCA standard) in N505 ballot: 1. Include a complete set of impact categories in LCA. 2. Framework to establish metrics. 3. Guidance for streamlining LCA using an iterative approach. N505 Background Document 4. Provide strict definition for environmental sustainability. Scientific Certification SCS Global Systems Services 4

5 N505: How A Comprehensive Set of Impacts Were Identified Investigated Environmental Regulations. Consultation with ENGOs and Other Stakeholders. Read Peer Reviewed Scientific Literature. Scientific Certification SCS Global Systems Services 5

6 Global Impacts Resulting from Human Activities (From Table 1 of N505 Background Document) Depletion of Natural Resources Impacts to Terrestrial and Fresh Water Ecosystems Impacts to Ocean Ecosystems Impacts to Global and Regional Climate Systems Impacts to Human Health Scientific Certification SCS Global Systems Services 6

7 Using the Comprehensive LCA Metrics to Understand Environmental Performance A Case Example Scientific Certification SCS Global Systems Services 7

8 Comparing Environmental Performance: Refrigerator vs. Refrigerator SCS worked with a large retailer who was interested in comparing environmental performance of a single refrigerator model manufactured by two different suppliers: Supplier A is located in Shanghai, China. Supplier B is located in the US Southeast. Scientific Certification SCS Global Systems Services 8

9 Refrigerator Impacts Chinese vs. USA Shanghai, China Pittsburgh, PA USA

10 Supplier A Impacts in Shanghai Steel, aluminum, copper, manufacturing located in major urban centers. Few emission controls mean Supplier A contributes to serious air quality impacts PM2.5 concentrations are 4x higher in Shanghai than safe levels defined by World Health Organization. Water discharges from manufacturing refrigerator components contaminate the Yangtze River, which in total receives 25 billion tons of pollution each year this river contains so much nitrogen and heavy metals that its waters are toxic. Scientific Certification SCS Global Systems Services 10

11 Suppler A s Connection to Amazon Deforestation ~1/3 of Chinese steel comes from iron ore soured from Brazil Carajás mine Carajás open pit mine converting primary Amazon rainforest to desert Scientific Certification SCS Global Systems Services 11

12 QUANTIFYING ENVIRONMENTAL PERFORMANCE Supplier A vs. Supplier B. Relevant Impact Categories EXTRACTED RESOURCES DEPLETION Energy Resource Depletion Water Resource Depletion Copper Resource Depletion TERRESTRIAL ECOSYSTEM IMPACTS Terrestrial Habitat River Habitat Lake Habitat Riparian & Wetland Habitat Key Species CLIMATE CHANGE EMISSIONS Global Climate Change Arctic Climate Change EMISSIONS WITH ENVIRONMENTAL EFFECTS Oceanic Acidification Loading Regional Acidification Loading Ecotoxic Chemical Loading Bioaccumulative Chemicals EMISSIONS WITH HUMAN HEALTH EFFECTS Ground Level Ozone Exposures PM 2.5 Exposures Hazardous Ambient Air Contaminants Supplier A (China) (Performance Compared to Suppler B) Higher Impacts for Chinese Production in All Impacts RESIDUAL RISKS FROM HAZARDOUS WASTES Production Waste * Based on Life-Cycle Impact Assessment (SCS-002) Lower Impact Level Supplier B Impact level (US) Higher Impact Level 10x 10 2 x 10 3 x 10 4 x 10 5 x 10 6 x

13 Takeaways Comprehensive LCA metrics can be used to identify supply chain hot spots, and to analyze differences in environmental performance. The metrics can be applied to any product, service, organization, commodity, or technology. SCS team identifies supply chain hot spots with LCA screenings, and analyzes environmental performance with full LCAs. SCS Core Impact Database tool, to be launched in summer, will enable all users to understand supply chain hot spots. Scientific Certification SCS Global Systems Services 13

14 Questions? Comments? Contact: Tobias Schultz Scientific Certification SCS Global Systems Services 14