Operationalizing Sustainability

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1 LCA is a science-based methodology that helps identify actionable improvement opportunities. Operationalizing Sustainability with Life Cycle Thinking Looking beyond sustainability toward a holistic approach of life cycle thinking in order to inspire organizations to think bigger and act differently.

2 Sustainability has been on an accelerating track for more than a decade. Sophistication and innovation have driven the need for more, or better yet next-generation sustainability ( beyond sustainability ). For long-term business prosperity, it is no longer acceptable for sustainability to be a supplemental check the box add-on exercise or to simply commit to recycling and reducing emissions in our manufacturing facilities. Stakeholders are all too aware of the possibilities and beyond one s four walls or operations or function within the company, a holistic approach that looks upstream and downstream and into nearby systems as well. A key ambition of an LCT approach is to enable business to thrive through better products, better value proposition for the customer, ]better market share, better line of sight to environmental risks and opportunities, better positioning with respect to policy trends, enhanced brand image, and more. A robust, quantitative tool that employs this life cycle perspective is life cycle assessment (LCA). LCA is a standardized, science-based methodology that assesses the environmental aspects and potential impacts of a product or service throughout its lifetime, including raw material extraction, preprocessing, manufacturing, transportation, use, and end of life (Figure 2). LCA can be a valuable tool for evaluating challenging sustainability issues or for determining meaningful areas for improvement along the value chain. It can also be leveraged to develop environmental product declarations (EPDs) to earn credits within green building schemes such as LEED v4. Figure 1. Sustainable development considers the triple bottom line of economics, society, and the environment. importance of doing more and having a positive, meaningful impact on our world. Concepts and global initiatives such as the net positive movement, science-based targets, circular economy, the role of technology, transparency, and the United Nations Sustainable Development Goals In addition to looking across the various stages of the life cycle, another strength of LCA is that it is a multi-attribute assessment tool. Typical environmental impact categories include greenhouse gas emissions, biodiversity impacts, water consumption, human toxicity, metal depletion, land use, particulate emissions, ecotoxicity, energy use, materials scarcity, eutrophication, acidification, and a variety of others. When performed by experienced sustainability practitioners, LCA can be supplemented with complementary analyses, such as life cycle costing (LCC); social LCA; environmental impact assessment; and other established tools to ensure a triple bottom line, comprehensive evaluation is undertaken. Figure 2. Diagram of the typical life cycle stages evaluated in a life cycle assessment. (SDGs) aim to inspire organizations to think bigger and act differently. We are at a stage of maturation where sustainability needs to be an integrated part of business or as this article teases operationalized. An incredibly valuable approach to leverage is life cycle thinking (LCT), a systemsbased philosophy/approach to taking in the big picture to identify, weigh, and compare, between options. It allows for more informed decisions and considers economic, social, and environmental considerations (Figure 1). It expands thinking As described by the International Organization for Standardization (ISO) in ISO 14040, an LCA study consists of four consecutive and iterative phases (Figure 3): Phase 1 Goal and Scope Definition sets out the context of the study and explains how and to whom the results will be communicated. It includes elements as such as defining the functional unit, establishing the sys tem boundary, stating the assumptions, limitations and

3 the LCI and LCIA stages; consideration of completeness, sensitivity and consistency checks; determination of data sensitivity; and presentation of results. Figure 3. Four iterative phases of a life cycle assessment. allocation methods to be used, and the impact categories chosen. Phase 2 Inventory Analysis (LCI) is where the environmental inputs and outputs associated with a product or service are compiled. It includes inputs of water, energy, and raw materials, and emissions to air, land, and water from across the entire value chain of the product or service. Phase 3 Impact Assessment (LCIA) involves the evaluation of the significance of potential environmental impacts based on the LCI flow results modeled in phase 2. Phase 4 Interpretation summarizes the conclusions and recommendations for the study. It includes the identification of significant issues detected in the results of LCT and LCAs are sound approaches that demonstrate a commitment to a more sustainable economy. LCA was originally used primarily to assess products or services, but is also being expanded to evaluate advanced technologies, alternate business models, and even entire organizations. Whether an organization is motivated by customer expectations, their own sustainability goals, regulations and standards, market trends, and technology innovation, LCA can be the foundation. Diverse, cross-functional teams throughout an organization can engage with one another employing a life cycle perspective to improve resiliency and identify sustainability improvement opportunities (Figure 4). A credible marketing campaign, materials sustainability strategy, product differentiation, thought leadership, customer engagement, supply chain optimization, operational efficiency, and regulatory compliance are all important processes that can benefit from operationalizing sustainability within a company. Perhaps one of the more advantageous opportunities for LCA, from a product portfolio perspective, is its ability to facilitate innovative thinking during product design and development. LCA, either screening or detailed, can be a key element of environmentally conscious product design, offering insights into supply chain, materials, packaging, logistics, performance, end of life (or the next life), as well as customer Figure 4. Sustainability improvement opportunities from employing a life cycle perspective.

4 Protocol Initiative Product Life Cycle Accounting and Reporting Standard ( (Standard) was being developed. By piloting the standard, GE was able to provide feedback to ensure that the standard was rigorous, yet practical to comply with for any number of future applications across its diverse product portfolio. LCA Case Study While serving as the strategic internal LCA and sustainability team for General Electric (GE), the sustainability experts at Aspire Sustainability performed a cradle-to-grave, multi-criteria LCA of the 2.5-MW onshore wind turbine. The motivation for commencing the project was two-fold. First, the company s customers were increasingly requesting and in some cases beginning to require life cycle environmental profile data for the products that they were purchasing. Second, the World Resources Institute (WRI) and the World Business Council for Sustainable Development s (WBCSD) Greenhouse Gas (GHG) The execution of the detailed LCA included direct engagement with and collection of primary data from major component suppliers (e.g., blades, tower, generator, etc.). The study encouraged the engagement \of cross-functional teams within the company, as well as education and relationship strengthening across the entire value chain. It also underscored the variables within the LCA model that were driving the impacts across the product life cycle notably the tower, blades, and the turbine s distribution and installation activities. While the life cycle GHG results were featured in accordance with the reporting requirements in the Standard, a supplemental holistic assessment of 17 environmental impact categories was administered to achieve a full detailed LCA aligned with the LCA ISO standards 14040/44 (Figures 5 and 6). The results indicated that the majority of environmental impacts were in supply chain (materials and components). Energy and carbon payback times were calculated as a way to emphasize the life cycle benefits of the technology. When compared to experience and value proposition. It can provide insights into practicable, actionable efforts to improve the life cycle footprint. Energizing efforts are even underway to use LCA to better quantify the benefits of the transition to a circular economy. This includes calculating benefits and impacts related to eco-design; leasing and sharing business models; and materials recovery, reuse, and remanufacturing strategies. For completeness, it is important to note the limitations of LCA in addition to its strengths. LCA attempts to model complex supply chains and calculate the potential environmental impacts of these flows. There are a variety of uncertainties associated with these models that must be recognized for LCA to be useful to decision-makers. Additionally, LCA does not cover all the environmental impacts associated with human activities; for example, erosion, invasive species, odor, and noise, are not currently quantified in LCA models because the methods have not yet been fully developed or integrated into commercial software. Lastly, it should be noted that LCA does not provide a definitive answer, but is a tool in the decision-making toolkit and should be accompanied by other analyses, such as risk assessment, regulatory compliance review, and cost-benefit analysis. Successful engagement requires a range of strategies in addition to clear and consistent communications. Business drivers, project goals, information management capability, sustainability maturation level of the business unit or project In Next Month s Issue NAAQS Perspectives, Part 2 The December issue picks up where the September issue left off with further insight and discussion of the process for reviewing U.S. National Ambient Air Quality Standards (NAAQS), including the role of science, particularly health science, and advisory committees such as the Clean Air Science Advisory Committee (CASAC) in setting standards.

5 20-year wind turbine lifetime, they illustrated that the benefits of generating clean energy quickly offset any impacts incurred during the manufacture, distribution, installation, operation, and disposal of the wind turbine. In addition to the standard report and internal LCA documentation, supplemental deliverables were also produced. A custom Microsoft Excel tool was developed that was able to vary site-specific inputs to calculate life cycle GHG results for sales teams to share with customers about their unique installation. Results of the LCA were also shared with product designers and engineers at the GE Wind Center of Excellence who leveraged the results for eco-design activities of blades and towers. Bringing value to the company through product design improvements, reduced environmental impacts, customer satisfaction, enhanced supply chain relationships and many other ways, LCA is an effective and proven approach for advancing sustainability. Source: Fisher, A.; Flanagan, W.P. Life Cycle GHG Assessment of a 2.5-MW Wind Turbine: Road Test of the GHG Protocol Initiative s Product Life Cycle Accounting and Reporting Standard, LCA X, Portland, OR, November 3, Figure 5. Life cycle GHG emissions for 2.5-MW wind turbine. Figure 6. Multi-attribute LCA results for 2.5-MW wind turbine. team, and individual orientation toward sustainability, can all be key aspects affecting a successful engagement. LCA is an established methodology that supports actionable aspects of the business strategy and a valuable tool in any sustainability toolkit. There are clear advantages to developing and leveraging expertise that employs LCT and LCA within a company. Whether the technical expertise is in-house or retained through experienced and certified external professionals, ( frequent engagement and guidance should be solicited to execute LCT and LCA efforts, develop tools and resources, and educate company personnel, with a focus on aligning sustainability activities with business value. The legacy business as usual case where companies focus on compliance and only damage ecosystems and societies within the limits set by regulations has sunset. We are even past the time for green where we do a little more than we have to (i.e., by polluting just a little less, using less energy from non-renewable sources, etc.). We are on the edge of a new wave beyond sustainability where we begin to work on restoring damaged ecosystems and activating a regenerative economy. Investment in a robust product sustainability strategy utilizing a life cycle perspective and the power of LCA can ensure that your company s operations are sustainable well into the future, both in terms of environmental stewardship and business competitiveness. em Angela Fisher is Co-founder and Chief Sustainability Strategist of Aspire Sustainability, Breckenridge, CO. angela@aspiresustainability.com. Fisher delivers a refreshing blend of holistic, life cycle thinking, expert competency, and pure passion for sustainability. For nearly 13 years, she has had proven success steering essential corporate and product sustainability programs across diverse, global industry sectors. She also has extensive leadership and collaboration experience and is active across numerous sustainability networks and academic institutions globally. She brings a high level of credibility, quality, and commitment to all her collaborations. She is a certified life cycle assessment professional (LCA CP), an International Society of Sustainability Professionals Sustainability Associate (ISSP-SA), and a LEED Green Associate. For more about her company, Aspire Sustainability, visit aspiresustainability.com.