Ways to integrate material efficiency in company s activities Material audit

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Ways to integrate material efficiency in company s activities Material audit SPIN Transnational Forum on Sustainable Production through Innovation 22.11. Poznan Paula Eskola, Motiva Oy, Finland

Motiva A Finnish expert company promoting efficient and sustainable use of energy and materials Key activities: Adviser for policy preparation Energy efficiency agreements Energy auditing Material efficiency auditing Promoting use of renewable energy Communication aiming attitude change Advice services for environmentally sound public procurements http://www.motiva.fi/en/

Material Efficiency Audit Motiva has developed a methodology for Material Efficiency Auditing Practical tool for companies to improve their material efficiency The main focus is finding cost savings Uniform methodology for all business sectors (SME & larger) Production (plant) oriented approach MFCA methodology (EN-ISO 14051) applied The Motiva Energy Audit methodology and experience was utilised in the development process Concrete measures for improvement SAVINGS costs material resources environmental impacts

Development of Audit Methodology

Contents of Material Efficiency Audit

Results of material audits in Finland -pilot cases

Results of material audits in Finland Uponor Oy: manufacturer of plastic pipe systems Uponor Oy develops, manufactures and markets heating, water and energy distribution, ventilation and wastewater processing systems Main products are plastic pipes for these systems Raw materials used are PE and PP plastic Minimum amount of waste comes out of factory Wastage created in process is either recycled scrap or so-called excess weight in product

Results of material audits in Finland Uponor: manufacturer of plastic pipe systems Raw material costs 90 % of total costs related to materials Average savings potential 1450 / ton of plastic (incl. also indirect costs) Total savings potential (scrap & excess weight) several hundred thousand euros same order of magnitude as factory s total energy costs 45 concrete measures were proposed for 9 improvement points 18 measures were estimated major and recommended to put into action as soon as possible 8 measures were implemented immediately Implementation of other measures were planned, scheduled and documented in the management system

Results of all pilot cases 40 100 concrete measures for improvement per audit most of these ideas came from company s staff rating and prioritisation of measures helps implementation Calculated yearly savings potential EUR 0,3-1 million per company 20-50 % is carried out in the first year. Savings potential of a single material flow up to 30 %

Conclusions Material auditing is effective in improving material efficiency and generating cost savings and environmental benefits Material audit brings out the relevance and true cost of material losses in a new way Profitability of auditing is based on: systematic approach and neutral external view making use of company s own knowledge Material audits raise awareness and competence on material efficiency in the audited companies this itself reduces material losses Integrating findings of material audit into management system ensures implementation continuous improvement!

National activities in Finland Natural Resource Strategy 2009 Natural Resources Report 2010 Programme of the Finnish Government National Material Efficiency Programme? Sources: Natural Resource Strategy: http://www.sitra.fi/julkaisut/muut/a%20natural%20resource%20strategy%20for%20finland.pdf Natural Resources Report: http://www.tem.fi/files/29319/tem_5 netti.pdf Government programme: http://www.valtioneuvosto.fi/hallitus/hallitusohjelma/pdf332889/en334743.pdf

European Commission COM() 571 final Roadmap to a Resource Efficient Europe Member States should: Put in place incentives that stimulate a large majority of companies to measure, benchmark and improve their resource efficiency systematically (continuous); Help companies work together to make the best use of the waste and by-products they produce (e.g. by exploiting industrial symbiosis) (continuous); Ensure that advice and support is available to help SMEs identify and improve their resource efficiency and sustainable use of raw materials (continuous); Source: http://ec.europa.eu/environment/resource_efficiency/pdf/com_571.pdf

Material Audit Programme Preparation of material audit programme has started launching of programme 2013 target: subsidised programme where authorised auditors perform audits using Motiva s audit model Benefits triggers starting of audits enables quality control enables monitoring and impact assessment of results (cost savings, environmental benefits) on national level makes national target setting possible Vision: Elements of Material Audit Programme

Additional information Mo?va s web pages: hdp://www.mo?va.fi/en/areas_of_opera?on/material_efficiency/material_efficiency_a udit_tools_for_companies Case studies: ras Oy produc?on of lever and automa?c taps and showers Case Oras Oras discovered savings opportuni?es through material audit (pdf) (204.9 KB) ponor Oy produc?on of plas?c pipes for hea?ng, water and energy distribu?on systems Case Uponor Waste materials cost money (pdf) (239.3 KB) umon Oy: produc?on of balcony facade products and glazed terraces Case Lumon Material audit improves produc?on (pdf) (173 KB) Contact: Paula Eskola, paula.eskola@mo?va.fi, tel. +358 424 281 245

Paula Eskola, M.Sc. (tech.), works at Motiva Oy as a consultant in the field of material efficiency of products and manufacturing. Motiva Oy is a state owned non-partial expert organisation promoting efficient and sustainable use of energy and materials in Finland. She is responsible for the development of material efficiency audit and analysis tools for the industry and business sector. She also participated in the development of the MFCA (material flow cost accounting) standard ISO 14051. Prior to this position she worked for 11 years as a research scientist at VTT Technical Research Centre of Finland. Her expertise fields are: material efficiency, material flow cost accounting, environmental effects of material flows and life cycle assessment. To contact Paula Eskola, please visit Motiva's website at http://www.motiva.fi/en/