Eco-design IV

Tools and Strategies for

Sustainable Consumption
and Production

Contents
1. Overall strategies and concepts
2. Tools
2.1. Business perspective
2.2. Analytical tools
2.3. Procedural tools
2.4. Communication tools
2.5. Product sustainability toolbox
3. Policies and Instruments

1. Overall strategies and concepts

of sustainable production and
consumption

Goal: Sustainable Development

- the three pillars
Environment

Economy

Sustainability
Social

Policy principles

Continuous improvement
Transparency
Eco-efficiency
Precaution
Life cycle thinking
Polluter pays
Common but differentiated responsibilities

Overall Strategies

Dematerialization
Life Cycle Management
Product Service Systems
The Triple Bottom Line Concept
Investment and insurance
Corporate responsibility
Reporting
Education and training

Dematerialization
Addressing needs and functionality rather than
the product alone
Tracking throughput of materials and energy in
industrial and consumption processes
Major increase in resource productivity

Life Cycle Management

Return to the
environment
Consumption/
Use

Obsolescence Societys Need

for Products and
Services

Re-Use

Manufacturing

Recycling

Refining

Exploration

Extraction

Life cycle thinking provides a holistic

framework taking the entire system
of a product, process or service into
account, enabling us to make
realistic choices for the longer term
taking multiple factors into account.
Life cycle thinking needs tools to make
it practical to regular activities and
decisions.

Life Cycle Management (cont.)

Life Cycle Management (LCM) is an integrated
concept for managing the total life cycle of goods
and services towards more sustainable production
and consumption.
uses various procedural and analytical tools taken
from the Product Sustainability Toolbox
different applications and integrates economic, social
and environmental aspects into an institutional
context.

Product Service Systems

Product Service Systems (PSS): strategy to
develop a marketable mix of products and services
that are jointly capable of fulfilling a client's need with less environmental impact.
- a need rather than a product
- win-win solutions
- de-coupling economic growth and
environmental degradation.

Product Service Systems:

Definition
A Product-Service System can be defined as the
result of an innovation strategy, shifting the
business focus from designing and selling
physical products only, to selling a system of
products and services which are jointly capable
of fulfilling specific client demands.
UNEP (2002)

Product Service Systems:

Three main approaches
Services providing added value to the product
life cycle
Services providing final results for customers
Services providing enabling platforms for
customers

The Triple Bottom Line Concept

Three Pillars of Sustainable
Development

Society

Environment

Sustainable
Developme
nt
Economy

The Triple Bottom Line Concept

Environment
Society

Economy

The Triple Bottom Line Concept

The Wuppertal
Prism

Source:
The Wuppertal Institute,
http://www.foeeurope.org

TBL In Society

Accepted concept

Incorporated in law
TBL assessments widely used
Business reporting tool
Expands decision-making scope
Significant advancement over
previous assessment tools

2. Tools for sustainable production

and consumption
2.1. Business perspective
2.2. Analytical tools
2.3. Procedural tools
2.4. Communication tools
2.5. Toolbox

2.1. Business perspective

in SCP

Business Goals
Companies can act in two very different ways
to Societys demand for sustainable
development:
1. Reactive: Fulfilling existing laws, directives
and perhaps standards
2. Proactive: Go beyond existing regulation to
become leader and use sustainability aspects
as business opportunities

Companies Potential Areas of

Improvement
Processes: Eco-efficiency, Total Quality Management,

CPA, EnTA, environmental risk assessment.

Products/ Services: Dematerialization, LCA, PSS, Ecodesign, Function Based Approach.
Consumer communication: Consumer opportunities,
Advertising and Marketing, Eco-labels.
Systems: Life Cycle Management, Material Flow
Accounting, Environmental Management Systems, Multistakeholder dialogues, supply chain management.

2.2. Analytical tools

in SCP

Three types of analytical tools for

eco-design:
A. Quantitative tools such as LCA
B. Matrices
C. Checklists

List of analytical tools

Life Cycle Assessment (LCA)

Material Input per Unit of Service (MIPS)
Environmental Risk Assessment (ERA)
Material Flow Accounting (MFA)
Cumulative Energy Requirements Analysis (CERA)
Environmental Input-Output Analysis (env, IOA)
Life Cycle Costing (LCC)
Total cost accounting (TCA)
Cost-Benefit Analysis (CBA)
Matrices
Checklists

Environmental Risk Assessment (ERA)

HAZARD IDENTIFICATION
EXPOSURE ASSESSMENT

EFFECT ASSESSMENT

Prediction of emission rate

Dose-response tests

Environment

Exposure prediction

Predicted Exposure
Concentration

Human Health

Predicted
Exposure Dose

Extrapolation

Acceptable Daily
Intake

RiskCharacterisation
Characterisation
--Risk
UncertaintyAnalysis
Analysis
--Uncertainty

Environment

Predicted No-Effect
Concentration

ERA steps
1. Hazard identification relationship between
different levels of exposure and effects
2. Effect assessment
3. Exposure assessment

Define scope

Identify hazards

Identify how hazards

could be realized

Estimate consequences if
hazards were realized

Estimate the probability that

hazards will be realized
Calculate risk

Assess the significance

of the risk

no

Choice of more
exhaustive examination

yes

FIGURE 15.6 Steps in a risk assessment.

Life Cycle Assessment

Life Cycle Assessment (LCA) is a tool for the
systematic evaluation of the environmental aspects of a
product or service system through all stages of its life
cycle.
provides an adequate instrument for environmental
decision support.
reliable LCA performance is crucial to achieve a lifecycle economy.
The International Organisation for Standardisation
(ISO), has standardised this framework within the
series ISO 14040 on LCA.

Life Cycle assessment

From cradle to
grave

Impacts on
Human
health
Ecosystems
Resources

ISO 14040 Life Cycle Assessment, Principles and

framework
Life cycle assessment framework

Goal
and scope
definition
Inventory
analysis
Impact
assessment

Interpretation

Direct applications:
- Product development
and improvement
- Strategic planning
- Public policy making
- Marketing
- Other

Life Cycle Assessment Structure

According to ISO 14040:
Goal and scope
definition
(ISO 14041)

Inventory
Analysis
(ISO 14041)

Impact
Assessment
(ISO 14042)

Interpretation
(ISO 14043)

Application

Life Cycle Assessment:

Inventory Analysis

IN
PU
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a
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m
aterial
E
nergy

A
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q
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f
rawm
aterial
Production
U
se/reuse/m
aintenance
R
e
c
y
c
l
i
n
g
W
asteM
anagem
ent
Acquisition of
raw material

Production

Use/ reuse/
maintenance

Recycling/ Waste
Management

System Boundaries

O
U
T
P
U
T
A
tm
ospheric
E
m
isions
W
a
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t
e
W
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e
r
s
S
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d
W
astes
C
o-products
O
t
h
e
r
W
astes

Steps of the inventory phase

Preparing for data collection
Data collection
Validation of data
Relating data to unit process
Relating data to functional unit
Data aggregation
Refining system boundaries

Example of a product system, production and use of

steel sheet metal, for life cycle inventory analysis.
1. Mining of coal

2. Mining of iron ore

4. Crushing grinding

3. Mining of limestone
Product
system

Environment

5. Transport
System
boundary

6. Sintering
7. Blast furnace
8. Steel furnace

15. Production of
electricity

9. Steel moulding

Elementary
flows

10. Transport
11. Cutting, shaping
12. Use
13. Waste handling

14. Landfill

Life Cycle Assessment:

Impact Assessment
Classification and
Characterisation
CO2
CH4
CFC
SO2
NOx
NH4
...
...
...

Normalisation
and Weighting

Climate Change

Acidification

...

Environmental
Index

Elements of the life cycle impact assessment

procedure.
Mandatory elements
Selection of impact categories, category indicators and models
Assignment of LCI results to impact categories (Classification)
Calculation of category indicators (Characterisation)
Category indicator results (LCIA profile)

Optional elements
Calculating the magnitude of category indicators relative to reference
value(s) (Normalisation)
Grouping
Weighting
Data quality analysis

Elements of the interpretation

phase of an LCA study.
Goal and
scope
definition

Inventory
analysis

Impact
assessme
nt

Identification of

Evaluation by

significant issues

completeness check
sensitivity check
consistency check

Conclusions,
Recommendations
And reporting

LCA-result:
Environmental impact / functional unit
Example:

Amount of nitrate in water/ produced amount of meat

Types of environmental
interventions in LCA
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Extraction of abiotic resources

Extraction of biotic resources
Land use
Climate change
Stratospheric ozone depletion
Photo-oxidant creation
Human toxicity
Eco-toxicity
Acidification
Nutrification

Strengths of LCA
Comprehensive with respect to environmental impact
connected to a function
Avoids problem shifting
Explicit distinction between science based information
and value choices
International standardisation by ISO
Best practice identification envisaged in SETAC-UNEP
programme

Weaknesses of LCA
Too complex
Too data intensive
Does not directly consider future changes in
technology and demand
Does not consider societal effects
Only known and quantifyable environmental
effects are considered
Requires expert knowledge

Life Cycle Costing (LCC)

Looks at the complete life-span of a product to calculate
the entire life cycle costs, which include all internal costs
plus external costs (=externalities) incurred through
throughout the entire life cycle of a product, process or
activity
Puts a monetary value on the emissions and resource
use (unfortumately, no valuation method has been
generally agreed)

Total Cost Accounting (TCA)

Describes the long-term, comprehensive analysis of the full
range of internal costs and savings resulting from pollution
prevention and other environmental projects undertaken
by a firm
Comprehensive costs and savings inventory
Precise cost allocation
Use of long time horizons
Use of profitability indicators which account for the time value
of money
Does not consider eco-efficiency

Cost-Benefit Analysis (CBA)

Determines whether or not the benefits of an
investment or a policy outweigh its costs
Very broad scope
All costs and benefits are expressed in monetary
values
Large uncertainty because of many valuations

CBA in energy and transport sectors

Steps in the analysis

Tools, data

Step1. Emissions.
Environmental burdens

Technology characterisation
Life Cycle Inventory

Step 2. Impacts. Dispersion.

Exposure. Impacts.

Dispersion models: local, national, regional, global

Exposure response functions: public health, man-made
environment (agriculture, materials), natural environment
Critical loads
Reseptor at risk data

Step 3. Damages

Market prices
Willingness to Pay - studies

Eco-costs/Value ratio
retail
distribution

marketing
assembly

components

Eco-costs
The costs to prevent polluting emissions (to the air,
water and ground), during the life cycle, at a sustainable
level of earths carrying capacity
The eco-costs of materials, taking into account the ratio
of recycling
The cost of energy at the price level of sustainable
energy
The eco-costs related to the costs of labour
The depreciation of the eco-costs of production facilities

Cost-effectiveness Analysis (CEA)

Derivation of CBA
Determines the least cost option of attaining a
predefined target
Benefits are not expressed in monetary terms

Function-based approach (FBA)

Human needs should be met

by products and services that

are aimed at specific functions
such as food, shelter and
mobility, and that are provided
through optimized consumption
and production systems that do
not exceed the capacity of the
ecosystem.
Life Cycle Initiative Brochure,
UNEP / SETAC, International
Partnership, 2003.

Function Based Approach: Example

Need area or function
Shelter
Food
Mobility
Personal care
Leisure
Clothing
Education
Total

Direct and indirect

energy use per person*
39%
18%
18%
9%
8%
6%
2%
100%

*Average for Groningen/ the Netherlands as reported by Tukker (2003)

Material Flow Accounting

Material Flow Accounting (MFA) refers to accounting in
physical units (usually in tons); the life cycle of materials in
a given location (i.e., substances, raw materials, products,
wastes).
Examples of flow accountings are:
Eco-toxic substances that may cause environmental
problems
Nutrients such as nitrogen and phosphates due to their
critical influence over eutrophication
Aluminium, the economic use, recycling and reuse of which
are to be improved

Ecological Rucksack and MIPS

Ecological Rucksack: The total weight of
material flow carried by an item if consumption
in the course of its life cycle.
MIPS (Materials Intensity per service unit): An
indicator based on the material flow and the
number of services provided.
Reducing MIPS is equivalent to increasing
resource productivity

Ecological
Rucksack
Diagram

Some other ecological rucksacks

Coffee maker 298 kg
toothbrush about 1.5 kg
plastic bucket 26 kg
silver chain 20 kg
12 wine glasses 6 kg
5-gram gold ring 2000 kg
wooden beads 0.5 kg
(Simonen 1999)

Plastic or Cotton Bag?

The plastic bag (PE plastic, 18 g) has the following ecological

rucksack: abiotic and biotic material 0.1 kg, water 1.17 kg, air
0.04 kg, earth 0 g.
The cotton bag (54 g) has the following ecological rucksack:
abiotic and biotic material 1.277 kg, water 214.704 kg, air
0.216 kg, earth 3.402 g. (Vh-Jaakkola 1999, Wuppertal
Institute)
If you use the cotton bag for a year and buy a plastic bag once
per day, which is the better buy?
Use the Ecological Rucksack to determine the solution

Factor 4 and Factor 10

Factor 4: the idea that resource productivity should be
quadrupled so that wealth is doubled and resource use
is cut in half. Doing more with less. Result: substantial
macroeconomic gains.
Factor 10: per capita materials flows in OECD countries
should be cut by a factor of ten. Requirement to be able
to live sustainably in the next 25-50 years.
Note: technology for Factor 4 already exists!!
Factor x: Going beyond Factor 4 and Factor 10

Material Flow Accounting (MFA) approaches

Specifies pathways of materials in, out and through the
economy of a nation, a region, a community, business
sector, company or household
Two approaches:
1. The flow of bulk materials industrial metabolism (bMFA = bulk Material Flow Analysis
2. The flows of a single substance or a group of
substances (SFA = Substance Flow Analysis

MFA main characteristics

Limited by a given region or a given period in
time
Cradle-to-grave approach
Works well for a number of policy questions

MFA - applications
The bookkeeping of bulk materials and
substance flows: monitoring, accounting,
inventories
Modelling of bulk material flows and stocks to
assess the origins of pollution, the fate of certain
inflows, future trends in flows and stocks

Cumulative Energy Requirements

Analysis (CERA)
CERA states the entire demand valued as primary
energy which arises in connection with the
production, use and disposal of an economic
good (product or service)
Limited formal recognition documentation only in
Germany

Model of CERA
CERA = CERAp + CERAu + CERAd
CERA cumulative energy requirements of the economical good
CERAp - cumulative energy requirements for the production
CERAu - cumulative energy requirements for the use
CERAd - cumulative energy requirements for the disposal

Issues in CERA
Related materials expenditures
Selection of materials and process technology with
respect to energy criteria
Relevance of the treatment of used goods through
energetic exploitation and disposal, recycling of parts,
components and materials under energy aspects
The influence of the service life of energy consuming or
energy converting economic goods under energy aspects
The emissions related to energy conversions during
production, use and disposal

Environmental Input-Output Analysis

(env. IOA)
IOA: Wassily Leontief 1930s, focusing on
industrial trades
Env. IOA: extension of IOA to consider pollution
generation and abatement activities
Requires very detailed data

Categories of env. IOA

Generalised Input-Output Models: technical
coefficients matrix reflecting also pollution generation
and abatement activities
Economic-Ecological Models: extension of the interindustry framework to include ecosystem sectors
Commodity-by-Industry Models: environmental
factors are expressed as commodities tarbed in a
commodity-by-industry input-output table

2.3. Procedural tools

Environmental Management Systems

Environmental Audit
Eco-design
Supply chain management
Environmental Audit
Environmental Performance Review (E P R)
Environmental Impact Assessment (EIA)
Total Quality Environmental Management (TQEM)

Environmental Management Systems

An environmental management system (EMS) is a
means of ensuring effective implementation of an EM
plan or procedures in compliance with environmental
policy objectives.
A key feature on any effective EMS is the preparation of
documented system procedures and to ensure effective
communication and continuity of implementation.
There are certification systems for EMS as the ISO
14001 and EC EMAS scheme.
Ongoing development towards product-orientated
management systems (POEMS).

Environmental Management
System: principles
How can an organisation formulate an
environmental policy and objectives, considering
legislative requirements and information about
significant environmental impacts?
Continual environmental improvement of the
organisation
ISO 14001

Environmental Management
System: steps
Environmental
policy

Management
review

Checking and
corrective actions

Planning

Implementation
and operation

Eco-design (= Life Cycle Design)

Integration of environemtal aspects into the
familiar product development process
Step-by.step plan that goes through all stages (7
steps) in product development
Win-win situation: benefits for both business and
the environment
Promoted by UNEP, 1997

Eco-design
Looks at the relation between a product and the environment.
Some common propositions about eco-design or Design for
Environment (DfE) include:
captures the environmental impacts of the whole productionconsumption chain;
60% to 80% of life-cycle impacts from products are
determined at the design stage;
DfE is to develop generic, company and product independent
standards (under ISO TC207)
way to engage business interest and action because it
focuses on the products' market vulnerability.

Eco-design: Key message

To introduce the environmental parameter
into the design of products, processes and/or activities
in an effective manner

The environmental parameter becomes a

business opportunity!

Eco-design: Changes in the product

development procedure
1. Adjustment of the requirements
(specifications) of the product, process or activity
2. Realisation of corresponding LCA or other
analysis tools to identify weak points
3. Development of Eco-design guidebook

Eco-design: Prioritisation Matrix

+

Category 3:
Category 1:
Environmental benefits
Environmental benefits
Technical and economic problemsTechnical and economic feasibility

Environmental
Advantages Category 4:
-

Category 2:
Few environmental improvements
Few environmental improvements
Technical and economic problemsTechnical and economic feasibility

- Technical and Economic feasibility

+

Category
Category
Category
Category

1:
2:
3:
4:

Highly recommended to carry out in s

Can be incorporated: the more the be
Need further improvements.
Will be sorted out.

Eco-design: Example 1
- Humidity catchers

Eco-design: Example 2
Clothes from recycled material

Environmental audit
Checking of the Environmental Management
Systems
ISO 14.010 sets out the principles and rules for
an internal and external auditing of EMS

Environmental Performance
Evaluation
Provides guidelines for the choice, monitoring and
control of environmental indicators representing the
performance of a company
Supports internal decision making
Three indicator categories: (1) environmental condition
indicators, (2) operational performance indicators, (3)
managements performance indicators

Supply chain management

Companies as customers can influence their
suppliers to respect certain sustainability
requirements with regard to the product they
procure.
Greening the supply chain.

Environmental Impact Assessment

Evaluation of effects related to a specific project

Location-specific
Comparison of alternatives
Three types: (1) strategic EIAs, (2) project EIAs,
(3) location EIAs

Total Quality Environmental

Management (TQEM)
Expansion of TQM programmes
Four basic elements:
1. Customer Identification environmental quality is
determined by customer preferences
2. Continuous Improvement involves all employees
3. Doing the job right the first time prevention of
environmental risks
4. Taking a System approach to design all components so
that they function together, and support each other in
achieving desired goals

2.4. Communication tools

Consumer Communication and Marketing
Eco-labelling
Multi-stakeholder dialogue

Consumer Communication
Opportunities for the consumer to make a change:
Conscious purchasing
Consumers power (voting with the pocket, activism)
Waste separation, water, energy, etc.
Buy eco-efficient products (saving)
Quality of life versus consumerism
Sustainable life styles
Crucial role of retail sector

Eco-labelling
Type I (ISO 14024) - third party certification labels: claims
are based on criteria set by a third part. Examples include the EC
Eco-Label, Nordic Swan and the German Blue Angel;
Type II (ISO 14021) self certified labels claims are based on
specific declarations by manufacturers or retailers. Numerous
examples e.g. made from X% recycled material;
Type III (ISO /TR 1425) Environmental Product Declarations
or LCA based labels are claims consist of quantified products
information base on life cycle impacts.
Single issue labelling schemes such as the private Forest
Stewardship Council (FSC) and organic food labels do not fall
within any of the categories but are partially converted by ISO 14020 General
Guidelines for Environmental Claims and Declarations.

Eco-labelling: Examples

Multi-stakeholder dialogue
Changes of the supply chain need often multistakeholder dialogue to allow that several
players act together with the same aim.

Voluntary agreements
Commitments undertaken by firms or by
industrial organisations to deal with
environmental problems
The agreements are made with or recognised by
public authorities

2.5. Product Sustainability Toolbox

Change

Applications
Tools
Data

Product Sustainability Toolbox

Applications
Material, Process and Product Comparison
Investment Decision Support
Strategic Planning
Marketing, Customer and Regulatory
Compliance
Weak Point Analysis
Benchmarking

Product Sustainability Toolbox

Tools
ERA, LCA, MFA, FBA
Eco-design/ DfE
Eco-labelling: Type I, II, III
Supply Chain Management
Multi-stakeholder dialogue
Consumer Communication
and more...

3. Policies and instruments

Integrated Product Policy
Sustainable Procurement
Policy instruments to encourage SCP

Traditional life cycle view of policy

Resource
Inputs
Minimise
waste

Production

Use/
Consumption

End of life/
disposal
Maximise
efficiency

Traditional
focus of
governments
Traditional
focus of
governments

Integrated Product Policy (IPP)

Life-Cycle Thinking cumulative environmental impacts - from
the cradle to the grave.
Working with the market setting incentives so that the market
moves in a more sustainable direction by encouraging the supply
and demand of greener products.
Stakeholder Involvement it aims to encourage all those who
come into contact with the product
Continuous Improvement improvements can often be made to
decrease a products environmental impacts
A Variety of Policy Instruments the IPP approach requires a
number of different instruments because there are such a variety
of products and different stakeholders.

Sustainable Procurement
Sustainable procurement is the process in which organisations
buy supplies or services by taking into account:
the best value for money considerations such as, price,
quality, availability, functionality, etc.;
environmental aspects ("green procurement": the effects on
the environment that the product and/or service has over its
whole lifecycle, from cradle to the crave);
the entire Life Cycle of products;
social aspects: effects on issues such as poverty
eradication, international equity in the distribution of
resources, labour conditions, human rights.

Policy instruments
to encourage SCP
Regulatory: standards, norms, EPR (environmental
performance reviews), labelling, (enforcement)
Economic instruments: taxes, subsidies,credits,
financial incentives, etc.
Social: awareness raising, education, information,
voluntary initiatives
Others: indicators, green accounting...

Policies and Instruments for SCP

GovernmentPolicyInstrumentsforWastePreventionandManagement

Production
Patterns

Household
ConsumptionPatterns

Wastegeneration
andcollection

EconomicTools
*Taxonpackaging
*Economic
incentivesforcleaner
productionandwaste
prevention.

EconomicTools
*Depositrefund
schemes
*Taxeson
disposableproducts
andpackaging.

EconomicTools
*Wastefees&taxes
*Paysasyouthrow

RegulatoryTools
*Environmental
Standards.
*Ecolabelling

Regulatorytools
*Ecolabelling

Voluntary
Approachesand
Technological
Innovation
*Triplebottomline
*Ecodesign
*Dematerialisation
*Shiftfromproducts
toservices.
*Source: OECD, 2002.

SocialTools
*Environmental
Education
*Informationon
greenpurchasing
*Supportto
voluntaryinitiatives.

Regulatorytools
*ExtendedProducer
Responsibility
*Regulationon
wastecollectionand
recyclingschemes
*Provisionof
infrastructurefor
recycling
SocialTools
*Informationon
recyclingschemes
*.Supportto
voluntaryinitiatives

WasteManagement
Systems

EconomicTools
*Taxeson
landfillingand
incineration.
Regulatorytools
*Frameworkbased
onwastehierarchy
*Environmental
regulationonwaste
management
*Bansonlandfilling
*Targetforreducing
landfillingand
incinerationofwaste
*Targetstoincrease
recyclingrates
Technology
innovation
*Energyrecovery
incinerators.
*Cleanertechnology