Life Cycle Management

a Business Guide to Sustainability

Training Session 3 of 4
November 2006

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Life Cycle Management
Introduction to LCM
Training - Outline First session

How LCM is used in Practice

Second Session

Communicating LCM Results

This Session!

LCM and Stakeholder

Expectations
Fourth Session

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Learning Objective: Understand the theoretical basis of life cycle
management & its history Introduction to LCM
First session
08.00-08.30 What is a life-cycle? Impacts & value created
along the life cycle of a product or service
Definitions
History
Use

08.30-08.40 Why LCM is needed in business and in
government?
Drivers
08.40-09.15 What does LCM encompass?
What are the unique aspects of LCM?
done
09.15-10.00 Group exercise

10.00-10.30 Break for coffee & refreshments

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Learning Objective: Understand the practical aspects of
LCM in policy development & business operations, through
discussions of how to integrate it into decision making &
through case examples
10.30-10.45 Life cycle management How LCM is used in Practice
Definition & Benefits Previous Session

10.45-11.00 LCM involves
Learning from a range of examples
11.00-12.00 A process for implementing LCM
Plan Do Check Adjust
A focus on design
Further examples to illustrate
done
12.00-12.30 Group exercise
12.30-13.30 Break for lunch
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Learning Objective: Provide a good understanding of
communication tools and strategies. Why and how they
can be valuable to business?
08.00-08.15 Why communicating LCM? To whom?
Definition and scope, drivers, target
groups of communication
08.15-09.00 Communication toolbox
Communicating LCM Results
Main features and link with LCM
Examples and diffusion of tools This Session!
09.00-09.45 Case-studies
Sector-specific drivers
Communication strategies
Combination of tools
09.45-10.00 Group exercise
10.00-10.30 Break for coffee & refreshments 5
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Learning Objective: Understand how to identify
stakeholders, as well as their priorities & concerns

10.30-10.35 Why Engage Stakeholders?

10.35-10.45 Identifying Stakeholders
Potential Stakeholders
Ask the right people
Ranking
10.45-11.00 Importance of Including Stakeholders
Risk Avoidance LCM and Stakeholder
Opportunity Creation Expectations
11.00-11.45 Case example Fourth Session

11.45-12.30 Group exercise

12.30-13.30 Break for lunch 6
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 Contents

1. Definition and scope and section goals

2. Overview of LCM Communication toolbox Main features and

link with LCM

3. Which communication tools used in practice? Examples and

diffusion

4. Case-studies
Sector-specific requirements
Leading companies with communication strategies

5. What comes next? Recent trends and outlook

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Definition and Scope &
Section Goals

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 Definition

Definition of Communication within the present training kit:

Any manner of information sharing with stakeholders,

generally through one-way, non-iterative processes, e.g.
Corporate Sustainability Reporting or product eco-labeling

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 Drivers Why communicating LCM?

Consumer demands
Information request from business clients (e.g in the supply chain)
External pressure from society stakeholders (e.g. NGOs) and civil
society
Increasing attention from financial stakeholders
Green Public Procurement programs of public administrations
Requirements from policy-makers (e.g. WEEE and RoHS
European Directives)

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 Opportunities / Target audiences

Competitive advantage in emerging or new green markets

Final consumers
Business clients
Public administrations

Better image
Consumers and clients
Financial stakeholders
NGOs and civil society
Legislators

Influence regulations and pre-normative processes

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 Target groups of communication

External stakeholders
Final consumers
Business clients
Financial stakeholders
Public administrators and policy makers
Civil society and society stakeholders
Suppliers

Internal stakeholders
Shareholders
Employees and management

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 Section Goals

Provide good understanding of:

Communication tools and strategies

Why and how can be they valuable to business?

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 Main questions/topics

Which communication tools used in practice by industry and

business?

Distinguish communication tools vs. target stakeholders

What is used to communicate with whom?

Why and how communication valuable to business?

Relevance and diffusion of communication tools
Case-studies of companies with comprehensive communication
strategies
Sector-specific drivers and communication needs

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Overview of LCM Communication Toolbox
Main Features and Link with LCM

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 Communication Toolbox

FIRM & ORGANIZATION LEVEL PRODUCT-RELATED (P-R)

(F&O) Eco-labels
Environmental reports F&O Environmental claims P-R
EHS reports Environmental product
Social reports declarations
Sustainability reports Product Environmental
CSR - Corporate Social Performance Indicators
Responsibility Product Profiles
Company Codes Eco-efficiency analysis
Manuals of Conduct Prod. Information Schemes
Audits GPP guidelines
Supplier evaluation systems

Advertising, Information brochures & campaigns, websites

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 Which tool to communicate to whom?

External stakeholders Ext

Final consumers P-R
Business clients
Public administrators and
policy makers
Financial stakeholders F&O
Other society stakeholders
Suppliers
Ext
Int
Internal stakeholders
Employees and management
Shareholders Int

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 Reporting - From Environmental Reporting to
Corporate Social Responsibility (CSR)
F&O

Global report output by type since 1992 .

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 Reporting Contents & LCM

F&O
Many different approaches
Several guidelines (e.g GRI Global Reporting Initiative)
Difficult classification, because
Voluntary instruments
Different and heterogeneous industry sectors

Life Cycle Thinking (LCT) and Life Cycle Management (LCM) not
always taken into account / reported

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 Codes of Conduct & Supplier Screening

F&O
Set of requirements on
Ethical
Social
Health & Safety
Environmental aspects

To be fulfilled internally in the company

Often extended to suppliers
Good tool to interact with SMEs
Link with LCM intrinsic in
Corporate Social Responsibility
Extended Producer Responsibility
Involvement of Suppliers

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 Product-related communication tools

P-R
Wide range of Environmental Product Information
Schemes (EPIS)

Main classification according to verification:

First party verification
Third party verification/certification

Coded by ISO norms 1402x

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 Environmental Product Information Schemes
(EPIS) - Reference norms
P-R
14020 ISO norms
Type-I Environmental labels
ISO 14024 (e.g. EU-Flower, Blue Engel,
Environmental (1999) White Swan)
claims and
declarations

Type-II Self-declared environmental

ISO 14021 claims
(1999)

Type-III Environmental declarations

ISO 14025 (e.g. EPD, Eco-leaf)
(2006)

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 ISO-type I ecolabels

P-R
Indicate the overall environmental preferability of a product within a
particular product category

Qualitative, concise information

Allows consumers to take quick purchasing decisions

Main features/characteristics:
Voluntary instrument
Multiple criteria
Life cycle approach
Third-party independent verification (national bodies)

LCT - Life Cycle Thinking (but not necessarily LCA) explicitly

used to set the criteria (multiple indicators)

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 ISO-type II environmental claims

P-R Definition (ISO 14021):

self-declared environmental claims made by manufacturers, importers,
distributors, retailers, or anyone else likely to benefit from such a claim
without independent third-party certification

Several forms of communication:

Statements, symbols or graphics on product or package labels, or in
product literature, technical bulletins, advertising, publicity,
telemarketing, internet
Main advantage for firms: flexibility

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 ISO-type II environmental claims

P-R

Main features/characteristics:
Voluntary instrument
Generally single criteria
First-party self-declaration

Relationship with product life cycle and LCM is implicit,

generally weak

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 ISO-type III environmental declarations

Definition (ISO 14025):

P-R Quantified environmental data for a product, with pre-determined
parameters, based on the ISO 14040 series of standards, which may be
supplemented by other qualitative and quantitative information

Environmental Product Declarations (EPD)

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 ISO-type III declarations

P-R Environmental Product Declarations (EPD) - Main

features/characteristics:
Voluntary instrument
Multiple environmental impact indicators (from LCA)
No threshold criteria / minimum levels to be met
Allows comparability of products
Third-party verified

Product Category Rules (PCR)

Defines all rules for LCA study and EPD format for the specific product
category
Open stakeholder consultation process

Relationship with product life cycle is explicit,

strictly based on underlying LCA study
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 Communication Toolbox and LCM

Communication tool Link with LCM

F&O Reporting Variable

LCT and LCM not always taken into
account / reported

Codes of Conduct and Supplier Intrinsic in:

Screening Systems - Corporate Social Responsibility
- Extended Producer Responsibility
- Involvement of Suppliers

P-R ISO-type I ecolabels LCT (but not necessarily LCA)

explicitly used to set the criteria
(multiple indicators)

ISO-type II environmental claims Relationship with product life cycle

and LCM is implicit, generally weak

ISO-type III environmental Explicit relationship with product life

declarations cycle, strictly based on underlying
LCA study

Other assessment and certification Variable

tools

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Which communication tools are used by industry
and business in practice?
Examples and Diffusion

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 Which tool to communicate to whom?

External stakeholders Ext

Final consumers P-R
Business clients
Public administrators and
policy makers
Financial stakeholders F&O
Other society stakeholders
Suppliers
Ext
Int
Internal stakeholders
Employees and management
Shareholders Int

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 Importance and impacts of communication

Very difficult to measure impacts of LCM communication

Direct impacts (e.g. increase of market share)
Indirect impacts (image, other factors, etc.)

An indirect indicator for the importance of the different

communication tools is the degree of its diffusion, e.g.
Number of labelled products
Amount of sales

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 Observed trends

ISO-type I labels are still the most widely used communication tool
to final consumers

However, important limitations of eco-labels

other communication tools are increasing awareness and fostering
better use of products

Simplification of complex life-cycle information into ISO-type II

claims, however some credibility issues

ISO-type III declarations for B2B increasing but still limited

diffusion

Combination of tools and reporting for various stakeholders

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 Examples and diffusion of communication tools
in function of target group

Communication to:

I. Final consumers
II. Business clients
III. Public Administrations
IV. Various stakeholders
V. Suppliers
VI. Internal communication

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 I.1 - Final consumers - ISO-type I labels

Diffusion of ISO-type I labels as of Oct. 2006

Country (Status) Year of Product groups Firms Products
establishment

Japan (October 2006) 1989 47 2107 5152

South Korea (June 2006) 1992 7 (groups) 103 (categories) 1001 4100

Germany (State July 2006) 1978 89 529 3,650

Nordic Countries (2006) 1989 61 680 n.a.

EU (October 2005) 1992 24 309 n.a.

The Netherlands (Milieukeur, 1992 69 257 360

October 2006)

Catalonia (DGQA) 1994 26 171 895

Austria 1991 49 n.a. n.a.

France 1992 19 n.a. n.a.

Spain (AENOR) 1994 11 52 275

Sweden (Falcon) (October 06) 1992 11 n.a. n.a.

China (2005) 1993 56 n.a. n.a.

India (October 2006) 1991 16 n.a n.a

Brazil (ABNT
Qualidade 1993 10 (under development) n.a. n.a.
Ambiental)

Source: Frankl et al (2006)

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 I.1 - Final consumers - ISO-type I labels

Example of diffusion: Evolution of sales of EU-Flower labelled products

Source: http://ec.europa.eu/environment/ecolabel/marketing/statistics_en.htm

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 I.2 - Final consumers ISO-type I like labels

ISO-type I like labels and certifications, e.g.

FSC Forest Stewardship Council

4945 Chain of Custody certificates in 73 countries
as of Sep. 2006
854 Forest management/COC certificate in 74 countries
www.fsc.org

PEFC Pan European Forest Certification

Blue Flag
www.blueflag.org/blueflag

Eco-Tex standard
Thousands of awards
www.oeko-tex.com

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 I.3 - Final consumers ISO-type II claims

Examples:
UKCRA The United Kingdom
Cartridge Recyclers
Association (UK)

NAPM The National

Association of Paper
Merchants (UK)

Ecological Woodparticle
board (Italy)

DIGODREAM- 100%
recyclable textile floor
covering (Italy)

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I.3 - Final consumers ISO-type II claims

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 I.4 - Final consumers Advertising

Example: Fujitsu develops ISO-type III declarations and advertises it

in newspapers

Transportation Design and manufacturing

Extraction

Transportation

Environmental Impact

Use
Disposal/Recycling

Transportation

Environmental impact data through product life cycle is captured quantitatively.

Advertising of Fujitsu Co. In newspapers

In June 2004, Fujitsu Co. took out a full-
page advertising in major newspapers,
including the Nikkei Shimbun, the most
popular business newspaper in Japan. In
the ad, an engineer points out that, there
are widely many environmentally conscious
products in the market. But most of them
are not proved with objective data
comprehensively. Even if a product is called
an energy-saving product during the use
stage, it might consume numerous amount
of energy during the production stage while
consumers/purchasers are not informed.
Such a product should not be claimed as
environmental conscious product. In order
to fulfill high ideals that real environmental
friendly products are selected by 39
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consumers, environmental impact
 I.5 - Final consumers Information campaigns

Example: AISE
Washright Campaign
fosters better use of
detergent products

[detergent indus try initiative ] - [home ] - [s hort reminder panel ]

If you want more information on this campaign, please contact the local industry
association (click here for contact details).

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 II.1 - Business clients
ISO-type III declarations

National EPD Programmes:

Sweden (107 declarations as Oct 2006, companies of
several countries participating)
Japan (210 decl as Oct 2006)
South Korea (96 EDP as Oct 2006)
Norway (96 declarations)

Many sector-specific EPD programmes

Particularly in the construction and building sector
IT sector
Automotive sector

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 II.1 - Business clients
ISO-type III declarations
Examples: Japanese Eco-leaf and German AUB EPD

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 II.2 - Business clients
Marketing and Sustainability reports

Example of marketing of Eco-leaf at the example of CO2 emissions at

Fujitsu

Source: FUJITSU GROUP 2004 Sustainability Report

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 II.4 - Business clients
Eco-efficiency + ISO-type II

Example: BASF
Eco-efficiency analysis combined
with improved ISO-type II claim
(3rd party critical reviewed)

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 II.5 - All clients
Advertising (ISO-type II)
Example: DOW BUILDING MATERIALS

Qualitative Claim
Visual
Self-claim
II.5 - All clients ddd

[Source: T.Smith 2005]

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 III.1 Public Administrations
GPP Guidelines
Green purchasing guidelines in
Denmark
Currently for 50 product groups
Guideline typically 4-pages doc
Checklist for more insight

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 III.2 Public Administrations
Combination of tools
Combination of tools used by Japanese companies
to provide life cycle information to public stakeholders for green
public procurement
Local authorities Total Eco-Mark Energy star FSC Eco-Leaf
(ISO-I) (ISO-III)
prefecture 56 55 52 7 4
100% 98.2% 92.9% 12.5% 7.1%
municipality -ward & city 449 441 247 11 20
100% 98.2% 55.0% 2.4% 4.5%
town & village in the prefecture 917 846 161 5 39
100% 92.3% 17.6% 0.5% 4.3%
Total 1422 1342 460 23 63
100% 94.4% 32.3% 1.6% 4.4%

[Source: Resource: Japanese Ministry of Environment, 2003 Report of Green procurement]

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 IV.1 Various
Variousstakeholders
stakeholders
Sustainability reporting

Avoided life cycle costs at

Johnson&Johnson

[Source: J&J sustainability report 2003]

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 IV.1 Various stakeholders ECOBILANCIO

Sustainability reporting
ITALIA

Henkel: 1992 first corporate Environmental Report

Since 2000 Sustainability Report
Procter&Gamble: 1993 first corporate Environmental Report
Since 1999 Sustainability Report
Unilever: 2000 first corporate Environmental Report
Since 2001 Environmental Report + Social Report
Johnson&Johnson: Since 2000 Corporate Sustainability Report

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 IV.1 Sustainability reports & Life Cycle
Information
ASPECTS Reported instruments Henkel J&J P&G Unilever

Quality ISO9000 N.a. N.a. N.a.

Since 2003 all Since 2003 all Since 2003 for

ISO14000 N.d.
business units business units all main sites

Environment
EMAS - - - -

LCA

SA8000 On-going N.a. N.a. N.a.

Social Responsibility

OHSAS18011 7 plants N.a. N.a.

GRI Guidelines
No
(in accordance)
Sustainability
DJSI (Eco-rating)

Use of renewable energy

Other N.a.
sources

[Source: Menichetti, in Largo Consumo 1/2004] 50

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IV.1 - Reporting Diffusion per country

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 V.I - Suppliers Codes of Conduct

Example: LEGO

Code of Conduct introduced in 1997

Ethical
Social
Environmental
Health and Safety

Internal requirements + extended to 200 suppliers

Suppliers audited by independent auditors

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 V.II - Suppliers Screening Systems

Example: INMINSUR, Peru

ISO 14001 at the main mining site Antapite

Extended application of EMS to suppliers (10)
Extended application to cover healty & safety aspects
Supplier assessment policy:
Compliance with law
Attention to H&S of employees and subcontractors
Positive impacts on neighborhood
Minimize pollution of water courses

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 VI.1 Internal communication
LCM matrix at 3M Brazil

LCM is a formal part of

3M's new product
introduction process
worldwide
Cross-functional, new
product introduction
teams use a LCM matrix
for systematic and holistic
assessment

LCM matrix analysis applied at 3M Brazil on an adhesive product

As a consequence of LCM matrix analysis, opportunities were
identified for process stage, use stage and disposal stage taking
into consideration the changing from sticks shape to pellets shape
[Source: Lienne Pires 3M Brazil]

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 VI.2 Internal Communication
STEP-model at Hartmann
STEP-model (Systematic Tool for Environmental Progress) since
1997

Integrates environmental impacts with assessments of health, safety

and social relations over the product life cycle

Department for Sustainable Development at Hartmann Corporate

Headquarter in Denmark is responsible for guiding the production
sites

Simple tool for non-experts

developed and implemented throughout the organization
progressive integration in everyday decision-making

[Source: A.A.Jensen 2006]

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 VI.3 - Internal Communication
KEPIs at Nokia
Key Environmental Performances Indicators (KEPIs)
Based on LCA results of a KEPI project by Motorola, Nokia, Panasonic
and Philips
Method significantly reduces the reliance on the supply chain for data
on material flows
Identifies components and materials that account for
most of the environmental impacts over the life cycle

Internal communication channels with employees:

Intranet
Two global events yearly
Global in-house magazines, global environmental e-magazine, monthly
newsletters and several other internal publications

[Source: Nokia, Integrated Product Policy Pilot Project

Stage 1 Final Report: Life Cycle Environmental Issues of Mobile Phones, Finland, April 2005]

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 Summarising considerations

ISO-type I ecolabels
Most suited for communication to consumers, allow for quick decisions,
thousands of labelled products
Pros: Credibility (criteria, stakeholder involvement, 3 rd party verification)
Cons: Several limitations (top-down approach, limited number of
product groups, format not always appropriate, bureaucracy)

ISO-type I-like labels

Well suited for communication to consumers, allow for quick decisions,
thousands of labelled products
Pros: Credibility (criteria, 3rd party verification)
Cons: restricted to specific sectors (e.g. wood, textiles)

ISO-type II-environmental claims

Well suited for communication to consumers, thousands of claims
Pros: Flexibility (bottom-up approach)
Cons: limited credibility, usually not whole life cycle, just one
environmental parameter
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 Summarising considerations (cont.)

ISO-type III environmental declarations

Most suited for B2B communication, complex for consumers, allow for
comparison, hundreds of declarations worldwide
Pros: Credibility (PCR with stakeholder involvement, 3rd party
verification), large amount of detailed information, full life cycle
Contra: Complex information without benchmark, high resources need
(full LCA), complicated for SMEs (simplified systems needed, currently
being tested)

Codes of conduct, supplier screening systems

Well suited for communication with and gather info from suppliers
Pros: Simplicity and flexibility, well suited to involve SMEs
Contra: Limited to cradle-to-gate, not necessarily 3rd party verified

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Sector-specific approaches &
Case-studies

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 Key aspects of case-studies

Presence of a Communication Strategy

Sector-specific drivers
Combination of tools
Firm-level reporting
Product-oriented communication (combination of labels)
ISO-type I eco-labels
ISO-type I like labels and certification
ISO-type II environmental claims
ISO-type III environmental declarations
Social labels
Advertising & marketing
Focus on Sustainability
Two sectors:
I. Energy
II. Electronics

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 I. Energy
Sector-specific drivers
Pressure from regulation / EU Directive on electricity markets
Fuel Mix disclosure
Public information on environmental impacts, at least in terms of CO2
emissions and radioactive waste

Information request from business clients

Emerging markets for Green Electricity

Green pricing / tariffs
Green electricity labels

Green Public Procurement programs of public administrations

Social acceptance issues / Dialogue with stakeholders

e.g. nuclear, but also renewables

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 I. Energy
Examples of Life Cycle Communication

Vattenfall (SE)

Enel (IT)

British Energy (UK)

Electricit de France (FR)

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 Sector I. Energy
Case-study 1: Vattenfall (Sweden)

Longstanding experience in LCA

Extensive reporting
Environmental reports
Life cycle assessment of Vattenfalls electricity supply in Sweden
2005
Several EPDs

EPD Lule River 1999 first absolute EPD in the Swedish system

ISO-type I ecolabel for certification of green energy

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 I.1 Vattenfall
Combination of EPIS for communication

Vattenfall can apply for

labelling for electricity ca 1
TWh, Bra Miljval, Good
Environmental Choice

95% of electricity production is

certified with an Environmental
Product Declaration

[Source: Bodlund 2005]

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 I.1 Vattenfall
Added value of certified EPD - More than LCA

Information system open for all

products and services

Based on ISO/DIS 14025

Third-party verified and certified

An EPD for electricity and district

heat contains
Life Cycle Assessment (LCA)
Study of impacts on biodiversity
Environmental Risk Assessment
(ERA)
Radiology (nuclear power)
[Source: Bodlund 2005]

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 I.1 Vattenfall
Strategy and key conclusions at Vattenfall

LCA towards common practice

Credibility needed, ensured by third-party certification and

Product Category Rules (PCR) with stakeholder participation

Focus on not just one environmental issue, but several ones

EPD is one way, which Vattenfall Nordic countries have

chosen for keeping track

Key values: Openness and accountability

[Source: Bodlund 2005]

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 Sector I. Energy
Case-study 2: Enel (Italy)

LCA activities
Since 1999 at R&D level
Just recently at corporate level (Environmental Direction)

First two EPDs in 2004-05 within the LIFE-INTEND project

EPDs on two renewable energy technologies

Wind (first EPD of electricity systems in Italy)
Geothermal (first EPD worldwide)

EPDs used for communication with local authorities

Social acceptance issues (wind)
Provide holistic approach and new perspective on comparison of
technologies

Communication channels: website + sustainability report

Green pricing: adoption of guarantee label 100% energia verde

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I.2 Enel
EPDs at Enel

Certified Environmental Product Declaration of Electricity

from Enels wind plant

in Sclafani Bagni (Palermo, Italy)

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 I.2 Enel - Green electricity labelling for
business clients and consumers

Green electricity label is also attached to the

products of the business client buying renewable
energy from Enel (e.g. producer of mineral water)
Important means of LC communication

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 I.2 Enel
LCM in Sustainability reporting
LCM results (e.g. green electricity labelling) is communicated through
Corporate Sustainability Report

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 II. Electronic Sector
Sector-specific drivers

Environment embedded in management structure

LCA/LCT and eco-design with clear targets
Green Public Procurement programs of public administrations
Japan, China, other countries and public administrations
Pressure from regulation
WEEE, RoHS, Directives on batteries and accumulators containing
mercury, etc.
Information request from business clients
Diversification and competitiveness on the market
Increasing attention from financial stakeholders

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 II. Electronic Sector
Examples of LC communication

Samsung
Seiko Epson
Canon
Konica Minolta
Matsushita Electric / Panasonic
Ricoh

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 Sector II. Electronic Sector
Case-study 1: Samsung (S. Korea)

Green management report since 1999

Environment/Safety Management Committee, headed by CEO

LCA first adopted in 1995, currently applied for design &

development of products, in combination with DfX
(design for recycle/service/disassembly/assembly)

Internal tool EPS Eco-Product System

5 modules: LCA, ecodesign, environmental accounting, Green
procurement, Customer Service

Wide range of EPIS applied

[Source: Menichetti 2005]

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 II.1 Samsung
Combination of applied EPIS
ISO TYPE I
More than 60 products, of which:

7 models of printer

1 model of fax

Kela (since 1995) 5 models of TV sets

20 models of computers+monitors

8 models of air purifiers

TCO 15 models of displays

Different EPIS applied
19 models of other products (not specified)

Blue Angel 1 model of printer for different products

ISO TYPE II
and different markets
Eco RoHS compliant label (for memories, PwBs, DVDs, digital cameras, etc.

ISO TYPE III

1 model of digital camera

1 model of optical disk drive

1 model of TFT-LCD plate glass

1 model of CRT glass

1 model of TFT-LCD monitor

EMC (Korean EPD system)
1 model of PDP TV

1 model of air conditioner

1 model of VCR
[Source: Menichetti 2005] 1 model of household refrigerator

1 model of laser printer

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 II.1 Samsung
Combination of applied EPIS (cont.)

Energy Labels
10 models of PC monitor 15 models of PC monitor

2 models of printer/fax 36 models of printer/fax

EU Energy Star 16 models of printer US Energy Star 75 models of printer

8 models of MFD 14 models of MFD

3 models of fax machine 18 models of fax machine

Hong Kong Energy 3 models of printer Energy Saving Label Several products, including: TVs,
Efficiency labelling South Korea notebooks, mobile phones, air
scheme conditioners

Energy labels used in

relevant markets in
addition to env. labels
and declarations [Source: Menichetti 2005]

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 Sector II. Electronic Sector
Case-study 2: Seiko-Epson (Japan)

Self-definition: Visionary Company

CEO: aim of the corporation is to be five or ten years ahead of other
companies in implementing comprehensive eco-programs, thus
exceeding the expectations of its stakeholders

Environmental report since 1999, Sustainability and CSR report

since 2003
Environmental target and progress

LCA both at product and production plant level

Strong emissions reductions achieved in new plant

Groupwide LCT targets at each level:

Design, procurement, manufacturing, sales, recovery/recycling

Obtaining environmental label qualifications is an objective of both

design and sales departments [Source: Menichetti 2005]
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 II.2 Seiko-Epson
Combination of applied EPIS
ISO TYPE I

Inkjet, laser, and SIDM printers + Blue Angel 2 models of printer

Eco Mark paper

41 products, including laser printers, inkjet printers and cartridges

Taiwan Green Mark

ISO TYPE II

50% of all products and 43% of total sales in all business qualify for the Epson Ecology label

ISO TYPE III Different EPIS applied

for different products
1 model of notebook PC

1 model of desktop PC
15 models of printer

20 models of data projector

Ecoleaf

1 model of PC display
and different markets 4 models of large format printer

Energy Labels

4 models of computer 1 model of MFD

International Energy Star 6 models of printer US Energy Star 25 models of printer

3 models of scanner 7 models of scanner

Energy Saving Label N.A. Energy Conservation Product several models of printers (inkjet,
South Korea Certification laser, SIDM)
China

[Source: Menichetti 2005]

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 II.2 Seiko-Epson
Communication Strategy

Existence of an overall communication strategy

Each type of EPIS has its own target-audience and objectives

ISO-type II label Epson Ecology demonstrates improved environmental

performance over conventional models (both IT and semiconductors)
Customers can obtain specifications with Epson Ecology Profile

Specific ISO-type II labels for sustainable procurement

IT Eco Declaration format in Scandinavian countries
PC green label in Japan (indicates promotion recycling society and meeting
industry-wide voluntary targets)

[Source: Menichetti 2005]

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 II.2 Seiko-Epson
Communication Strategy (cont.)

High priority on ISO-type I ecolabels

Japan, Taiwan and Germany
In Taiwan increased sales Epson aims at certifying at least 80% of
entire product range
Respond to growing number of green public procurement regulations
(e.g. certified for Chinas energy conservation product certification)

42 models hold Ecoleaf ISO-type III declaration

Strong internal LCM communication

Use of web-based communication tools

[Source: Menichetti 2005]

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What comes next?
Outlook

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 Recent and near-future trends

Reporting: More Life Cycle Approaches

Product-related communication: towards providing benchmarks

and communicating progress

Sustainability assessment (also product-related) integrating

environmental, social and economic aspects

One tool is not enough!

Combination of EPIS along the product life-cycle

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 Sustainability reporting

Oct 2006: Revision of GRI Guidelines (G3)

Increasing attention to life cycle management

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 Communicating progress (product-related)
New ISO-type II claims
Example: ISO-type II labels in Japan
Panasonic: Factor X provides concise information about the
improvement of new products with respect to old ones

GHG factor = (GHG efficiency of the new product) / (GHG efficiency of the old product),
where
GHG efficiency = (Product life x Product functions) / (GHG emissions over the entire life cycle)
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 Future EPDs with benchmarking

Recent study (2006) on Consumer demands on Type III environmental declarations

Recommendation: Benchmark with graphical presentation
Economic benchmark, reflecting quality/price ration
Benchmark both within product category and average goods

[Source: K.Christiansen et al 2006]

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 Towards product-related sustainability
communication
Socio-Eco-Efficiency Analysis (SEEbalance) at BASF

Used for internal

purposes (eco-design,
product development)
but also:
Marketing, support to
external customers and
social acceptance of
product
For communication
issues e.g. in corporate
sustainability report

[Source: A.A.Jensen 2006

http://corporate.basf.com/de/sustainability/oekoeffizienz/vortraege.htm?id=V00-S64E69T3rbcp466]
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Life Cycle Management
Introduction to LCM
Training - Outline First session

How LCM is used in Practice

Second session

Communicating LCM Results

Third session

LCM and Stakeholder

Expectations
Fourth Session

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