Life Cycle Management a Business Guide to Sustainability

Training Session 3 of 4 November 2006

1

Life Cycle Management Training - Outline

Introduction to LCM First session

How LCM is used in Practice Second Session

Communicating LCM Results This Session!

LCM and Stakeholder Expectations Fourth Session

2 2

Learning Objective: Understand the theoretical basis of life cycle management & its history 08.00-08.30

Introduction to LCM First session

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?

09.15-10.00 10.00-10.30

Group exercise Break for coffee & refreshments

done
3 3

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

Definition & Benefits

How LCM is used in Practice Previous Session

10.45-11.00
11.00-12.00

LCM involves
Learning from a range of examples

A process for implementing LCM

Plan Do Check Adjust A focus on design Further examples to illustrate

12.00-12.30 12.30-13.30

Group exercise Break for lunch

done
4 4

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
Main features and link with LCM Examples and diffusion of tools

Communicating LCM Results This Session!

09.00-09.45

Case-studies
Sector-specific drivers Communication strategies Combination of tools

09.45-10.00 10.00-10.30

Group exercise

Break for coffee & refreshments

5 5

Learning Objective: Understand how to identify stakeholders, as well as their priorities & concerns 10.30-10.35 10.35-10.45

Why Engage Stakeholders? Identifying Stakeholders

Potential Stakeholders Ask the right people Ranking

10.45-11.00

Importance of Including Stakeholders

Risk Avoidance Opportunity Creation

LCM and Stakeholder Expectations Fourth Session

11.00-11.45 11.45-12.30 12.30-13.30

Case example Group exercise Break for lunch

6 6

Contents

1. 2.

Definition and scope and section goals Overview of LCM Communication toolbox Main features and link with LCM Which communication tools used in practice? Examples and diffusion Case-studies
Sector-specific requirements Leading companies with communication strategies

3.

4.

5.

What comes next? Recent trends and outlook

7 7

Definition and Scope & Section Goals

8 8

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

9 9

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)

10 10

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

11 11

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

12 12

Section Goals

Provide good understanding of:

Communication tools and strategies Why and how can be they valuable to business?

13 13

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

14 14

Overview of LCM Communication Toolbox Main Features and Link with LCM

15 15

Communication Toolbox

FIRM & ORGANIZATION LEVEL (F&O) Environmental reports F&O EHS reports Social reports Sustainability reports CSR - Corporate Social Responsibility Company Codes Manuals of Conduct Audits Supplier evaluation systems

PRODUCT-RELATED (P-R) Eco-labels P-R Environmental claims Environmental product declarations Product Environmental Performance Indicators Product Profiles Eco-efficiency analysis Prod. Information Schemes GPP guidelines

Advertising, Information brochures & campaigns, websites

16 16

Which tool to communicate to whom?

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

Ext

P-R

F&O

Ext
Int

Internal stakeholders
Employees and management Shareholders

Int

17 17

Reporting - From Environmental Reporting to Corporate Social Responsibility (CSR)

F&O
Global report output by type since 1992.

18 18

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

19 19

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

20 20

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

21 21

Environmental Product Information Schemes (EPIS) - Reference norms

P-R
14020 ISO norms
Type-I ISO 14024 (1999) Environmental labels (e.g. EU-Flower, Blue Engel, White Swan)

Environmental claims and declarations

Type-II ISO 14021 (1999)

Type-III ISO 14025 (2006)

Self-declared environmental claims

Environmental declarations (e.g. EPD, Eco-leaf)

22 22

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)

23 23

ISO-type II environmental claims

(ISO 14021): P-R Definition 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

24 24

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

25 25

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)

26 26

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
27 27

Communication Toolbox and LCM

Communication tool
F&O Reporting

Link with LCM

Variable LCT and LCM not always taken into account / reported Intrinsic in: - Corporate Social Responsibility - Extended Producer Responsibility - Involvement of Suppliers LCT (but not necessarily LCA) explicitly used to set the criteria (multiple indicators) Relationship with product life cycle and LCM is implicit, generally weak Explicit relationship with product life cycle, strictly based on underlying LCA study Variable

Codes of Conduct and Supplier Screening Systems

P-R

ISO-type I ecolabels

ISO-type II environmental claims ISO-type III environmental declarations Other assessment and certification tools

28 28

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

29 29

Which tool to communicate to whom?

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

Ext

P-R

F&O

Ext
Int

Internal stakeholders
Employees and management Shareholders

Int

30 30

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

31 31

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

32 32

Examples and diffusion of communication tools in function of target group

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

33 33

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

Diffusion of ISO-type I labels as of Oct. 2006
Country (Status) Year of establishment
Japan (October 2006) South Korea (June 2006) Germany (State July 2006) Nordic Countries (2006) EU (October 2005) The Netherlands (Milieukeur, October 2006) Catalonia (DGQA) Austria France Spain (AENOR) Sweden (Falcon) (October 06) China (2005) India (October 2006) Brazil (ABNT Qualidade Ambiental) 1994 1991 1992 1994 1992 1993 1991 1993 26 49 19 11 11 56 16 10 (under development) 171 n.a. n.a. 52 n.a. n.a. n.a n.a. 895 n.a. n.a. 275 n.a. n.a. n.a n.a. 1989 1992 1978 1989 1992 1992 47 7 (groups) 103 (categories) 89 61 24 69 2107 1001 529 680 309 257 5152 4100 3,650 n.a. n.a. 360

Product groups

Firms

Products

Source: Frankl et al (2006)

34 34

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

35 35

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
36 36

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)

37 37

I.3 - Final consumers ISO-type II claims

38 38

I.4 - Final consumers Advertising

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

Transportation Extraction

Design and manufacturing

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 fullpage 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 consumers, environmental impact

39 39

I.5 - Final consumers Information campaigns

Example: AISE Washright Campaign fosters better use of detergent products

40 40

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

41 41

II.1 - Business clients ISO-type III declarations

Examples: Japanese Eco-leaf and German AUB EPD

42 42

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

43 43

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

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

44 44

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]

45 45

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

46 46

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 prefecture Total 56 100% municipality -ward & city 449 100% town & village in the prefecture 917 100% Total 1422 100% Eco-Mark (ISO-I) 55 98.2% 441 98.2% 846 92.3% 1342 94.4% Energy star 52 92.9% 247 55.0% 161 17.6% 460 32.3% FSC 7 12.5% 11 2.4% 5 0.5% 23 1.6% Eco-Leaf (ISO-III) 4 7.1% 20 4.5% 39 4.3% 63 4.4%

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

47 47

IV.1 Various Various stakeholders stakeholders Sustainability reporting

Avoided life cycle costs at Johnson&Johnson

[Source: J&J sustainability report 2003]

48 48

IV.1 Various stakeholders Sustainability reporting

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

ECOBILANCIO
ITALIA

Johnson&Johnson: Since 2000 Corporate Sustainability Report

49 49

IV.1 Sustainability reports & Life Cycle Information

ASPECTS Reported instruments Henkel J&J P&G Unilever

Quality

ISO9000

N.a.

N.a.

N.a.

ISO14000

Since 2003 all business units

Since 2003 all business units

N.d.

Since 2003 for all main sites

Environment EMAS
LCA

SA8000 Social Responsibility

On-going

N.a.

N.a.

N.a.

OHSAS18011

7 plants

N.a.

N.a.

GRI Guidelines (in accordance) Sustainability DJSI (Eco-rating)

No

Other

Use of renewable energy sources

N.a.

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

50 50

IV.1 - Reporting Diffusion per country

51 51

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

52 52

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

53 53

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]

54 54

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]

55 55

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] 56 56

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, 3rd 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
57 57

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

58 58

Sector-specific approaches & Case-studies

59 59

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

60 60

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

61 61

I.

Energy Examples of Life Cycle Communication

Vattenfall (SE) Enel (IT) British Energy (UK)

Electricit de France (FR)

62 62

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

63 63

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]
64 64

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]
65 65

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]

66 66

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
67 67

I.2 Enel EPDs at Enel

Certified Environmental Product Declaration of Electricity from Enels wind plant in Sclafani Bagni (Palermo, Italy)

68 68

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
69 69

I.2 Enel LCM in Sustainability reporting

LCM results (e.g. green electricity labelling) is communicated through Corporate Sustainability Report

70 70

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

71 71

II.

Electronic Sector Examples of LC communication

Samsung Seiko Epson Canon Konica Minolta Matsushita Electric / Panasonic Ricoh

72 72

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]

73 73

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

19 models of other products (not specified)

TCO Blue Angel

15 models of displays 1 model of printer

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

Different EPIS applied for different products and different markets

1 model of digital camera 1 model of optical disk drive 1 model of TFT-LCD plate glass 1 model of CRT glass

EMC (Korean EPD system)

1 model of TFT-LCD monitor

1 model of PDP TV 1 model of air conditioner

[Source: Menichetti 2005]

1 model of VCR 1 model of household refrigerator 1 model of laser printer

74 74

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

Energy Labels
10 models of PC monitor 2 models of printer/fax 15 models of PC monitor 36 models of printer/fax

EU Energy Star

16 models of printer 8 models of MFD 3 models of fax machine

US Energy Star

75 models of printer 14 models of MFD 18 models of fax machine

Hong Kong Energy Efficiency labelling scheme

3 models of printer

Energy Saving Label South Korea

Several products, including: TVs, notebooks, mobile phones, air conditioners

Energy labels used in relevant markets in addition to env. labels and declarations

[Source: Menichetti 2005]

75 75

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]
76 76

II.2 Seiko-Epson Combination of applied EPIS

ISO TYPE I
Eco Mark Taiwan Green Mark
Inkjet, laser, and SIDM printers + paper

Blue Angel

2 models of printer

41 products, including laser printers, inkjet printers and cartridges

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

ISO TYPE III

1 model of notebook PC Ecoleaf 1 model of desktop PC

1 model of PC display

Energy Labels
4 models of computer

Different EPIS applied for different products and different markets

20 models of data projector 4 models of large format printer 1 model of MFD 25 models of printer 7 models of scanner several models of printers (inkjet, laser, SIDM)

15 models of printer

International Energy Star

6 models of printer 3 models of scanner

US Energy Star

Energy Saving Label South Korea

N.A.

Energy Conservation Product Certification China

[Source: Menichetti 2005]

77 77

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]
78 78

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]

79 79

What comes next? Outlook

80 80

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

81 81

Sustainability reporting

Oct 2006: Revision of GRI Guidelines (G3) Increasing attention to life cycle management

82 82

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)

83 83

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]

84 84

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] 85 85

Life Cycle Management Training - Outline

Introduction to LCM First session

How LCM is used in Practice Second session

Communicating LCM Results Third session

LCM and Stakeholder Expectations Fourth Session

86 86