Life Cycle Management a Business Guide to Sustainability

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 theoretical basis of life cycle management & its history 08. 00 -08. 30 Why LCM is needed in business and in government? Drivers 08. 40 -09. 15 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 • What does LCM encompass? What are the unique aspects of LCM? 09. 15 -10. 00 Group exercise 10. 00 -10. 30 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 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 12. 00 -12. 30 Group exercise 12. 30 -13. 30 Break for lunch • How LCM is used in Practice – Previous Session 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 09. 00 -09. 45 • Communicating LCM Results – This Session! 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 5

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 Opportunity Creation 11. 00 -11. 45 Group exercise 12. 30 -13. 30 Break for lunch LCM and Stakeholder Expectations – Fourth Session Case example 11. 45 -12. 30 • 6 6

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 – – 5. Sector-specific requirements Leading companies with communication strategies 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 Ro. HS 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? Ext • External stakeholders • Final consumers • Business clients • Public administrators and policy makers • Financial stakeholders • Other society stakeholders • Suppliers P-R F&O Ext Int • Internal stakeholders • Employees and management • Shareholders Int 17 17

F&O Reporting - From Environmental Reporting to Corporate Social Responsibility (CSR) 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 1402 x 21 21

Environmental Product Information Schemes (EPIS) - Reference norms P-R 14020 ISO norms Environmental claims and declarations Type-I ISO 14024 (1999) Environmental labels (e. g. EU-Flower, Blue Engel, White Swan) Type-II ISO 14021 (1999) Self-declared environmental claims Type-III ISO 14025 (2006) 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 P-R • Definition (ISO 14021): claims made by manufacturers, importers, “self-declared environmental 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 28 28

Which communication tools are used by industry and business in practice? Examples and Diffusion 29 29

Which tool to communicate to whom? Ext • External stakeholders • Final consumers • Business clients • Public administrators and policy makers • Financial stakeholders • Other society stakeholders • Suppliers 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 B 2 B – 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. 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 Product groups Firms Products establishment Japan (October 2006) 1989 South Korea (June 2006) 1992 Germany (State July 2006) 1978 Nordic Countries (2006) 47 2107 5152 1001 4100 89 529 3, 650 1989 61 680 n. a. EU (October 2005) 1992 24 309 n. a. The Netherlands (Milieukeur, 1992 69 257 360 Catalonia (DGQA) 1994 26 171 895 Austria 1991 49 n. a. France 1992 19 n. a. Spain (AENOR) 1994 11 52 275 Sweden (Falcon) (October 06) 1992 11 n. a. China (2005) 1993 56 n. a. India (October 2006) 1991 16 n. a Brazil (ABNTQualidade – 1993 n. a. 7 (groups) 103 (categories) October 2006) 10 (under development) Ambiental) 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 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 CO 2 emissions at Fujitsu 43 43

II. 4 - Business clients Eco-efficiency + ISO-type II • Example: BASF Eco-efficiency analysis combined with “improved” ISO-type II claim (3 rd 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 [Source: Resource: Japanese Ministry of Environment, 2003 Report of Green procurement] 47 47

IV. 1 Various 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 • Johnson&Johnson: Since 2000 Corporate Sustainability Report 49 49

IV. 1 Sustainability reports & Life Cycle Information ASPECTS Reported instruments J&J P&G Unilever ISO 9000 N. a. ISO 14000 Since 2003 all business units N. d. Since 2003 for all main sites EMAS - - LCA SA 8000 On-going N. a. OHSAS 18011 7 plants N. a. GRI Guidelines (in accordance) Quality Henkel No N. a. Environment Social Responsibility Sustainability DJSI (Eco-rating) Other Use of renewable energy sources [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 3 M Brazil • LCM is a formal part of 3 M'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 3 M 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 – 3 M 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, 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, 3 rd 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 B 2 B communication, complex for consumers, allow for comparison, hundreds of declarations worldwide – Pros: Credibility (PCR with stakeholder involvement, 3 rd 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 3 rd 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 CO 2 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) • Electricité 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 Vattenfall’s 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 Miljöval, ”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 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-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, Ro. HS, 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 Df. X (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 Different EPIS applied for different products and different markets 19 models of other products (not specified) TCO 15 models of displays Blue Angel 1 model of printer ISO TYPE II Eco – Ro. HS compliant label (for memories, Pw. Bs, 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 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 EU Energy Star 15 models of PC monitor 36 models of printer/fax 16 models of printer US Energy Star 75 models of printer 8 models of MFD 3 models of fax machine Hong Kong Energy Efficiency labelling scheme 14 models of MFD 18 models of fax machine 3 models of printer Energy labels used in relevant markets in addition to env. labels and declarations Energy Saving Label South Korea Several products, including: TVs, notebooks, mobile phones, air conditioners [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 Inkjet, laser, and SIDM printers + paper Blue Angel 2 models of printer 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 and different markets 1 model of notebook PC 1 model of desktop PC 20 models of data projector 1 model of PC display Ecoleaf 15 models of printer 4 models of large format printer Energy Labels 4 models of computer International Energy Star 6 models of printer 1 model of MFD US Energy Star 3 models of scanner Energy Saving Label South Korea N. A. 25 models of printer 7 models of scanner Energy Conservation Product Certification China several models of printers (inkjet, laser, SIDM) [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 China’s 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 (G 3) • 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=V 00 -S 64 E 69 T 3 rbcp 466] 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