Tools and Strategies for Sustainable Consumption and Production

Outline • Overall strategies • Concepts • Tools - analytical - procedural - communication • Policies and Instruments • What now?

Goal: Sustainable Development - the three pillars Environment Economy Sustainability Social

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

Overall Strategies • • Dematerialization Life Cycle Management Product Service Systems Investment and insurance Corporate responsibility Reporting Education and training

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

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

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

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

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

Product Service Systems III: Three main approaches • Services providing added value to the product life cycle • Services providing “final results” for customers • Services providing “enabling platforms” for customers

Tools • • • Business perspective Analytical tools Procedural tools Communication tools Toolbox

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

Companies’ Potential Areas of Improvement § Processes: Eco-efficiency, Total Quality Management, CPA, En. TA, environmental risk assessment. § Products/ Services: Dematerialization, LCA, PSS, Eco-design, Function Based Approach. § Consumer communication: Consumer opportunities, Advertising and Marketing, Ecolabels. § Systems: Life Cycle Management, Material Flow Accounting, Environmental Management Systems, Multi-stakeholder dialogues, supply

Analytical tools • • Environmental Risk Assessment Life Cycle Assessment Material Flow Analysis Function Based Approach

Environmental Risk Assessment (ERA) HAZARD IDENTIFICATION EXPOSURE ASSESSMENT EFFECT ASSESSMENT Prediction of emission rate Dose-response tests Environment Exposure prediction Predicted Exposure Concentration Human Health Predicted Exposure Dose Extrapolation Acceptable Daily Intake - Risk Characterisation - Uncertainty Analysis Environment Predicted No-Effect Concentration

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

Life Cycle Assessment II: Structure According to ISO 14040: Application

Life Cycle Assessment III: Inventory Analysis Acquisition of raw material Production Use/ reuse/ maintenance Recycling/ Waste Management

Life Cycle Assessment IV: Impact Assessment

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

Function-based approach (FBA) “Human needs should be met by products and services that are aimed at specific ‘functions’ such as food, shelter and mobility, and that are provided through optimized consumption and production systems that do not exceed the capacity of the ecosystem. ”

Function Based Approach II: Example Direct and indirect Need area or function Shelter Food Mobility Personal care Leisure Clothing Education Total energy use person* 39% 18% 9% 8% 6% 2% 100% *Average for Groningen/ the Netherlands as reported by Tukker (2003)

Procedural tools • • Environmental Management Systems Eco-design Supply chain management EPR

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

Eco-design Looks at the relation between a product and the environment. Some common propositions about eco-design or Design for Environment (Df. E) include: • captures the environmental impacts of the whole production-consumption chain; • 60% to 80% of life-cycle impacts from products are determined at the design stage; • Df. E is to develop generic, company and product independent standards (under ISO TC 207) • way to engage business interest and action because it focuses on the products' market

Eco-design II: Key message To introduce the environmental parameter into the design of products, processes and/or activities in an effective manner The environmental parameter becomes a business opportunity!

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

Eco-design IV: Prioritisation Matrix Category 3: Environmental benefits Technical and economic problems Environmental Advantages - Category 1: Environmental benefits Technical and economic feasibility Category 4: Few environmental improvements Technical and economic problems + Category 2: Few environmental improvements Technical and economic feasibility Technical and Economic feasibility + Category 1: Highly recommended to carry out in short term. Category 2: Can be incorporated: the more the better. Category 3: Need further improvements. Category 4: Will be sorted out.

Eco-design V: Example 1 - Humidity catchers

Eco-design VI: Example 2 – Clothes from recycled material

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

Communication tools • Consumer Communication and Marketing • Eco-labelling • Multi-stakeholder dialogue

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

Consumer Communication II: Advertising and Marketing Could brands be their authority figures? “I use Body Shop products which play a role in supporting third world countries and their jobs. ” Mass Media & Marketing are key

Eco-labelling ·Type I (ISO 14024) - third party certification labels: claims are based on criteria set by a third part. Examples include the EC Eco-Label, Nordic Swan and the German Blue Angel; ·Type II (ISO 14021) – self certified labels claims are based on specific declarations by manufacturers or retailers. Numerous examples e. g. ‘made from X% recycled material’; ·Type III (ISO /TR 1425) – Environmental Product Declarations or LCA based labels are claims consist of quantified products information base on life cycle impacts. · Single issue labelling schemes such as the

Eco-labelling II: Examples

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

Product Sustainability Toolbox Change Applications Tools Data

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

Product Sustainability Toolbox Tools · ERA, LCA, MFA, FBA · Eco-design/ Df. E · Eco-labelling: Type I, III · Supply Chain Management · Multi-stakeholder dialogue · Consumer Communication · and more. . .

Policies and instruments • Integrated Product Policy • Sustainable Procurement • Policy instruments to encourage SCP

Traditional life cycle view of policy Resource Inputs Minimise waste Production Use/ Consumption End of life/ disposal Maximise efficiency Traditional focus of governments

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

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

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

Policies and Instruments for SCP II *Source: OECD, 2002.

What Now? (general) h Global framework programme on SCP to be based on life cycle thinking h Global and regional activities to be developed and implemented h Examine the use of life-cycle related tools to support programme activities. . .

What now? (CP Practitioners) • What does SCP mean in your day to day work? • What is needed to include life cycle perspectives in current work? • How can the demand side and the question of needs be addressed? • Who will you need to work with to achieve your integrated target objectives?