Anne Rønning STØ

1. Environmental Performance Indicators and StrategyFrom LCI data for LWA to indicators for Environmental Management Anne Rønning STØ

2. National and international authorities • National requirements for reduction of climate gas emissions, which may lead to considerable investments and increased manufacturing cost. • Introduction of a national and international system for climate gas trading • A radical increase in landfill waste costs (e.g. for waste from building demolition), demands put on the different manufacturing branches to design and operate recycling systems for waste after end use, as well as a requirement for a certain, minimum share of recycled material in new products. • A radical increase of prices for fossil energy resources and electric energy.

3. Why use environmental indicators for decision support Systematic work for • changing of the energy mix • more energy- and material efficient products • change of the product mix and material composition of products may prevent large increases in manufacturing costs for companies in a 5-10 year perspective. The introduction of environmental indicators in the various decision situations may become an efficient tool to: • plan • follow-up • control this company performance in these areas.

4. Deciding what to measure • The challenge is to decide upon the most important parameters to be prioritised and in which form these should be expressed.

5. When to use EPIs • For planning, goal-setting and follow-up on a strategic level • For planning, goal-setting and follow-up on an operational level • External communication

6. When to use EPIs • On a strategic level - Effectiveness indicators • do the right thing • On a operational level - Efficiency indicators • do it correctly

7. Type of indicators - how are they expressed

8. Example of effectiveness indicator

9. Example of effectiveness indicator

10. Use of strategy matrix • Making Product 1 better, e.g. by selecting a substitute material or choosing another supplier (with a better environmental profile); • Making Product 2 better, e.g. by making the manufacturing process more energy efficient and converting to a less fossil-dependent energy mix.

11. Example of efficiency indicator

12. Delegating responsibility;linking decisions and consequenses • everyone should be able to see the effect on the environment resulting from the decisions they make • breaking into a cause/effect chain

13. Delegating responsibility;linking decisions and consequenses

14. Delegating responsibility;linking decisions and consequenses In the EMS - make a close connection between the significant environmental aspects, and the functions responsible for continuous environmental improvement • how should the indicator be expressed • how often should it be reported and to whom • who is responsible for following up

15. Not just reporting

16. EPI as a part of EMS

17. Procedures for reporting and managing

18. The greenhouse gas protocol - a corporate accounting and reporting standard • World Business Council for Sustainable Development (WBCSD) and World Resources Institute (WRI) • suggested this standard is used as the common, internationally accepted system for accounting and reporting

19. The greenhouse gas protocol - a corporate accounting and reporting standard

20. Scope 1 - Direct GHG emissions accounts for direct GHG emissions from sources that are owned or controlled by the reporting company. • production of electricity, heat, or steam • physical or chemical processing • transportation of materials, products, waste, and employees, • fugitive emissions: intentional or unintentional releases such as: equipment leaks from joints, seals; methane emissions from coal mines; HFC emissions during the use of air conditioning equipment; and CH 4 leakages from gas

21. Scope 2 - GHG emissions from imports of electricity, heat, or steam • accounts for indirect emissions associated with the generation of imported/purchased electricity, heat, or steam

22. Scope 3 - Other indirect GHG emissions Indirect emissions that are a consequence of the activities of the reporting company • employee business travel • transportation if products, materials and waste • outsourced activities, contract manufacturing • emissions from the use and end-of-life phases of products and services produced by the reporting company • employees commuting to and from work • production of imported materials

23. The GHG Protocol recommends that companies account for and report scopes 1 and 2 at a minimum.

24. CO2-trading system • EU-countries • expected to participate in the initial phase EU trading system between 2005-07 • CO2 quotas will in this period probably be free based on a nationally selected reference year from 1990-2000 • Non-EU countries (Norway) • Leca must participate in the Norwegian trading system during the period 2005-07. • Quotas corresponding to 80% of 1990 emissions will be free

25. Conclusions • Implementation of EPI on all level in organisation is vital • Strategic indicators few in all levels but operational indicator can be many and different in each level. • Link to EMS important. • Not only a reporting system – but a tool on strategic and operational level! • CO2 trading demands focus on this issue – EPI can be the tool to do that in the whole organisation. • GHG emission based on the same data as EPI. Again a tool to keep this issue in focus