Eco-design V

1. Eco-design V Business response

2. Threat or Opportunity? • Business Responses • Ignore • Watch and Wait • Strategise and Experiment • Build Competitive Advantage

3. Areas of Activity • Eco-Innovation • Profiting from Pollution Prevention • Eco-Efficiency by Design • Innovation • Managing Change • Systems, Stakeholders and Reporting • Financial Sector

4. Engineering Design Elements • Motors Bearings • Materials Fasteners/Joiners • Mechanical Systems Electrical Systems • Fluid Power Electronic Syst. • Interconnects Motion Control • CAD/CAM Other Misc.

5. What Can Designers Do? • D f X • Design for…X where X is • Environment • Re-Use • Re-Manufacture or Disassembly • Energy Efficiency • Extended Product Life (>>MTBF) • Combination(s) of the above

6. Business Case Studies • Scancem Energy & Recovery • Wessex Water • BT • Interface

7. Scancem Energy & Recovery http://www.scancem.com/ • Subsidiary of SCANCEM international marketer/mfgr of mineral based building materials • >$2B in revenues, >11,000 employees • reduced use of fossil fuels by 70,000 tons/yr • Progress: 6% of all energy from rdf in 1996 • 14% acheived by 1998 • 70% reduction by 2002

8. Wessex Water http://www.wessexwater.co.uk/ • reduced over 10% of its energy requirements from its own renewable sources [18.9 Million - kWh] • biogas from sewage sludge • small scale hydropower • committed to outperform UK gov’t Kyoto targets • by achieving 20% by 2005 and 50% by 2020

9. http://www.wessexwater.co.uk/ • Rain harvesting http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=7293 • River biodiversity project http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=6423 • Biogas increase http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=7914 • Treatment of rural wastewater (connection) http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=6455 • Sand filter experiment http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=6457

10. British Telecomm http://www.bt.com/ • Cellular Phone - Product Take Back • BT Will Take Back ANY Manufacturer’s worn out cellular phone at any BT Shop • For either; disassembly, re-use, plastic recycling, precious metal recover, or granulation and smelting

11. http://www.interfaceglobal.com/ • One of World’s Leading Carpet Makers • Offers an innovative floor covering lease where customers do not own carpeting but rather lease it. Interface provides clean, maintained and new looking floor covering for a fixed annual lease. They recycle the fibres from worn out stock and keep the customer happy with a great looking floor. • http://www.interfaceglobal.com/Company.aspx

12. Dow-Jones Sustainability Indexhttp://www.sustainability-index.com/ • to quantify the sustainability performance of an enterprise by focusing on a company's pursuit of sustainability opportunities • meeting market demand for sustainable products and services • the reduction, ideally avoidance, of sustainability risks and costs • This assessment is in line with the five corporate sustainability principles - • innovative technology • corporate governance • shareholder relations • industrial leadership • social well being • that are focused on the integration of economic, ecological and social factors into business strategies.

13. Framework for environmental decision-making Core Charecteristics Temporal and spatial characteristics Decision object Question types Context characteristics Level of improvement Importance of subsystem Complexity of system change Aspiration of decision-maker Level of chain control Decision types Decision steps Cultural context

14. Strategic planning 1 - examples • Policy development • Strategies for the development of new technologies • Strategies for research and development on new product lines

15. Strategic planning 2 – decision steps Strategic planning Strategy implementation Strategy identification &selection external analysis self analysis Strategic plans consider strategic questions evaluate strategic alternatives Road maps make road maps for implementation of strategy in organisation Implementation implement strategy into operational management Monitor & review Monitor & compare results with strategy report results Specify the mission develop vision and goals

16. Strategic planning considering environment 3 - requirements • Making environmental management a business issue that complements the overall business strategy • Use of clear, accepted business terms and concepts • Creation and adoption of indicators to measure the real costs and business benefits of the environmental management programmes • Integration of environmental management into business operations such as design, development, communication and marketing • Job descriptions and compensation of environmental managers as doing business

17. Strategic planning 4 – suitable tools Considering high uncertainty and limited data availability, the following tools prove useful: • Analysis of bulk material flows: MIPS, bulk-MFA • Energy aspects: CERA • In case of good data availability: LCC

18. Capital investments 1 - description • Long-term decisions • Site-specific elements • Involve external consultants • Large number of indices

19. Capital investments 2 - examples • Investments in new technologies or production lines • Permit decisions (accompanied with prevention measures) • Acquiring another company

20. Capital investments 3 – suitable decision tools • More generic future aspects: MFA and MIPS • Consideration of costs: LCC, CBA and TCA • Large investments: MCA • Usual investment evaluation tool: discounted cash flow (DCF) analysis

21. Design and development 1 – decision steps Design and development Product planning Policy formulation Strategic analysis Product ideas Evaluate & select Problem definition Environmental analysis & requirements Conceptual design Evaluation & selection of ideas Feasibility study Detail design Overall environmental evaluation Marketing Promotion in-house Developing promotion plan Preparation for production Evaluation & establishing follow-up activities Estimation of success of product

22. Design and development 2 – basic features • To a large extent based on intuition • Requires environmental awareness of designers • Closely related to R&D • Requires detailed data sets • Should consider concerns of government and customers

23. Design and development 3 - tools • If enough data – LCA • If fewer data – Eco-indicator, checklists etc, • If little toxicity – MIPS • If monetary terms required – CBA, TCA, LCC

24. Design phase 1 - planning • SWOT analysis • Scenarios • Checklists • Matrices Policy and strategy Evaluation and selection

25. Activities Product analysis (product system + life cycle) Priority setting Environmental and design objectives Criteria (terms of reference) Information supply Product life cycle matrices Product examples Reference products Checklists with environmental and design principles Benchmarking Aspect-based tools (ebergy, resource, emissions) Legal aspects Design phase 2 – problem definition

26. Activities Generation of ideas Feasibility study (environmental, economical, technical) Evaluation & selection Information supply Idea generation methods Product examples Priority matrices Strategy wheel Checklists with eco-design options Environmental performance indicators Design phase 3 – conceptual design

27. Design phase 4 – detail design • Elaboration: black lists, compatibility matrices / lists, material lists, components lists • Overall environmental evaluation: LCA, Eco-Indicator, Ecoscan

28. Design phase 5 – marketing & preparatory work for production • Checklists for green marketing • Strategy wheel

29. Design phase 6 - evaluation • Evaluation (product + process): checklists • Follow-up activities: guidelines

30. Environmental marketing 1 - steps • Identify your target group. Are they consumers or buyers? What is the level of information they require? • Identify your message to target group. What are the needs of target group? What are the benefits of the product to this target audience? • Form your message. Are you offering a solution to your customers’ needs? Is the claim perfectly understandable to the target audience? Remember to speak the same language as your target audience. • Verify your claim. Which is the appropriate means of verification for this target audience: detailed life cycle information or eco-labels?

31. Environmental marketing 2 – claim verification • Environmental labelling • Environmental performance evaluation (EPE) • Environmental reporting • Detailed life cycle information

32. Environmental marketing 3 – main features • Not site-specific • Deals with environmental impacts and damages • Refers to global environmental effects (climate change, ozone depletion etc) • Software is important • Small set of indices

33. Environmental marketing 4 - tools

34. Environmental marketing 5 – five focal areas for general public • Energy consumption • Materials application • Packaging • Environmentally relevant hazardous substances • Durability, recycling, end-of-life

35. Operational management 1 – main features • Concerns day-to-day decisions • Involves internal staff and managers • Involves external consultants • Site-specific • Small set of indices • Requires readily available software

36. Operational management 2 – procedural and analytical tools

37. Problems in incorporating environmental information in business decision-making • The complexity of the issue • The knowledge transfer within the company • The difficulty to incorporate the chain perspective in the business decision-making process – that is broader than traditional in-house vision • The limited control over stakeholders in the chain

38. The value of integrated decision-making • Enhancement of product and service performance • Improvement of resource productivity • Cost savings/avoidance • Risk reduction • Revenue generation • Enhanced image • Sustainable enterprise

39. Success factors • Commitment at the top • Motivation of all employees • The creation of proper knowledge management system • Tools have to be compatible to the culture and objectives of an organisation • Interaction between the different corporate activities and question types • Partnership with relevant stakeholders, coalitions with supply chain, co-design projects