From Life Cycle Thinking to a Sustainable Value Chain A business - - PowerPoint PPT Presentation

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From Life Cycle Thinking to a Sustainable Value Chain A business - - PowerPoint PPT Presentation

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DEDICATED TO MAKING A DIFFERENCE From Life Cycle Thinking to a Sustainable Value Chain A business organisations perspective 3rd International Conference on Life Cycle Management From Analysis to Implementation Zurich, 27 - 29 August 2007 J

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1 LCM Zurich WBCSD 28 Aug 07 Ge

From Life Cycle Thinking to a Sustainable Value Chain

A business organisation’s perspective

3rd International Conference on Life Cycle Management

From Analysis to Implementation Zurich, 27 - 29 August 2007 Jürg Gerber, COO, WBCSD, Geneva

DEDICATED TO MAKING A DIFFERENCE

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WBCSD Work Program and 2 Examples WBCSD Eco-Efficiency Sustainable Consumption and Production WBCSD Sustainable Value Chain Agenda

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3 LCM Zurich WBCSD 28 Aug 07 Ge OSCE WBCSD Prague 22 May 07 Ge

Coalition of 200 leading companies

  • Total turnover: USD 5,200 billion
  • Market capitalization = USD 6,000 billion
  • Total member company employees = 12 million
  • Global outreach

3 billion customers per day use products and services from WBCSD member companies

Water EE in Buildings Forest Prod. Mining Cement Mobility Electricity Utilities Chemicals Tires Supply Chain Eco Patents Commons

WBCSD objectives include:

  • Business Leadership
  • Policy Development
  • The Business Case
  • Best Practice
  • Global Outreach

Regional Network

WBCSD Work Program – the starting point

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Geographic Overview of WBCSD Members

Europe-EU North America (incl. Mexico) Asia (Japan & South Korea) Asia - Other Europe - Other Latin America Central & Eastern Europe Oceania Africa Middle East

EU 67 Japan & South Korea 32 North America (incl. Mexico) 49

EU, NA and Japan & Korea : 77% Regional Network: a counterbalance

Asia

  • ther 10
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Member Companies by Sector

Utilities & Power Mining & Metals Oil & Gas Cement Chemicals Consumer Goods Forestry & Paper products Banks & Insurance Services Auto Tires IT & Telecoms Construction Engineering Food & Beverages Healthcare Water Services Media Retail Airlines

17 16 16 13 13 13 13 12 12 11 11 9 7 7 7 4 3 2 2 1

No sector represents more than 17 members

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WBCSD Regional Network (60 councils)

BCSD China BCSD New Zealand WASIG W.Australia BCA Australia BCSD Malaysia BCSD Thailand PBE Philippines Keidanren Japan BCSD Korea BCSD Sri Lanka BCSD India CII BCSD Mongolia Vernadsky Foundation Russia The Excel Partnership Canada CGLI USA/Canada US BCSD BCSD Gulf of Mexico BCSD Mexico AED Costa Rica IntegraRSE Panama BCSD Venezuela BCSD Bolivia BCSD Brazil BCSD Argentina AcciónRSE Chile NBI South Africa FEMA Mozambique BCSD Zimbabwe BCSD Nigeria AEEC Egypt APEQUE Algeria BCSD Paraguay Perú 2021 BCSD Ecuador BCSD Colombia BCSD El Salvador BCSD Honduras BCSD Guatemala NHO-Norway BCSD UK Econsense Germany FE-BCSD Spain BCSD Portugal BCSD Hungary BCSD Czech Republic EPE France BCSD Turkey BCSD Austria BCSD Kazakhstan BEC Hong Kong BCSD Taiwan UNIRSE-Nicaragua DERES Uruguay Danisch CSBD BCSD Pakistan

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  • 1. Water Facts and Trends
  • 2. Collaborative Actions for

Sustainable water mgt

  • 3. Water Scenarios

2004 2006 2025 2006-2008 Complementary Workstreams

  • 2. Using Water Scenarios (and other tools)
  • 1. Water Metrics / Footprint

Example WBCSD Water Project

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Which legacies need to be un- locked to enable more sustai- nable water practices and more appropriate solutions? Who should have a seat at the table for fair water allocation and why? What could be a governance Structure for a more holistic water management and what could trigger it being set up?

Questions for discussions

WBCSD Global Water Scenarios to 2025

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Call to action on water - key parameters

confirmed by WEF 2007 AM workshops

Footprint

Awareness on company / supply chain dimensions

Quantity and Quality

Water basin / catchment approach, IWRM

Regulation and Governance

Mobilise communities, RDB‘s etc

Implementation processes for improvements

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The efforts builds upon the storyline and messages of our previous publications as it explores policy ideas and concepts for the transition to a low-carbon economy. Its primary goal is to identify and explore policy options to sustain economic growth while transforming the ways we access, produce and consume energy. It is not meant to lay out a set of ‘must do’ policy approaches.

Example WBCSD Energy & Climate

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Oil Biomass Gas Coal Nuclear Renewables

Primary Energy

Liquids Direct combustion Industry and Manufacturing Mobility

Final Energy

Consumer Choices

Energy Energy Energy

Buildings Power Generation

Five “Megatrends” in our energy system

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WBCSD work on eco-efficiency

1992: WBCSD created the concept of Eco- efficiency

Eco-efficiency is achieved by the delivery of competitively-priced goods and services that satisfy human needs and bring quality of life, while progressively reducing ecological impacts and resource intensity throughout the life cycle to a level in line with the earth’s carrying capacity.

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WBCSD work on eco-efficiency

WBCSD defined the three broad objectives

  • f eco-efficiency:

Reducing the consumption of resources, Reducing the impact on nature, Increasing product and service value.

WBCSD also described the four strands of eco-efficiency opportunities for business:

Re-engineer business processes, Re-valorise by-products, Re-design products and services, Re-think business markets.

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WBCSD work on eco-efficiency

1992-1997 Eco-efficiency 1995-1997 Environmental Performance & Shareholder Value 1997 Eco-efficiency: the business link to SD 1997 Signals of change

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WBCSD work on eco-efficiency

1996-2002 Sustainability through the Market 1997-2000 Eco-efficiency Metrics & Reporting 1998-2000 European Eco-efficiency Initiative 2000-2002 Sustainable Development Reporting

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WBCSD work on eco-efficiency

2001 The Business Case for Sustainable Development 2002 Walking the Talk 2005 Eco-efficiency – Learning Module 2006 The role of Business inTomorrow’s society

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Principle approach

  • R

Reduces material intensity

  • E

Energy intensity is minimized

  • D

Dispersion of toxic substances is reduced

  • U

Undertakes recycling

  • C

Capitalizes on use of renewables

  • E

Extends product durability

  • S

Service intensity is increased

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WBCSD work on eco-efficiency

WBCSD defined a framework to measure progress towards economic and environmental sustainability. This framework provides a common set of definitions, principles and indicators (used for the successive updates of the Global Reporting Initiative guidelines).

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understand eco-efficiency concept and core indicators

select relevant supplemental indicators

collect data calculate eco- efficiency ratio communicate performance, set new targets

Steps to measuring and reporting

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Aspects Indicators

Category

Multiply broad area of environmental influence or business value e.g. environmental influence in creation of product General information related to category (the "what") e.g. material consumption, waste

  • utput

Specific measurement

  • f aspect (the "how")

e.g. tonnes material consumed, tonnes CO2 emitted

Eco-efficiency indicators framework

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Supplemental Indicators

Leading Company Indicators

Core Indicators

Aspects Indicators

Category

www.sdportal.org Will look different depending on sector, region, etc. e.g. VOC to air, PHM to surface water Highly relevant and meaningful on global scale to virtually all businesses e.g. energy consumption, GHG emissions

Eco-efficiency indicators framework

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WBCSD work on eco-efficiency

There has been a strong commitment of WBCSD’members over 13 years on this Eco-Efficiency agenda. More than 30 companies were engaged in the various working groups. More than 50 cases are available on the wbcsd.org website referring to Eco- Efficiency.

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Sustainable Consumption and Production

Marrakech Process was launched in the Johannesburg Plan of Implementation for actions at all levels to:

“Encourage and promote the development of a 10-year

frameworks of programmes in support of regional and national initiatives to accelerate the shift towards sustainable consumption and production to promote social and economic development within the carrying capacity of ecosystems by addressing and, where appropriate, de-linking economic growth and environmental degradation through improving efficiency and sustainability in the use of resources and production processes and reducing resource degradation, pollution and waste.”

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Sustainable Consumption and Production

Achieving sustainable consumption and production is a key challenge for the future. The ways in which products (goods and services) are delivered to our societies have become increasingly complex and global. Actions taken by designers, producers, their suppliers, consumers, and communities are all interlinked and can affect each other, and the global environment. We will not address the World’s challenges, nor we will achieve the Millenium Development Goals without Sustainable Consumption and Production.

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The fundamental role of business is to create wealth, provide goods and services, create jobs, pay taxes, innovate, invest, improve efficiency and act responsibly. The private sector is recognised as a key provider of solutions to global challenges.

The fundamental role of business

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To illustrate its commitment to SCP the WBCSD launched a new Initiative in January 2007 building on its previous Eco-efficiency programme: The Sustainable Value Chain Initiative

WBCSD’s new Initiative

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Today WBCSD is partnering with UNEP and SETAC in the context of the “Life Cycle Initiative” UNEP: United Nations Environment Programme SETAC: Society of Environmental Toxicology and Chemistry

WBCSD’s partners

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Part One of this initiative is focused on Product Stewardship. The overall objective is to promote, assist and support use of life cycle thinking and life cycle approaches by WBCSD member companies and by their suppliers, customers and value chain partners with the purpose of sustainable innovation and global trade of more sustainable products.

Sustainable Value Chain Initiative

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Life Cycle Thinking

It is about going beyond the traditional focus on production site and manufacturing processes so to include the environmental, social, and economic impact

  • f a product over its entire

life cycle.

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The life cycle

LCM Zurich WBCSD 28 Aug 07 Ge

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Source: GARC, Feb 07

Transport 28%

  • .a.Automotive16%

Building 31% Packaging 1% Other 11% Engineering and Cable 29%

(draft)

Total Products Stored in Use Since 1888 586.0 Finished Products (output) 40.4 Other Applications3 1.0 Fabricated and Finished Products (input) 67.4 Traded New Scrap7 8.6 Fabricator Scrap2 18.4 Traded New Scrap1 1.4 Ingots 68.8 Metal Losses 1.4 Not Recycled in 20068 3.5 Under Investigation4 3.7 Old Scrap 7.8 Bauxite5 179.5 Bauxite Residues 75.5 and Water 38.5 Alumina6 65.5

Values in millions of metric tonnes. Values might not add up due to rounding. Production stocks not shown 1 Aluminium in skimmings; 2 Scrap generated by foundries, rolling mills and extruders. Most is internal scrap and not taken into account in statistics; 3 Such as powder, paste and deoxidation aluminium (metal property is lost ) 4 Area of current research to identify final aluminium destination (reuse, recycling or landfilling); 5 Calculated based on IAI LCI report - update 2005. Includes, depending on the ore, between 30% and 50% alumina; 6 Calculated. Includes on a global average 52% aluminium; 7 Scrap generated during the production of finished products from semis; 8 Landfilled, dissipated into other recycling streams, incinerated, incinerated with energy recovery.

METAL FLOW Primary Aluminium used 34.0 MATERIAL FLOW Remelted Aluminium 34.8

  • .a.Recycled

Aluminium 16.4

Building 32% Transport 28%

  • .a.Automotive16%

Net Addition 2006: 24.4

Packaging 1% and Cable 28% Engineering Other 11%

Example: global aluminium flow 2006

LCM Zurich WBCSD 28 Aug 07 Ge

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Life Cycle Management

It is a systematic application of life cycle thinking in modern business practice with the aim to provide society with more sustainable goods and services by managing the total life cycle of an

  • rganisation’s product

portfolio.

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10 companies from 9 different sectors are part of the Core Team. More than 32 companies from 17 sectors are now engaged as Working Group members. 3 workstreams have been defined.

Sustainable Value Chain Initiative

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Workstream 1:

Explore how life cycle thinking can be best integrated in business processes

Workstream 2:

Engage with key external stakeholders to demonstrate the business commitment to use life cycle thinking

Workstream 3:

Support companies in their journey towards life cycle thinking

Sustainable Value Chain Initiative

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  • Emissions

management

  • Energy

management

  • Community investment
  • Municipality liaison
  • Education and training
  • Urban air/water quality
  • Taxation revenue
  • Regional

economic development

  • Impact of products

/ services

  • CO2 emission

policy

  • Supply chain in

developing countries

  • Impact of products

/ services TYPICAL ISSUES EASY FOR COMPANY TO INFLUENCE EASY FOR COMPANY TO INFLUENCE Direct impact of Operations / Facilities Micro-economic impact of Company on locality, region Micro-economic impact of Company on locality, region Global impact

  • f Company

Macro- economic impact of Company on region, country

Source:ADL/UITP/Alcan

Understanding stakeholder’s issues requires consideration of the boundaries of business influence

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Know who you’re partnering with in order to achieve and maintain good governance ..

.. will enable us to: 1) Build bridges and trust 2) Understand own strengths and limitations 3) Get most value out of each other

  • Be clear about system boundaries and responsibilities
  • e.g. business can offer capacity training, etc. not only

financial support

  • Eco-efficiency – life cycle approaches supported with

appropriate tools and standards are the baseline

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Thank you!

gerber@wbcsd.org www.wbcsd.org

DEDICATED TO MAKING A DIFFERENCE