Eco-Design Indicators Rhodia

7/25/2019 Eco-Design Indicators Rhodia

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Eco-design Indicators

For a more

Sustainable

Chemistry

Guy-Nol SAUVION

TM

Lyon - Sep 18, 2012


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2Internal Presentation: Q212 results

AGENDAThe Solvay Group

Our commitment to

Sustainability

Our Proprietary Indicators


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GROUP PRESENTATION COPYRIGHT 2011 SOLVAY SA nv 3

CREATING A MAJOR PLAYER IN CHEMISTRY

SOLVAY ACQUIRED

RHODIA, SEPTEMBER 2011

Offering a broad range of products that

contribute to improving quality of life and

the performance of its customers

A strong commitment to sustainabledevelopment with a clearfocus on

innovation & operational excellence

TOP 10 worldwide largest chemical player

EUR

12.7 billion

NET SALES

110MAJOR

INDUSTRIAL

SITES

29,000EMPLOYEES

EUR 2.1

billionREBITDA

EUR

825 million

NETINCOME


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Strong in fast growing regions

Highly diversified end-markets

Technology efficient new capacities

Innovation focused on sustainable

solutions for the future

OUR STRENGTHS


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GLOBAL LEADERSHIP POSITIONS

90% OF SALES AMONG THE TOP 3

#1Specialty

Polymers

,

&

,

#2Polyamide &

Intermediates

6

.

6

,

&

#1Essential

Chemicals

,

&

#1Silica & RareEarth Systems

-

,

#1ConsumerChemicals

,

&

#3Vinyls &Acetow

,


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DEVELOPING SUSTAINABLE SOLUTIONS FOR THE FUTURE

RESEARCH AND

DEVELOPMENT

Strengthening our innovative capabilities

EXTERNAL PARTNERSHIPS

Collaboration with academic partnerships, start ups

and venture capital funds to create synergies

Guaranteeing a seamless link between fundamental

and applied research

6 major innovation themes aligned with

megatrends:

sustainable energy solutions

renewable chemistry

nanotechnology & advanced materials

eco-efficient processes

organic electronics

consumer chemicals

12MAJOR

R&DCENTERS322

NEWPATENTS

54mIN

VENTURING

1,700R&D

EMPLOYEES

274mR&D


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SHAPING THE FUTURE

RESPONSIBILITY AT THE HEART OFOUR STRATEGY

A strong commitment to sustainable

development

Doing business in a responsible way,

with a clear focus on innovation and

operational excellence

BETTER SOLUTIONS FOR THEENVIRONMENT

Development of more competitive

technologies and processes

More advanced solutions for recycling

Conservation of natural resources &

reduction of emissions and waste


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Solar impulse invents the future

with Solvay

Image Jean Revillard


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Our commitment to

Sustainability



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The Rhodia Way: a 360 commitment

Introductio

n

Deployme

nt

Maturity

Performanc

e

1 2 3 4

The stages of

continuous improvement

The stakeholders

Customers

Employees

Environment

Investors

Suppliers

Communities

10

Reference framework integrated into our management processes

Individual and collective commitment of the Groups employees

Commitment toward our six stakeholders

Social and environmental approach. Reference framework implemented at all sites toassess and improve practices

Strictly controlled process audited by independent organizations

Rhodia Way will be expanded into Solvay Way and

become the Corporate Social Responsibility tool of the Group

Rhodia Way will be expanded into Solvay Way and

become the Corporate Social Responsibility tool of the Group


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Our commitments toward our stakeholders

CUSTOMERS

Develop more sustainable solutions for health and the

environment

EMPLOYEES

Guarantee employee health and safety, respect social rights

and develop employability

ENVIRONMENT

Introduction of processes to limit the impact of our activities

on the environment

INVESTORS

Guarantee the interests of shareholders with rigorous and

vigilent governance

SUPPLIERSInclude them in our sustainable development approach

COMMUNITIESAnticipate and manage industrial risks.

Communicate transparently

11


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The evaluation process

12


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0,0

1,0

2,0

3,0

4,0

1 - CLIENTS

2 - COLLABORATEURS

3 - ENVIRONNEMENT

4 - INVESTISSEURS

5 - FOURNISSEURS

6 - COMMUNAUTES

Rhodia 2007

Rhodia 2008

Rhodia 2009

Rhodia 2010

Rhodia 2011

Progression of the Sustainable Development approach

Level 1Introduction

Level 2Deployment

Level 3

Maturity

Level 4Performance

CUSTOMERS

EMPLOYEES

ENVIRONMENT

INVESTORS

SUPPLIERS

COMMUNITIES


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Rhodiaway: involvement of the R&D function

14

Chemical Industry has to face the expectations of all its stakeholders:

Changing Risks into Opportunities!

Chemical Industry has to face the expectations of all its stakeholders:

Changing Risks into Opportunities!

Risks

Industrial &

Social Risks

DenigrationAttacks

Boycott Shareholders

Environment

Suppliers Customers

Employees

Community Opportunities

Cost control

Customers loyalty

Internal enrolment

Innovation &business

Risks

Industrial &

Social Risks

DenigrationAttacks


Environment

Suppliers Customers

Employees


Cost control

Customers loyalty

Internal enrolment


Risks

Industrial &

Social Risks

DenigrationAttacks


Environment

Suppliers Customers

Employees


Cost control

Customers loyalty

Internal enrolment



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Environmental Evaluation: the 3E team

1. To become a relevant partner in the field

so as to act either defensively or proactively

2. To objectively assess the impact of ourprocesses and products at each step of life

cycle

3. To contribute to our customers process

environmental assessment

4. To promote production routes more

environmentally friendly

Vision MissionsVision Missions

Position our key processes and

products vs. our competitors

Propose simplified methods to

facilitate the selection of process

routes

Survey the changes of methods,norms and indicators


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Starting from Life Cycle Assessment

Solv

ay

LCA is a global

process

which impliesto collect

data far

beyond

Solvays

perimeter

LCA is a global

process

which implies

to collect

data far

beyond

Solvays

perimeter

The approach is consistent with this requirementThe approach is consistent with this requirement

SUPPLIERS

CUSTOMERS

ENVIRONMENT

EMPLOYEES

COMMUNITIESINVESTORS


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Method

17

Flows of input and output materials and energy at each stage of the life cycle are listed

to carry out an exhaustive assessment of:

the consumption of energy and natural resources

the emissions into the environment (air, water and soil)

Source ADEME


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Results

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The emission and consumption data is processed to assess the potential impact of theproduct on the environment: greenhouse effect, atmospheric acidification, exhaustion

of natural resources, etc.

LCA is therefore a multi criteria method.

Human Health

DALY

Ecosystem Quality

PDF x m x yr

Resources

MJ Primary

Climate Change

kg CO2 eq.

Global Warming

Non-Renewable energy

Mineral Extraction

Carcinogens

Non Carcinogens

Respiratory Inorganics

Respiratory Organics

Ionizing Radiations

Ozone Layer Depletion

Aquatic Eco-toxicity

Terrestrial Eco-toxicity

Terrestrial Acidification + nutrification

Land Occupation

kg CO2 eq.

MJ Primary

MJ Primary

kg q. C2H3Cl

kg q. C2H3Cl

kg q. PM 2,5

Kg q. C2H4

q. Bq C-14

kg q. CFC-11

kg q. TEG in water

kg q. TEG in soil

kg q. SO2

m org. arable

Exchange

with nature

InventoryFor 1 functional unit

Impact Categories Damage Categories

Classification

Classification

Modeling

Modeling

+

Example for classification:Impact 2002+ method


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Relevance of impact indicators

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All the indicators have not currently the same reliability. Therefore they are not used atthe same frequency

Source ADEME


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Raw Material

Extraction

From Nature

Production

of :

- Intermediate

products

- Energy

Product

Manufacture

Functional

Unit

Manufacture

Usage

- Destruction

- Storage

for Recycling+

CRADLE

GRAVE

GATE

Product Life

Functional Unit

=

1 unit ofPRODUCT

Cradle-to-Gate

Cradle-to-Grave

Functional Unit

=

a FUNCTION

Environmental impact: system and function(s)

Both assessments are relevantBoth assessments are relevant


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Life Cycle Assessment: Methodology & Tools

A standardized methodA standardized method Specific ToolsSpecific Tools

Simapro

Software

Base dinventaire Base dimpactEcoinvent Impact 2002

Inventory

DatabasesCharacterization

Methods

Ecoinvent IPCC 2007 GWP 100yImpact 2002

Simapro

Outputs

(mass

& energy)

Inputs

(mass

& energy)

Impact & Damage

Assessment

1 Goal & Scope definition

2 Inventory Analysis

3 Impact assessment

4 Interpretation

of the results

Life Cycle Assessment (LCA)

Principles and Framework ISO 14040 Requirements & Guidelines ISO 14044

Applications

Marketing

Strategy

Development

General methodology which needs

specific adaptations

Peer review is highly recommended

General methodology which needs

specific adaptations

Peer review is highly recommended


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ACDV* recommendations

22

-

1

Raw Materials

Distribution

Application

End of Life

Production

Source ACDV *ACDV: Association Chimie du Vgtal


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Considering Biogenic Carbon

23

2

2

BiogenicCarbon

Source ACDV


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Case study # 1

Polyamide 6 for compounding

Technyl CR 218 V30


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Rhodia Engineering PlasticsValeoPSA Peugeot Citron

Life-cycle Assessmentof the Peugeot 208s

Fan Motor Assembly

manufactured fromrecycled Technyl

June 2012


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constitute major challenges for todays automotive manufacturers.

Automobiles now comprise an average of 20% polymers=> 150 to 250 kg of plastic per vehicle.

The use of recycled plastics offers a response to these challenges.

Recycled polyamides: a significant means of reducingthe environmental impact of motor vehicles

Conserving

non-renewable resources

Saving

energy

Reducing

CO2 emissions

A response to environmental challenges


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Chemical

company

Plastic

compounderOEM Automaker

Polymer

chemistry

Compounding of

engineering plastics

Conversion

and assemblyInstallation and

marketing

Pooling of resources and expertise by a partnershipincluding all actors in the value chain

POLYMER TECHNYL COMPOUND MODULE NEW 208

Three actors in the automotive value chaincombine their know-how


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With the incorporation of 25% green materials out of total

vehicle polymer content (excluding rubber) of 170 kg

(versus 7% on the 207), the 208 has reached a new

milestone in eco-design.(PSA)

The 208 is equipped with a Fan Motor Assembly (FMA)

comprised of recycled Technyl by Rhodia.

The three partners commissioned a Life-cycle Assessment

(LCA) to evaluate the environmental benefit of this part.

Peugeot 208

Fan Motor AssemblyRecycled TechnylPolyamide 6

(30% reinforcement)

The LCA measured the environmental impactof the Fan Motor Assembly manufactured from recycled Technyl

Peugeot 208:Spotlight on eco-design


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Its mechanical properties and durability made it possible

to develop a part with the same weight and design

as parts made from new material

IDENTICAL MODULE WITH THE SAME TENSILE STRENGTH RETENTION OF TENSILE MECHANICAL PROPERTIES

AFTER 2,000H at 130C

Technyl C 218 V30 (non-recycled polyamide): Weight: 945g Relative density: 1.35

Technyl CR 218 V30 (recycled polyamide): Weight: 945g Relative density: 1.35

9,600 MPa

9,600 MPa

10,0005,0000

(in MPa = MegaPascals)

100%

50%

25%

0%

75%80% 75%

(%)

PSA requirements = 50%

Recycled TechnylCR 218 V30 by Rhodia:properties similar to those of non-recycled material


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Injection ofFan Motor Assembly

A single collaborative approach with a multi-criteria analysisreflecting the whole value chain

A single LCA(since design and weight are identical)

Production of RECYCLED Technyl

Production of NON-RECYCLED Technyl

Two different LCAs(since formulations are different)

Chemical

company

Plastic

compounderOEM Automaker + User

(

2

.

)

Seven environmental indicators reflected in the Life-cycle Assessment

A full Life-cycle Assessment

(

4

3

-

.

)

(

.

)

(

.

)

(

1 1

.

)

-

(

.

)


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The introduction of recycled polyamide significantly reduces

the environmental impact of the part throughout its life cycle

(by -9 to -28%) for all components assessed

A significant reduction in environmentalimpact over all indicators


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Dissemination in fresh water of the equivalentof 300 kg of phosphate, equivalent to

effluents linked to the cultivation of 50t of

wheat in France (6.7 ha).

Greenhouse gas emissions (in CO2 equivalent)by 400,000 cars traveling around the Paris ring

road.

Photochemical ozone production (inC2H4 equivalent) by 2,200,000 cars

traveling around the Paris ring road.

The emission of 3600 kg of SO2 eq. into the atmosphere,

equivalent to the emissions from the production of

2500 MWh by a coal power plant in Germany, about 400times the German annual per capita consumption (2009).

Consumption of 18 million mega joules of primary

energy, equivalent to the primary energy consumption

linked to the production of 1400 MWh of electricity in

France, or nearly 200 times the French annual per capitaconsumption (2009).

Examples of the environmental impact of the annual production* of Peugeot 208s equipped

with a FMA comprised of Rhodia recycled Technyl(instead of non-recycled Technyl):

* an estimated 400,000 vehicles per year

Environmental impact proportional tomass production

FMA with standard Technyl

FMA with Recycled Technyl

EUTROPHICATIONCLIMATE CHANGE

PHOTOCHEMICAL

OXIDATION

ACIDIFICATIONPRIMARY ENERGY CONSUMPTION

DEPLETION OF

THE OZONE

LAYER

DEPLETION

OF NON-RENEWABLE

RESOURCES


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A collaborative project ensuring an exhaustive study:

An environmental initiative conducted in partnership with all industrial actors on a

mass-produced motor vehicle

A comprehensive multi-criteria analysis of the vehicles entire life cycle submitted forcritical review by an independent expert.

Extremely positive results:

The performance qualities of recycled Technyl result in a design and durability

identical to designs using standard Technyl, leaving the environmental impact

resulting from its production or use unchanged

The full environmental benefit thus comes from the production of the recycledpolyamide

Positive environmental results over the full life cycle for all criteria evaluated

(i.e. a decrease ranging from 9-28% depending on the indicator).

Proactive collaboration leading toan advantageous environmental assessment


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Our commitment toSustainability


Sustainable Portfolio

Management: SPM

Sustainability Index: SI


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Indicator

An indicator is a tool for simplification, quantification & communication *

*Adama Ouattara, Thesis 2011, INPT: Mthodologie dco-conception de procds paroptimisation multi-objectif et aide la dcision multi-critre

Simplification: for a global view of the impacts

- find a compromise between a single-criterion analysis

and a comprehensive review of multiple impacts

Quantification: to make balanced decisions

- compare objectively new solutions vs. existing ones

Communication: to share data with stakeholders- enrol internal and external partners in our approach


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Found in literature: from the most simple

A + B C MW of G

C + D E /

E + F G MW of (A + B + D + F)

(%)

Amount of C in products

/

Amount of C in reactants

(%)

Total Waste / Total Products

(kg/kg)

E-factorE-factor

Carbon

efficiency

Carbon

efficiency

Atom

economy

Atom

economy

Limited to the reaction perimeter

Limited to mass or mol balances

Limited to the reaction perimeter

Limited to mass or mol balances


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to the most complicated

Economic, Environment & Societal impacts

are agregated in one single indicator

Economic, Environment & Societal impacts

are agregated in one single indicator

Source BASF


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Our commitment toSustainability



Management: SPM


SOLVAY GROUP

Whi h TOOL?


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Which TOOL?

Which METHODOLOGY?

SOLVAY GROUP

Sustainable Portfolio Management (SPM)


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Sustainable Portfolio Management (SPM)

Potential

vulnerability of our

operations and

upstream value chain

to rising costs from

sustainability related

issues

Operations

Vulnerability

Market Alignment

Products and solutions which

significantly and measurably helpcustomers and consumers to address

their own sustainable related needs

SOLVAY GROUP

Operations Vulnerability


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Operations Vulnerability

1. Produce an Ecoprofile

Cradle-to-Gate

Standardized format, following

guidelines from EcoInvent

2. Monetize the Ecoprofile

Authoritative external data,

shadow cost

3. Calculate the Operations Vulnerability

Monetized ecoprofile divided bythe average sales price of the

product in the applicationTotal sustainability

themes costs

Sales=

Operations

Vulnerability

External Cost =

Physical Impact

X

Shadow Cost

SOLVAY GROUP

Market Alignment


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Market Alignment

SOLVAY GROUP

Definitions of the SPM Matrix Action Zones


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(- -)

Definitions of the SPM Matrix Action Zones

Products in markets likely to

be negatively impacted by

Sustainability but, produced

through low impact

production chains

Products in markets likely

negatively impacted bySustainability and produced

through high impact

production chains

Products in markets with

strong Sustainability drivers

and produced through lowimpact production chains

Products in markets with

strong Sustainability drivers

but, produced through high

impact production chains

SOLVAY GROUP

Typical results chart


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Typical results chart

SOLVAY GROUP

AGENDA


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Our commitment inSustainability



Management: SPM


Project Cycle


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46 2007 G.P. Towler / UOP. For educational use in conjunction withSinnott & TowlerChemical Engineering Design only. Do not copy

Project Cycle

Design

Concept

Start-upConstructionProcurementDetailed

Design

As the project proceeds, costs accumulate and the overall cost estimate becomes more certain

Low

High

Cost

The earlier the better


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47 2007 G.P. Towler / UOP. For educational use in conjunction withSinnott & TowlerChemical Engineering Design only. Do not copy

The earlier, the better

Design

Concept

Start-upConstructionProcurementDetailed

Design

At the same time, the influence of design decisions on project costs decreases

Low

High

Cost

Design Influence

This creates an incentive to try to guide the design as early as possibleIn terms ofCost and Environmental Impact

TM

Cost structure and profitability criteria


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+

-Return on investment

NPV

Time

Cumulated net

cash flow

generated

Initial market launch10 years after the initial

market launch

-Return on investment

NPV

10 yearsTime

Cost structure and profitability criteria

1 year

2 3

1

Depreciation

Fixed Costs

Variable Costs158

72

308

78

Cash

Cost

Full

Cost

NPV (Net Present Value) =

VCI (Value Creation Index) # /

CFROI (Cash Flow Return On Investment) #

IRR (Internal Rate of Return) Capital

engaged

1

1 2

3

Coupling economic & environmental evaluations


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Based on the same process

description, 3E team delivers :

-The economic evaluation

-The environmental assessment

of the project

Environmental impact Assessment of developing productsrequires a simplified approach based on specific tools


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requires a simplified approach based on specific tools

- Processes and products under development for which data are not yet detailed- Preliminary assessments for selecting priorities for exhaustive assessments

qualitative simplified quantitative detailed quantitative

Continuous and consistent approach

Sustainability Index (SI)Qualitative / Quantitative (simplified)

Internally developed Tool

Initially designed forInnovation Projects Delivers elements for

a preliminary

positioning of our

products

Qualitative or simplifiedquantitative approach

Allows a quick visionReveals to be adequate

for existing products

Life Cycle Assessment

Methodology (LCA)

Standard Tool

For existing products &Processes

Commitment for a deep

analysis

Delivers values for

an argumented

externalcommunication

Founded on precise data

5

,

3

.

2

1 0

5

.

1 0

6

.

1 0

2

.

.

.

0

.

A single structure for Rhodia two tools :

Qualitative SI & Quantitative SI


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Qualitative SI & Quantitative SI

5 axes = the 5 components of the environmental impact followed throughout the project(refer to the 5 mainArea of ProtectionArea of Protection : AoP)

Comparative Assessment to a reference (e.g. competitor solution)

Impact reductionImpact degradation

Rhodia Sustainability Index (SI):A tool for assessing projets from phase 0 to phase 5


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A tool for assessing projets from phase 0 to phase 5

0

2

3

4

&

&

-

1

&

5

Mandatory tool : Qualitative SI

Full LCA

(critical review)

If proof of interest

Key tool : Quantitative SIPossible as soon as quantitative data are available

Recommended as soon as results from qualitative assessment evidence a need

for a deeper investigation

Provide arguments for making a decision about interest for a LCA

Qualitative SI & Quantitative SI provide a coherent

assessment all along the project life and with LCA

Qualitative SI & Quantitative SI provide a coherent

assessment all along the project life and with LCA

Rhodia SI : qualitative assessment


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Questionnaires :

20 questions for production steps20 questions for applications steps and end of life

Answer to each question = quotation :

-2 if product establishes a major

improvement as compared to the reference

-1 if product establishes a significant

improvement as compared to the reference

0 if product is similar to the reference

+1 if product establishes a significant

degradation as compared to the reference

+2 if product establishes a major

degradation as compared to the reference.

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Positioning is implemented answering a series of questions, distributed over the 5 axes

Production & Application steps are both analyzed, separately, with the same format

Distribution

matrix


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Rhodia SI : quantitative assessmentA t l f t t d t j t t i t f d d t


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5555

From a quantitativeinventory of

inputs/outputs

quotation of theenvironmental impact

as compared to thereference

A tool for team to respond to project team requirement for deepened assessment

-

&

(

)

Rhodia method for assessing project environmental impact and

its toolbox Sustainability Index were reviewed by PwC.


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5656

&

PwC consider that the 3Emethod, developed by Rhodia, fulfills the objective of providing

project teams with a complete and consistent system for environmental evaluation of

Innovation Projects. The accuracy level of the evaluations is adapted to the level of acquired

knowledge for the developing product at the time of evaluation.

By establishing the Qualitative SI as a deliverable for the project tollgates within Rhodia

Innovation Project Management process and by guiding action plans according to identified

risks & opportunities as far as environmental impact is concerned, PwC recognize this method

as aiming at orientating the development of new products towards more environment friendlysolutions and, as such, as being an eco-conception approach.

Qualitative Rhodia SI: the reference tool for a RhodiaWay

practice: Innovating while incorporating CSR


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5757

practice: Innovating while incorporating CSR

Associated metrics

% of innovation Projects evaluated according to SI method% of innovation Projects selected according to SI method

Number of LCA realized

Associated tools

Innovation management guidelines Database ICPM

Sustainability Index

2012 target: 90% of all innovation projects evaluated 2012 target: 90% of all innovation projects evaluated


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5858

Case study # 2

Oil extraction Additive

Jaguar CMHP

Process description for Jaguar CMHP*


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5959

&

inputs outputs

inputs outputs inputs outputs

inputs outputs

inputs outputs

inputs outputs inputs outputs

Inventory of inputs and outputs exchanged with nature for

all the processes necessary to the production of 1 unit of CMHP

* CarboxyMethylHydroxyPropyl (CMHP) Guar

India

Vernon, USA

Guar Split modeling from literature data


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Cultivation

Harvest

Transportation

Split

extraction

Transportation

Split at

Vernon

inputs outputs

inputs outputs

inputs outputs

inputs outputs

inputs outputs

A cradle-to-gate assessment has been

performed

(including impacts due to

cultivation processes)

,

(

,

,

)

(

)

Perspectives at Vernon


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6161

2 0 0 7

6

%

2

4 %

-

2 0 1


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Key Learnings


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6363

Now this is not the end.It is not even the beginning of the end.

But it is, perhaps, the end of the beginning. *

* Sir Winston Churchill: Speech in Nov. 1942

Moving for Sustainability requires the involvement of all the entities of theCompany

- must be embedded in a global CSR programme

Eco-evaluation is now a state-of-the-art, but there is still room for

improvement- data bases update

- social aspects

Eco-design is a major step beyond

- 2 to 5 years will be necessary to evaluate the impact on the

products portfolio


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Thanks for your attention!

Documents

Eco-Design Indicators Rhodia