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Eco-design Indicators For a more Sustainable Chemistry Guy-Noël SAUVION TM Lyon - Sep 18, 2012

Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

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Page 1: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

Eco-design Indicators

For a more

Sustainable

Chemistry

Guy-Noël SAUVION

TM

Lyon - Sep 18, 2012

Page 2: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

2Internal Presentation: Q2’12 results

AGENDA

The Solvay Group

Our commitment to

Sustainability

Our Proprietary Indicators

Page 3: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

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 sustainable

development with a clear focus on

innovation & operational excellence

TOP 10 worldwide largest chemical player

EUR

12.7 billionNET SALES

110MAJOR

INDUSTRIAL

SITES

29,000EMPLOYEES

EUR 2.1

billionREBITDA

EUR

825 millionNET

INCOME

Page 4: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

GROUP PRESENTATION COPYRIGHT 2011 – SOLVAY SA nv 4

Strong in fast growing regions

Highly diversified end-markets

Technology efficient new capacities

Innovation focused on sustainable

solutions for the future

OUR STRENGTHS

Page 5: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

GROUP PRESENTATION COPYRIGHT 2011 – SOLVAY SA nv 5

GLOBAL LEADERSHIP POSITIONS

90% OF SALES AMONG THE TOP 3

#1Specialty

Polymers

H ig h Ba r r ie rPo ly m e r s,H ig h– Pe r fo r m a n ceE n g i n e e r i n g Po ly m e r s& Co m p o u n d s,F l u o r i n a te dPo ly m e r s #2Polyamide &

Intermediates

P A 6. 6 Po ly m e r s,I n te r m e d i a te s &E n g i n e e r i n gP l a s t i c s#1Essential

Chemicals

Hy d ro g e n Pe ro x i d e ,So d a A s h &So d i u mB i ca r bo n a te#1

Silica & Rare

Earth Systems

H ig h- Pe r fo r m a n ceS i l i ca s,Ra re Ea r t h s Sy s te m s #1Consumer

Chemicals

S pe c i a l tyS u r fa c ta n t s,P h o s p h o r u sC h e m i s t ry &D i p h e n o l s #3Vinyls &

Acetow

P V C, Ce l l u l o seA ce ta te F i be r

Page 6: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

GROUP PRESENTATION COPYRIGHT 2011 – SOLVAY SA nv 6

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&D

CENTERS322NEW

PATENTS

€ 54mIN

VENTURING

1,700R&D

EMPLOYEES

€ 274mR&D

Page 7: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

GROUP PRESENTATION COPYRIGHT 2011 – SOLVAY SA nv 7

SHAPING THE FUTURE

RESPONSIBILITY AT THE HEART OF OUR 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 THE ENVIRONMENT

Development of more competitive

technologies and processes

More advanced solutions for recycling

Conservation of natural resources &

reduction of emissions and waste

Page 8: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

GROUP PRESENTATION COPYRIGHT 2011 – SOLVAY SA nv 8

Solar impulse invents the future

with Solvay

© Image Jean Revillard

Page 9: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

GROUP PRESENTATION COPYRIGHT 2011 – SOLVAY SA nv 9

AGENDA

The Solvay Group

Our commitment to

Sustainability

Our Proprietary Indicators

Page 10: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

The Rhodia Way: a 360° commitment

Introduction

Deployment

Maturity

Performance

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 Group’s employees

• Commitment toward our six stakeholders

• Social and environmental approach. Reference framework implemented at all sites to assess 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

Page 11: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

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

SUPPLIERS

Include them in our sustainable development approach

COMMUNITIES

Anticipate and manage industrial risks.

Communicate transparently

11

Page 12: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

The evaluation process

12

Page 13: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

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 3Maturity

Level 4Performance

CUSTOMERS

EMPLOYEES

ENVIRONMENT

INVESTORS

SUPPLIERS

COMMUNITIES

Page 14: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

14

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

Denigration

Attacks

Boycott Shareholders

Environment

Suppliers Customers

Employees

Community Opportunities

Cost control

Customers loyalty

Internal enrolment

Innovation &business

Risks

Industrial &

Social Risks

Denigration

Attacks

Boycott Shareholders

Environment

Suppliers Customers

Employees

Community Opportunities

Cost control

Customers loyalty

Internal enrolment

Innovation &business

Risks

Industrial &

Social Risks

Denigration

Attacks

Boycott Shareholders

Environment

Suppliers Customers

Employees

Community Opportunities

Cost control

Customers loyalty

Internal enrolment

Innovation &business

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1515

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 our

processes 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

Page 16: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

1616

Starting from Life Cycle Assessment

Solvay

LCA is a global

process

which implies

to collect

data far

beyond

Solvay’s

perimeter

LCA is a global

process

which implies

to collect

data far

beyond

Solvay’s

perimeter

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

SUPPLIERS

CUSTOMERS

ENVIRONMENT

EMPLOYEES

COMMUNITIESINVESTORS

Page 17: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

17

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

Page 18: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

18

Results

18

The emission and consumption data is processed to assess the potential impact of the

product 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 m² 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 éq. C2H3Cl

kg éq. C2H3Cl

kg éq. PM 2,5

Kg éq. C2H4

éq. Bq C-14

kg éq. CFC-11

kg éq. TEG in water

kg éq. TEG in soil

kg éq. SO2

m² org. arable

Exchange

with nature

InventoryFor 1 functional unit

Impact Categories Damage CategoriesClassification

Classification

Modeling

Modeling

+

Example for classification:

Impact 2002+ method

Page 19: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

19

Relevance of impact indicators

19

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

the same frequency…

Source ADEME

Page 20: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

20

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 of PRODUCT

Cradle-to-Gate

Cradle-to-Grave

Functional Unit

=

a FUNCTION

Environmental impact: system and function(s)

Both assessments are relevantBoth assessments are relevant

Page 21: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

2121

Life Cycle Assessment: Methodology & Tools

A standardized methodA standardized method Specific ToolsSpecific Tools

Simapro

Software

Base d’inventaire Base d’impactEcoinvent Impact 2002

Inventory

DatabasesCharacterization

Methods

EcoinventIPCC 2007 GWP 100y

Impact 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

Page 22: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

22

ACDV* recommendations

22

M in im u m :fr om c r a d le- t o g a te1 kg

C l im a te C h a n g eNo n Re n e w a b l e E n e r gyB io g e n ic C a r bo nP r io r i tyAc c o r d i n g to m a s s

Raw Materials

Distribution

Application

End of Life

Production

Source ACDV *ACDV: Association Chimie du Végétal

Page 23: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

23

Considering Biogenic Carbon

23

COCO22 fossilfossil

COCO22 fossilfossil

COCO22 fossilfossilCOCO22 fossilfossil

COCO22 fossilfossil

Re n e w a b l eRe n e w a b l eE n e r g yE n e r g yFo r m u la t i o nFo r m u la t i o nFo r m u la t i o nFo r m u la t i o nE n d o fU s eE n d o fU s eE n d o fU s eE n d o fU s e

P l a n t COCO22

biogenicbiogenicT ra n s fo r ma t i o nT ra n s fo r ma t i o nT ra n s fo r ma t i o nT ra n s fo r ma t i o nNon Non RenewableRenewable ResourcesResources

COCO22

biogenicbiogenicR e c y c l i n gR e c y c l i n gR e c y c l i n gR e c y c l i n gAp p l i ca t i o nA p p l i ca t i o nAp p l i ca t i o nA p p l i ca t i o n

COCO22 fossilfossil

COCO22 fossilfossil

C O2e m i t te dC O2t r a p pe d

F o s s i l r o u teBiogenic Carbon

B i o r o u te B i o r o u tew i t h C a r b ont r a p

Source ACDV

Page 24: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

2424

Case study # 1

Polyamide 6 for compounding

Technyl® CR 218 V30

Page 25: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

Rhodia Engineering PlasticsValeoPSA Peugeot Citroën

Life-cycle Assessment

of the Peugeot 208’s

Fan Motor Assembly

manufactured from

recycled Technyl®

June 2012

Page 26: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

26

…constitute major challenges for today’s 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 reducing

the environmental impact of motor vehicles

Conserving

non-renewable resources

Saving

energy

Reducing

CO2 emissions

A response to environmental challenges

Page 27: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

27

Chemical

company

Plastic

compounderOEM Automaker

Polymer

chemistry

Compounding of

engineering plastics

Conversion

and assemblyInstallation and

marketing

Pooling of resources and expertise by a partnership

including all actors in the value chain

POLYMER TECHNYL COMPOUND MODULE NEW 208

Three actors in the automotive value chain combine their know-how

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28

“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 Assembly

Recycled Technyl® Polyamide 6

(30% reinforcement)

The LCA measured the environmental impact

of the Fan Motor Assembly manufactured from recycled Technyl®

Peugeot 208:Spotlight on eco-design

Page 29: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

29

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 130°C

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 Technyl® CR 218 V30 by Rhodia:properties similar to those of non-recycled material

Page 30: Guy-Noël SAUVION Eco-design Indicators · organic electronics consumer chemicals 12 MAJOR R&D 322 CENTERS NEW PATENTS €54m IN VENTURING 1,700 R&D EMPLOYEES €274m ... Environment

30

Injection of

Fan Motor Assembly

A single collaborative approach with a multi-criteria analysis

reflecting 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

A c i d i f i ca t i o n( kg S O 2 Eq u iv . )= c o n tr i bu t i o nt o a c i d r a i n

Seven environmental indicators reflected in the Life-cycle Assessment

A full Life-cycle Assessment

E u t ro p h i ca t i o n( kg P O4 3- Eq u iv . )= d is tu r b a n c eo f a qu a t i c e n v ir o n m e n ts

P h o to c h e m i ca lo x i d a t i o n( kg e t hy l e n eEq u iv . )= c o n tr i bu t i o n t oo z o n e p e a k s i na m b i e n t a ir

C l i m a tec h a n g e( kg C O2 Eq u iv . )= g r e e n h ou s e g a se m is s i o n s

De p l e t i o no f t h e o z o ne l a y e r( kg C F C 1 1 Eq u iv . )= a g g r a v a t i o n o f t h eh o l e i n t h e o z o n e l a y e rP r i m a rye n e rg y c o n s u m p t i o n(M Jo fp r im a r y e n e r g y )= c o n s u m p t i o no f t e r r e s tr i a le n e r g y r e s ou r c e s

De p l e t i o no f n o n- re n e wa b l ere so u r ce s( kg S b Eq u iv . )= d e p l e t i o n o ff o s s i l a n dm i n e r a l r e s ou r c e s

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31

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 environmental impact over all indicators

Ne w F M A Re c y c le dF M A Ne w F M A Re c y c le dF M A Ne w F M A Re c y c le dF M A Ne w F M A Re c y c le dF M A Ne w F M A Re c y c le dF M A Ne w F M A Re c y c le dF M A Ne w F M A Re c y c le dF M A

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32

Dissemination in fresh water of the equivalent

of 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 (in

C2H4 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 400

times 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 capita

consumption (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 to mass 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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33

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 vehicle’s entire life cycle submitted for

critical 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 recycled

polyamide

• 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 to an advantageous environmental assessment

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34

AGENDAThe Solvay Group

Our commitment to

Sustainability

Our Proprietary Indicators

• Sustainable Portfolio

Management: SPM

• Sustainability Index: SI

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3535

Indicator

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

* Adama Ouattara, Thesis 2011, INPT: Méthodologie d’éco-conception de procédés par

optimisation multi-objectif et aide à la décision multi-critère

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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3636

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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3737

…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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38

AGENDAThe Solvay Group

Our commitment to

Sustainability

Our Proprietary Indicators

• Sustainable Portfolio

Management: SPM

• Sustainability Index: SI

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39

SOLVAY GROUP

Which TOOL?

Which METHODOLOGY?

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40

SOLVAY GROUP

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 help

customers and consumers to address

their own sustainable related needs

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SOLVAY GROUP

41

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 by

the average sales price of the

product in the applicationTotal sustainability

themes costs

Sales=

Operations

Vulnerability

External Cost =

Physical Impact

X

Shadow Cost

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SOLVAY GROUP

42

Market Alignment

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SOLVAY GROUP

43

(- -)

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 by

Sustainability and produced

through high impact

production chains

Products in markets with

strong Sustainability drivers

and produced through low

impact production chains

Products in markets with

strong Sustainability drivers

but, produced through high

impact production chains

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SOLVAY GROUP

44

Typical results chart

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SOLVAY GROUP

45

AGENDAThe Solvay Group

Our commitment in

Sustainability

Our Proprietary Indicators

• Sustainable Portfolio

Management: SPM

• Sustainability Index: SI

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46© 2007 G.P. Towler / UOP. For educational use in conjunction with

Sinnott & Towler Chemical 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

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47© 2007 G.P. Towler / UOP. For educational use in conjunction with

Sinnott & Towler Chemical 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 of Cost and Environmental Impact

TM

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48

+

-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

Full Cost

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

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49

Coupling economic & environmental evaluations

Based on the same process

description, 3E team delivers :

-The economic evaluation

-The environmental assessment

of the project

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50

Environmental impact Assessment of developing products 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 for

Innovation Projects Delivers elements for

a preliminary

positioning of our

products

Qualitative or simplified

quantitative 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

external

communication

Founded on precise dataC l i m a te C h a n ge 5, 3 k g éq. C O2Re s o u r ce s 1 2 0 M JH u m a n H e a l t h 5. 1 0- 6 D A L YE c o s y te m Q u a l i t y 2. 1 0- 2 P D F. m ². y rW a te r I m p a c t 6. 0 é q. m 3

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51

A single structure for Rhodia two tools :

Qualitative SI & Quantitative SI

5 axes = the 5 components of the environmental impact followed throughout the project

(refer to the 5 main Area of Protection Area of Protection : AoP)

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

Impact reductionImpact degradation

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52

Rhodia Sustainability Index (SI):A tool for assessing projets from phase 0 to phase 5 p ha s e 0 p ha s e 2 p ha s e 3 p ha s e 4Sc o u t i n g Pr o c e s s T e c h n o l o g y& Da ta Ac q u i s i t i o n P i l o t O p e r a t i o n &Sc a l e- U p I n d u s tr i a l iz a t i o np ha s e 1F e a s i b i l i t y I n d u s tr i a l &C o m m e r c i a lP r o d u c tC o m m e r c i a l iz a t i o np ha s e 5

Mandatory tool : Qualitative SI

Full LCA (critical review)

If proof of interest

Key tool : Quantitative SI•Possible 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

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53

Rhodia SI : qualitative assessment

Questionnaires :

•20 questions for production steps

•20 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.

53

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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54

RHODIA Qualitative SI :

Tool structure (supported by an Excel® file)

54

1) answer the questions with your current knowledge (your knowledge at the date);

2) use the chart below as a reference for possible answers;

3) for each group of 2 questions you have to choose only one answer;

4) if the information is unknown to date, the answer should be 0;

5) you should take into account potential opportunities and risks.6) Only light green cells can be modified or filled-in

major improvement versus benchmark

significant improvement versus benchmark

no change versus benchmark

significant degradation versus benchmark

major degradation versus benchmark

Results

Climate change

Non-Renewable Resources consumption

Human health

Ecosystem quality

Water Management

QUESTIONS -2 -1 0 1 2

1 consommation d'énergie fossile à l'utilisation No Answer

0 0 0 0 0

2 efficacité (kg/fonction) dans la fonction d'usage No Answer

0 0 0 0 0

3 volatilité No Answer

0 0 0 0 0

4efficacité (kg/fonction) dans la transformation du produit

finiNo Answer

0 0 0 0 0

5 gestion de l'eau (transformation / utilisation) No Answer

0 0 0 0 0

6 durabilité du marché No Answer

0 0 0 0 0

7 biodégradabilité No Answer

0 0 0 0 0

8ecotoxicité des produits de dégradation (utilisation et/ou

fin de vie)No Answer

0 0 0 0 0

9 toxicité du produit No Answer

0 0 0 0 0

10 eco-toxicité du produit No Answer

0 0 0 0 0

11toxicité des produits de dégradation (utilisation et/ou fin

de vie)No Answer

0 0 0 0 0 projet

12 consommation d'énergie fossile à la transformation No Answer

0 0 0 0 0 projet

13 durée de vie en utilisation No Answer

0 0 0 0 0 projet

14 teneur du produit en carbone bio-sourcé No Answer

0 0 0 0 0 projet

15 recyclabilité du produit fini No Answer

0 0 0 0 0 projet

16 valorisation énergétique du produit fini No Answer

0 0 0 0 0 projet

17 concentration du produit fini en matière active No Answer

0 0 0 0 0 projet

18 émission de GES à l'utilisation No Answer

0 0 0 0 0 projet

19 gestion du transport du produit / produit fini No Answer

0 0 0 0 0 projet

20 réparabilité du produit fini No Answer

0 0 0 0 0 projet

un produit générant des produits toxiques lors de sa destruction constitue une

dégradation

Answer the questions below for the application steps of the product life using the

following advices:

un produit plus efficace dans la fabrication du produit fini (pour une même

fonction) constitue une amélioration

un produit de même efficacité remplaçant un produit toxique constitue une

amélioration

un produit qui conduirait à la création d'un besoin artificiel constituerait une

dégradation.

un produit de même efficacité remplaçant un produit ecotoxique constitue une

amélioration

Guide

0

un produit biodégradable est une amélioration

guide

un produit conduisant à une moindre consommation d'énergie dans son

utilisation (pour une même fonction) constitue une amélioration.

0

comments

0

Un produit plus efficace (quantité moindre pour une même fonction) constitue

une amélioration

un produit permettant plus aisément de réparer un produit fini est une

amélioration

un produit permettant l'optimisation du transport (densité, concentration,

emballage, …) est une amélioration

un produit plus concentré constitue une amélioration

un produit émettant moins de GES lors de son utilisation ou sa fin de vie (hors

CO2 biogénique des produits bio-sourcés, traité à la question 14) est une

amélioration.

un produit autorisant une valorisation énergétique en fin de vie constitue une

amélioration

un produit plus recyclable constitue une amélioration

un produit assurant une même fonction pendant un temps plus long constitue

une amélioration

une plus grande teneur en produit bio-sourcé constitue une amélioration.

un produit conduisant à une moindre consommation d'énergie dans la

fabrication du produit fini constitue une amélioration.

Un produit plus volatil (pertes par évaporation) constitue en général une

dégradation

un produit conduisant à une moindre consommation d'eau dans la fabrication

ou dans l'utilisation du produit fini constitue une amélioration.

un produit générant des produits ecotoxiques lors de sa destruction constitue

une dégradation

-2

0,00

0,00

0,00

0,00

0,00

0

0

2

1

0

0

0

-1

-3,00

-2,00

-1,00

0,00

1,00

2,00Climate change

Non-Renewable

Resourcesconsumption

Human healthEcosystem quality

Water Management

Gate-to-Grave Qualitative Index (application)

0 0

0

Market :

updated :

Application steps & end of life

1) answer the questions with your current knowledge (your knowledge at the date);

2) use the chart below as a reference for possible answers;

3) for each group of 2 questions you have to choose only one answer;

4) if the information is unknown to date, the answer should be 0;

5) you should take into account potential opportunities and risks.6) Only light green cells can be modified or filled-in

major improvement versus benchmark

significant improvement versus benchmark

no change versus benchmark

significant degradation versus benchmark

major degradation versus benchmark

Results

Climate change

Non-Renewable Resources consumption

Human health

Eco-system quality

Water management

QUESTIONS -2 -1 0 1 2

1 consommation d'énergie fossile No Answer

0 0 0 0 0

2 rejets aqueux No Answer

0 0 0 0 0

3 rejets atmosphériques (VOC, Toxiques et Ecotoxiques) No Answer

0 0 0 0 0

4 recours à des matières premières bio-sourcées No Answer

0 0 0 0 0

5déforestation induite par la culture des matières

premières végétalesNo Answer

0 0 0 0 0

6 matières premières classifiées toxiques No Answer

0 0 0 0 0

7 matières premières classifiées eco- toxiques No Answer

0 0 0 0 0

8 émissions de sous-produits GES No Answer

0 0 0 0 0

9 consommation d'énergie renouvelable No Answer

0 0 0 0 0

10 recours à des lavages poussés No Answer

0 0 0 0 0

11 valorisation des sous-produits No Answer

0 0 0 0 0

12 nombre d'étapes (cradle-to-gate) pour accéder au produit No Answer

0 0 0 0 0 projet

13 recours au charbon pour la génération d'énergie No Answer

0 0 0 0 0 projet

14 séchages intensifs No Answer

0 0 0 0 0 projet

15 utilisation d'eau dans des régions de fort stress hydrique No Answer

0 0 0 0 0 projet

16 nécessité de refroidissement intensif No Answer

0 0 0 0 0 projet

17génération de déchets non valorisés

(mise en décharge)No Answer

0 0 0 0 0 projet

18 génération de déchets incinérés sans valorisation No Answer

0 0 0 0 0 projet

19 recours à des matières premières recyclées No Answer

0 0 0 0 0 projet

20 synthèse en milieu aqueux No Answer

0 0 0 0 0 projet

2

1

0

0

0

0

0,00

0,00

0,00

0,00

0

GuideAnswer the questions below for the production steps (including manufacture of the

raw materials) using the following advices:

-2

-1

0

0,00

un plus grand recours à des matières premières recyclées est une

amélioration

une plus grande utilisation d'eau à la synthèse est une dégradation.

un plus grand nombre d'étapes est une dégradation

0

0

guide comments

une plus grande production de déchets est une dégradation

une plus grande production de déchets est une dégradation

le positionnement du site de production dans une zone de stress hydrique

constitue une dégradation

le recours à des synthèses à haute température et nécessitant un

refroidissement intensif est une dégradation

la nécessité de procéder à un séchage poussé du produit (surtout par

évaporation) est une dégradation

des rejets plus importants constituent une dégradation

des rejets plus importants constituent une dégradation

une plus grande consommation est une dégradation

le remplacement de matières premières classifiées est une amélioration

une plus grande consommation d'énergie renouvelable, en remplacement

d'une énergie fossile, est une amélioration.

les GES (gaz à effet de serre) sont : CO2, N2O, CH4, HFCs, PFCs, SF6

le remplacement de matières premières classifiées est une amélioration

un recours accru aux produits bio-sourcés est une amélioration

les effets négatifs sont pris en compte dans la matrice de traduction sur les

composantes de l'impact environnemental

un recours à une déforestation plus importante est une dégradation

l'utilisation du charbon pour produire l'énergie au lieu d'une autre siource

fossible constitue une dégradation

une plus grande valorisation (énergétique ou par recyclage) est une

amélioration

l'augmentation de lavages du produit est une dégradation

-3

-2

-1

0

1

2Climate change

Non-Renewable Resourcesconsumption

Human healthEco-system quality

Water management

Cradle-to-Gate Qualitative Sustainablity Index (production)

0 0

0

Market :

updated :

Production steps

Questionnaires to be

filled-in

Product Benchmark GUIDELINES

Notes :

General

comments on

products

description

Details on (if relevant for the assessment) :

- sourcing

- end of life

- specific performances

- manufacturing process

- application & function

Societal & ethics

features

Positive as w ell as negative impacts have to be reported :

- sourcing in developing countries (impact on average wages)

- children's labor at suppliers (from cradle)

- health and safety conditions at suppliers

- ethics : tests on animals for raw materials ; if yes : is there an alternative ?

- deforestation

- application : impacts on addiction

This list is not exhaustive but must push to a deep analysis of all potential societal

impacts, in order to prepare the construction of a comprehensive index

Eventual missing

features in the

questionnaire for

environmental

impact

Give details about the expected (according to your know ledge) eff ect on the overall

assessment

only green cells can be filled in

Additional infos on

sustainability

questions answers guides comments

Project identification

& summary of

results

Fully locked document, only to be modified by 3E30 min to learn

2 hrs to fill-in

30 min to learn

2 hrs to fill-in

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5555

From a quantitative inventory of

inputs/outputs

quotation of the environmental impact as compared to the

reference

Rhodia SI : quantitative assessment

A tool for team to respond to project team requirement for deepened assessmenti n v e n to r y da ta ba s e s m e t h o d s o fc ha ra c t e r iz a t i o nF i n i s h e d P ro du c tCo - P ro du c t sI n t e r m e d i a t e sE n e r g y & U t i l i t i e sWa t e rE m i s s i o n s to a i rE m i s s i o n s to wa t e rWa s t e t r ea t m e n tT ra n s p o r ta t i o nInv en tor yoffl ow s

(n atur e<== > s ystem ) I m pa c t s :C CNR EH HE QW M

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5656

Rhodia method for assessing project environmental impact and

its toolbox “Sustainability Index”were reviewed by PwC.

Pr ic e w a t er ho u s e & Co o p er s“PwC consider that the 3E method, 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 friendly

solutions and, as such, as being an eco-conception approach.”

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5757

Qualitative Rhodia SI: the reference tool for a RhodiaWay

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

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59

Process description for Jaguar CMHP*

59

E f f l u e n ts &E m i s s io n sinputs 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

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60

Guar Split modeling from literature data

60

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)

Re s u l t s on « C l im a te C h a n ge » a n d « Re s o u r ce s »c om p on e n t s o f t he e n v i r on m e n t a l im p a c t a r e r o b u s t,« H u m a n He a l t h » an d « e c o s y s te m Q u a l i t y » r e s u l t sa r e m o r e q ue s t i on a b l e d ue t o h i g h un ce r t a in t ie s one m i s s i on s a t f ie l d (n i t r o ge n c y c le , l ix i v i a t i onm e c h an i sm s, … )D a t a f o r w a te r u p t a ke f o r i r r i g a t i on a r e n o tc on s i s te n t (n o t in c l u de d in t he an a l y s i s )

����

Ne e d f o r de e pe r in ve s t i g a t i on

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6161

Perspectives at Vernon Pr o c e s s i m p r o v e m e n ts i m p l e m e n t e d a t V e r n o n s i n c e 2 0 0 7 s h o w e d a po s i t i v e e f f e c t o nJ a g u a r C M H P e n v i r o n m e n t a l i m p a c t:6 t o 7 % on C O2 f o o t p r in t an d r e s o u r ce s c on s u m p t i on2 t o 4 % on h u m an he a l t h a n d e c o- s y s te m q u a l i t y

A p r o gr a m fo r f u r t h e r i m p r o v e m e n t s w i l l s h o w m u c h m o r e s i g n i f i c a n t e f f e c ts a s s o o n a s2 0 1 4

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Key Learnings

« 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 the

Company

- 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!