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An introduction to Life-Cycle Thinking and Management Environmental News . No 68 . 2003

Management Life-Cycle Thinking andAn introduction tolca-center.dk/wp-content/...to-life-cycle-thinking-and-management.pdfcreasingly focused on product-oriented ini- ... advantages

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An introduction to Life-Cycle Thinking andManagement

EEnnvviirroonnmmeennttaall NNeewwss .. NNoo 6688 ..

22000033

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n introduction to Life-Cycle Thinking and M

anagement

Did you know:

• that more than 700 Danish enterprises have a certified environmental managementsystem that is consistent with the ISO 14001 standard or the European EMAS regu-lation

• that environmentally certified enterprises are increasingly taking a cradle-to-graveapproach to their products as part of their preventive initiatives concerning environ-mental issues

• that the detergent Bluecare, that has the Swan label, 12-doubled its market shareafter a test showed that it was the cheapest, best and most environmentally friendlydetergent

• that more than 90% of fridges sold in Denmark today have the energy labels ’ClassA’ and ’Class B’ – a twofold increase compared to sales five years ago

• that good design = longevity of a product = better environment

• that at present environmental labelling criteria exist for 68 product groups in accor-dance with the Nordic Swan label or the European Flower label

• that 51 procurement guidelines have been published for public-sector and private-sector procurement officers, and that procurement officers from within the publicsector annually spend a total of DKK 140bn.

• that there is a list of 60 substances that the environmental authorities want tophase out the use of as soon as possible

• that consultancies can establish how a product affects the environment for DKK 20-30,000.00

• that as much as 66% of the ’load’ lorries are driving around with is ’air’. Thismeans that huge environmental improvements can be achieved by optimisingtransport capacity and logistics plans

• that a product is already made more environmentally friendly, if it is easier to repair

• that more than 80% of a new car can be recycled, and that an increasing number ofthe big car manufacturers require that their suppliers introduce certified environ-mental management

Strandgade 29 • DK-1401 København K • Tel +45 32 66 01 00 • www.mst.dk

ISBN: 87-7972-459-0 ISSN: 0905-5991 • Price: DKK 95.00, inclusive of VAT

Can be bought from: Danish Ministry of the Environment • Frontlinien • Strandgade 29 • 1401 København K • +45 32 66 02 00 • [email protected]

An introduction to Life-Cycle Thinking andManagement

EEnnvviirroonnmmeennttaall NNeewwss .. NNoo 6688 ..

22000033

Arne RemmenDepartment of Development and PlanningAalborg University, Denmark

Marie MünsterRambøll A/S

FOREWORD 5

1. LIFE-CYCLE-BASED ENVIRONMENTAL INITIATIVES 7

2. ADVANTAGES WITH LIFE-CYCLE-BASED ENVIRONMENTAL INITIATIVES 13

3. HOW TO BEGIN? 17

4. HOW TO ORGANISE THE EFFORTS? 23

5. MANAGEMENT AND THE ENVIRONMENTAL EMPLOYEE 27

6. PRODUCT DEVELOPMENT AND PRODUCTION 31

7. PROCUREMENT, TRANSPORT AND SALES 35

8. MARKETING AND ENVIRONMENTAL COMMUNICATION 39

9. ENVRIONMENTAL COOPERATION IN THE PRODUCT CHAIN

– USING THE ENTERPRISE’S NETWORK 43

10. DECISION-MAKING AND OTHER TOOLS

– HOW TO KEEP THE PROCESS GOING! 49

FURTHER INFORMATION AND SOURCES OF INSPIRATION 55

Table of Contents

4

5An introduction to Life-Cycle Thinking and Management

In recent years, enterprises taking the fore-front in environmental initiatives have in-creasingly focused on product-oriented ini-tiatives.The Danish Ministry of the Envi-ronment and the Environmental Council forCleaner Products support product-orientedenvironmental initiatives and have put for-ward three main goals:

• The environmental characteristics of aproduct should constitute an aspect ofits market competitiveness equal to thatof price, function, quality, design, etc.

• Product development should entail im-proved environmental characteristicsthroughout the product’s life cycle, fromcradle to grave.

• That all stakeholders can and will takeinitiatives to reduce the environmentalimpacts associated with production,transport, use and disposal of products.

The overall objective is to encourage enter-prises to develop cleaner products whichmay also provide enterprises with competi-tive advantages in the marketplace.

How does an enterprise get started withproduct-orientated environmental initia-tives? This booklet provides practical ideas,based on a life-cycle perspective, for pre-ventative environmental initiatives.

The booklet is aimed at enterprises, regard-less of their sector or size, which are inter-ested in reducing the environmental impactof their products.

The focus is on a straightforward approachto environmental initiatives, where an enter-prise begins at a level which matches its am-bitions and capabilities. The goal of an en-vironmental initiative is to achieve concreteenvironmental improvements to products.Enterprises can plan their activities so thatthe advantages associated with a product-orientated environmental initiative are re-alised throughout the process.

Development and marketing of cleanerproducts is not difficult if an enterprisechooses a step-by-step approach where ini-tiatives gradually become more ambitiousand far-reaching as the enterprise acquiresexperience.

This booklet explains how enterprises estab-lish an internal commitment to and readi-ness for life-cycle-based initiatives, as well asan understanding of how this may graduallybe expanded to become a more strategic ef-fort with marketing of cleaner products.

Good luck with your efforts !

Foreword

Steen Gade,Director General,Danish Environmental Protection Agency

Anna Lise Mortensen,Brdr. Hartmann A/S

6 An introduction to Life-Cycle Thinking and Management

7

1. Life-cycle-based environmental initiatives

An introduction to Life-Cycle Thinking and Management

From Cradle to Grave

Life-cycle-based environmental initia-tives involve developing products whichhave improved environmental character-istics throughout the product’s life cycle,from cradle to grave.

In the past, enterprises have primarilyfocused on environmental improvementsto the production processes within theenterprise’s own perimeter fence. Life-cycle-based environmental initiatives fo-cus on improvements to the product inall phases, from raw material extractionand transport, to production and con-sumption, to re-use or disposal.

Figure 1. The life cycle of a product – and closingthe resource cycle

A life-cycle-based environmental initia-tive provides an opportunity to get anoverview of the enterprise’s situation andto weigh the advantages and disadvan-tages associated with various choices. For

example, would the disadvantages asso-ciated with an environmentally proble-matic material in the production processbe counterbalanced by doubling productdurability? Composite materials reducethe weight of a car and thereby con-tribute to decreased fuel consumption inthe use-phase of the product. But doesthis advantage outweigh the disadvantagethat recycling of composite materials isoften problematic?

A life-cycle assessment provides an op-portunity to obtain an overview over theadvantages and disadvantages associatedwith various choices which arise duringthe various phases in a product’s life cy-cle from cradle to grave. Such anoverview also gives the opportunity todevelop new initiatives. Is there, for ex-ample, a new method to recycle compo-site materials? Via an environmental /life-cycle assessment it is possible to ob-tain more detailed knowledge which pro-vides a sound foundation for subsequentdecision-making and final choices.

A life-cycle perspective demands morefrom an enterprise’s environmental ini-tiatives, but also provides the possibilityfor significant advantages, for example:an improved market position comparedto the competitors; an improved marketimage; closer cooperation with suppliersand customers regarding product deve-lopment and marketing; as well as betterrelations with environmental and otherauthorities and with other collaborativepartners.

Enterprises begining life-cycle-based en-vironmental initiatives NOW have agreater possibility of realising these ad-vantages than if they wait to see what thecompetitors are doing.

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8 An introduction to Life-Cycle Thinking and Management

Reuse andrecycling

Reuse

Use andmaintenance Packaging and

distribution

Extraction ofraw materials

Recyclingmaterials/components

Recovery

Incinerationand disposal

Design andproduction

FROM CLEANER PRODUCTION VIA

ENVIRONMENTAL MANAGEMENT TO

CLEANER PRODUCTS

Over the last decade, Danish enterpriseshave gradually been taking more respon-sibility for the environment: from envi-ronmental optimisation of production,via a commitment to make continuousenvironmental improvements, to deve-lopment and marketing of cleaner pro-ducts.These represent three differentsteps in a preventative environmental ini-tiative, which is in itself a step towardssustainable development taking into ac-count economic, social and environmen-tal issues.

Cleaner production processesWhen an enterprise has optimised pro-duction by reducing water and energy

consumption, by substituting harmfulmaterials, and by introducing the bestavailable technology to reduce dischargesand emissions, then an enterprise’s pro-ducts are cleaner, all else being equal.Cleaner production is a first step towardscleaner products.

Environmental managementEnvironmental management often focus-es initiatives on the environmental condi-tions within the enterprise’s own proper-ty and makes demands for continuousimprovements.With this focus, environ-mental initiatives can gradually be ex-panded to include for example, environ-mentally optimised goods transport, col-laboration with suppliers regardingphase-out of harmful substances, infor-mation to consumers regarding environ-mentally friendly product use, etc.

9An introduction to Life-Cycle Thinking and Management

Figure 2. Various approaches to life-cycle-based environmentalinitiatives.

Cleaner products- life-cycleperspective

Step 1

Step 2

Step 3

Step 4

Sustainability

Environmentalmanagement- on-goingimprovements

Cleanerproduction- resources,and emissions

10

Life-cycle-based environmental manage-ment is a step further towards cleanerproducts.

Cleaner productsWhen an enterprise focuses on improv-ing the environmental characteristics of aproduct, all departments must contributeincluding product development, produc-tion, sales and marketing, procurement,and transport. Similarly, it requires in-creased collaboration with suppliers andconsumers, regarding environmental im-provements and to meet the criteria forthe Swan and EU Flower eco-labels.

Cleaner products and eco-labelling makedirect use of environmental characteris-tics as a parameter in market competi-tion.

An enterprise may use all three steps to-wards producing cleaner products.Theenterprise selects the level which bestmatches its goals and level of ambition,its previous experience, and the re-sources available.

THREE EXAMPLES FROM

DANISH ENTERPRISES

Many Danish enterprises have undertak-en extensive environmental initiativescorresponding to one or more of theabove “steps”. Increasingly, industriesare taking their responsibility for the en-vironment seriously which, in accor-dance with Danish and EU environmen-tal policy, involves preventative action atthe source, closure of the raw materialcycles, the “polluter pays” principle, andsustainable development.

Printline is a print production companyin Odense with 30 employees. In the late1990’s, the enterprise began to makechanges to the print production processso that the use of lead and tin was re-placed with silver. Printline realised anumber of advantages with this new pro-duction process: the use of silver repre-sents only one percent of the previousquantity of tin and lead; water and ener-gy consumption have fallen by 80 to 90percent; the production flow operatesfour times faster; the work-place climatehas improved; the quality of the producthas improved, as the surface is now moreflat, etc.

Substitution of silver in the place of theundesirable metals has created a cleanerproduction process, and thus also clean-er printed circuit boards.Together, sub-stitution and cleaner production aresteps towards cleaner products.

In 1993, Phønix Printing in Århus wasthe first Danish enterprise to introduce acertified environmental managementsystem. According to the enterprise’s en-vironmental accounts, the staff now in-cludes 71 quality and environment man-agers (= employees).The enterprise hassince obtained a licence to use the Swaneco-label on their products.Today, aquarter of the enterprise’s trade is inSwan-labelled printed matter and Phønixis working towards increasing this seg-ment via customer guidance, partner-ships and general dialogue.

Environmental management can take aproduct-orientated direction, and thusbecome a tool, assisting enterprises todevelop and market cleaner products.“Green Cotton” is a product conceptbased on a life-cycle perspective which

An introduction to Life-Cycle Thinking and Management

the company Novotex launched in thelate 1980’s.The central phases in the lifecycle of a cotton product were identified.Then, for each phase, the health andsafety and environmental problems wereroughly assessed. Based on this informa-tion Novotex has had on-going collabo-ration with its suppliers to reduce the en-vironmental impact of cotton products.At the same time, the enterprise has beenworking with cleaner technology, intro-duced an EMAS environmental manage-ment system, and eco-labelled some ofits textile products.

A cleaner product concept is a goodplatform from which an enterprise canbegin to work with environmental ma-

nagement, eco-labelling, and collabora-tion with suppliers.

SUPPLY AND DEMAND

– WHICH COMES FIRST?

Developments and initiatives in the envi-ronmental field have often been drivenby demands from authorities. A product-orientated environment policy, also re-ferred to as an integrated product policy(IPP), places some of the responsibilityin the hands of the enterprise and theconsumer.

Demand for cleaner products on themarket must be created: and creating de-

11An introduction to Life-Cycle Thinking and Management

mand is a gamble. On the one hand, anenterprise can, to a certain degree, claimthat consumers do not demand cleanerproducts. On the other hand, consumersmay claim that enterprises do not pro-duce and offer cleaner products.

This is a difficult “chicken and egg” situ-ation. But enterprises must take a gambleand make investments in the environ-ment, betting that there will be advan-tages in the future.The list of possibleadvantages is long (see chapter 2).

12 An introduction to Life-Cycle Thinking and Management

13

2. Advantages with life-cycle-based environmental initiatives

An introduction to Life-Cycle Thinking and Management

14 An introduction to Life-Cycle Thinking and Management

It is important for an enterprise to pre-dict new trends and possible threats.What one enterprise sees as a threat maybe seen as an advantage by another. Anenterprise’s perspective on environmen-tal change depends to a large degree onthe enterprise’s own environmental strat-egy as well as its internal readiness andcommitment to undertaking integratedenvironmental initiatives.

There are a number of good reasons tobegin with life-cycle-based environmen-tal initiatives.

INTERNAL DRIVING FORCES

One of the internal driving forces is of-ten an enterprise’s desire to be at theforefront of new trends which may beprofitable. Inspired by the United Na-

tion’s environmental organisation,UNEP, a list of driving forces includesthe following (see also Figure 3).

1.The responsibility of managementManagement have a responsibility tominimise the environmental impact fromproducts and processes.This responsibil-ity includes the children in the day-carecentre 200 metres down the road and ex-tends to the hole in the ozone layer.Management are being urged to act withforesight, to take responsibility for theirproducts, to phase-out environmentallydetrimental substances, and to accepttheir scrap products back from custo-mers, etc.

2.The need for improved product qualityConsideration of the environment in theproduct development and design stagesmay give a product new qualities interms of functionality, durability, ease ofmaintenance and repair, etc.Thus, thequality of a product may be improved byconsidering environmental implicationsfrom cradle to grave.

3.The desire for a better imageA product and an enterprise’s image maybe improved by documenting the pro-duct’s environmental profile in environ-mental communications, for example, inthe enterprise’s environmental policy orits green accounts.Thus, an enterprisecan market itself, both to its own em-ployees and to external partners, as anenterprise which makes on-going im-provements to reduce the environmentalimpact of its products.

Figure 3. Internal driving forces and possible advantages

Responsibilityof enterprisemanagement

Opportunitiesto reduce costs

Newtechnologicalinnovations

Employeeinterest andinvolvement

Need for improvedproduct quality

Desire for abetter image

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15An introduction to Life-Cycle Thinking and Management

4.An opportunity to reduce costsOften there are numerous opportunitiesto reduce costs which become evidentduring a product-orientated initiative, forexample, reduced material costs, lesswaste, optimised logistics, lower resourceconsumption, and fewer emissions fromeach production step.

5. Employee interest and involvementEmployees as well as management musttake responsibility for the environment.Employees have an interest in removingharmful substances from production as itwill improve their work-place environ-ment. When employees contribute withsuggestions regarding environmental im-provements, their pride in the product’sworkmanship increases. A good enter-prise and product reputation has a posi-tive effect on employee recruitment.

6. New technological innovationsTechnological innovations in the form ofnew materials or inventions can radicallyimprove a product’s environmental pro-file by increasing its energy efficiency,durability, etc. An explicit environmentalprofile may lead to breakthroughs intonew markets.

EXTERNAL DRIVING FORCES

Most enterprises are involved in closecollaboration with a number of partners.These relationships may provide oppor-tunities for life-cycle-based environmen-tal initiatives, or demands may be im-posed, for example by authorities. Col-laboration may also give the opportunityto achieve several advantages (see alsoFigure 4).

1. Goodwill with the authoritiesA front runner environmental initiativecreates goodwill with the authorities, asthe authorities adjust inspection and su-pervision of an enterprise according tothe enterprise’s own level of initiative. Atthe same time it is expected that enter-prises take responsibility for the environ-mental impacts from their own processesand products.

2.Advantages in market competitionDevelopment of cleaner products andeco-labelling according to the EU Flowerand the Nordic Swan criteria may give astrategic advantage on the market interms of a greater market share and in-creased sales. A life-cycle-based environ-mental initiative may give the product anextra quality which may be a contribut-ing factor in a customer’s selection of theproduct rather than a competing pro-duct.

State– laws andregulations

Marketcompetitiveadvantages

Public– environmental

demands

Competition– frontrunner or

late - comer?

Sectororganisations

– networkcollaboration

Suppliers– technological

innovation

Figure 4.External driving forces and possible advantages

16 An introduction to Life-Cycle Thinking and Management

3. Public demands Contact with friends, neighbours, themedia, etc. creates situations where bothmanagement and employees are ques-tioned regarding the enterprise’s envi-ronmental performance. An environmen-tal communication regarding the enter-prise’s environmental initiatives provides“the right answers” and a good publicimage.

4. A frontrunner compared to the competitorsAn enterprise which has the internalreadiness for, and commitment to, life-cycle-based environmental initiatives hasthe opportunity to be a frontrunner inthe development of cleaner products,rather than just following the competi-tors. As a trend-setter, an enterprise be-comes an attractive and credible suppli-er.

5. Network collaboration and demands from business associations Many sectors collaborate via networks orproduct panels on product-orientatedenvironmental initiatives. A few businessassociations require member enterprisesto introduce a certified environmentalmanagement system. Other sectors havedeveloped their own guidelines for “goodenvironmental behaviour”.

6. Collaboration among suppliers regardingenvironmental innovationsIncreased collaboration between suppli-ers may provide advantages in terms ofexchange of knowledge and experience,improved supply assurance, flexibility aswell as mutual assistance with develop-ment of new products and services.Closer cooperation with mutual advan-

tages may lead to partnerships whichcreate new environmental innovations.

GRAB THE CHANCE

Enterprises are all different.This is alsotrue of the driving forces which influ-ence an individual enterprise. Often en-terprises are pictured as maladjusted,surrounded by numerous thick, pointingarrows representing new demands fromthe market place, the state, etc.

But enterprises are also responsible fortheir own state of affairs. By focusing onthe internal driving forces an enterprisedevelops knowledge, an environmentalcommitment, and readiness so it canquickly pick up on new trends and takeinitiatives when customers, neighbours,authorities or other partners voice newdesires or demands.

An enterprise which is well prepared fora life-cycle-based environmental initia-tive is able to strategically develop andmarket cleaner products. A proactive en-vironmental strategy means that the en-terprise is the leader and can thus play adetermining role in the interplay betweenpartners. It is important for an enterpriseto discuss the various driving forceswhen trying to set the ambition level andgoal(s) with regard to development andmarketing of cleaner products.This sub-ject is discussed in the next chapter.

17An introduction to Life-Cycle Thinking and Management

3. How to begin?

18

Product-oriented environmental initia-tives up until now have focused on themethod – a detailed life-cycle assess-ment, followed by determination of themost significant environmental impactscreated during a product’s life cycle.These efforts have often ended up deal-ing with data collection and data issues,rather than concrete strategies concern-ing how an enterprise can improve theenvironmental profile of a product.

If an enterprise has not previously inves-tigated a product’s environmental im-pact, then it is a good idea to take a step-by-step approach and begin by focusingon a life-cycle perspective and on con-crete possibilities to improve the environ-mental characteristics of a product.

A STEP BY STEP APPRAOCH

A step-by-step approach may involve thefollowing phases, which are also thesame phases an enterprise goes throughwhen introducing an environmentalmanagement system (see Figure 5).

1. Policy – setting goals and determiningthe ambition level

A life-cycle-based environmental policyought to be visionary and long-rangewhile also being realistic and concrete.An enterprise must therefore, set bothlong-range objectives and a concrete am-bition level.This will avoid confusing sig-nals, both internally and with collabora-tion partners.There must be no “hotch-potch” between policy and practice: be-tween what an enterprise “says” andwhat it “does”.

Setting goals and determining the levelof ambition ensures conformity betweenpolicy and actions.There are at leastthree different ambition levels which canbe distinguished.

• Internal readiness and commitment toenvironmental improvements

• Environmental profile for cleaner products

• Marketing of cleaner products

Distinguishing between these ambitionlevels allows a step-by-step plan for envi-

1. Policy – Set objectives and determine the ambition level

2. Organise – Get management and employees organised

3. Survey – Get an overview over the existing knowledge

4. Goal – Select an area where the efforts will be directed, determine the goal(s),

and make an action plan

5. Environmental

improvements – Put the plan into action

6. Reporting – Document the effect(s) of the efforts and make the results public

7. Begin again – Evaluate the experience, revise the policy, organisation, etc.

8. Undertake supplementary investigations and obtain further information

9. Specify existing initiative areas and select new areas and goals

10. Etc. Etc. Etc.

Figure 5. Environmental improvements are the turning point

3. H

ow to

beg

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An introduction to Life-Cycle Thinking and Management

19An introduction to Life-Cycle Thinking and Management

ronmental improvements which gradual-ly becomes more ambitious as newknowledge and experience associatedwith setting plans into action are ob-tained (see also tools – Chapter 10).

When the environmental policy has beenset the enterprise must organise the ef-fort and collect information.

2. Organisation An organisation of the initiative is, ofcourse, “alpha and omega” to the suc-cess of a project, so this step is discussedin greater detail later (see Chapter 4).

3. Survey – get an overview over the existing knowledgeThe majority of enterprises have a greatdeal of knowledge regarding the environ-

mental impacts of their products andprocesses collected and available, for ex-ample, in their environmental approvalor green accounts. In general, this infor-mation is presented in terms of the pro-duction process, rather than in terms ofthe products.The first challenge is thusto obtain information relating to particu-lar products.This latter information alsoprovides the enterprise with crucial fig-ures for production costs related toproduct groups or series.

The next challenge is to obtain anoverview of the knowledge and experi-ence found in the literature and held bycollaboration partners.This type ofknowledge survey may be simplified byusing the “sparring partners” within theenterprise’s network (see also Chapter

A. Environmental impacts

• Life-cycle phases – where are the most significant environmental impacts?

• Technology – is there new technology available, or being developed which can reduce the

environmental impacts?

B. Market/commercial conditions

• Supply – what is characteristic of the present product’s environmental profile?

• Demand – what part does environmental awareness play in the customer’s and

consumer’s product demands?

• Value – what advantages will be achieved by adding positive environmental

characteristics as an extra product quality?

C. Partners

• The product chain – are the suppliers, retail store owners, or others interested in

collaboration on environmental initiatives?

• Authorities – what are the demands of authorities – at present and in the future?

• Within the sector – what environmental initiatives are being undertaken by the

competitors, or others involved in the sector?

• Knowledge network – what information can consultants, universities, etc.

provide?

Table 1.The survey:

9). Extending the information survey tosuppliers, business associations, authori-ties, retail shops, scientific institutions,etc. ensures that information is obtainedfrom at least three areas (see also Table1, above):

Based on the ambition level, the enter-prise must limit the information collect-ed to what is necessary and practical.Enterprises which consider too many as-pects or potential situations during thedata-collection phase risk getting sobogged down in information that theproject “dies”.

Product-orientated green accounts, sixor seven telephone conversations withpartners, and some reading are sufficientto obtain the first overview.Thisoverview provides background informa-tion which may be drawn upon later ifdetailed, goal-orientated information col-lection and investigation are undertakenin conjunction with a raised level of am-bition, or new demands.

4. Select an area where the efforts will bedirected, determine goal(s) and make anaction plan

Constructive responses to the questionslisted above provide a sound basis for se-lecting an area where environmental im-provement would be worth pursuing. Insome cases the environmental problemsidentified by an enterprise may be solvedby another’s efforts, for example, a newtechnology is nearly functional or a sup-plier is phasing out harmful substances.

Based on the current situation andknowledge, an enterprise must decidewhich area will be prioritised with regardto environmental initiatives.This deci-sion may be made based on the followingthree questions:• Where are the most significant envi-

ronmental problems in the product’slife cycle? (relevance)

• Where is it possible to achieve envi-ronmental improvements? (potential)

• Where can the enterprise make a dif-ference? (influence)

The Danish company Brdr. Hartmannhas weighed such questions during theplanning of their life-cycle-based envi-ronmental initiative. By considering “rel-evance” and “potential” together in thecontext of environmental initiatives, theydeveloped the following simple prioriti-sing model, Figure 6.

Remember that an enterprise may haveseveral “shots” at environmental pro-blems. Choose several initiative areas sothat an enterprise’s various departments,for example, procurement, logistics, etc.also have the opportunity to contributeto minimising the products’ environmen-tal impact.

20

Hig

h

High Low

Low

Influ

ence A difference

can really bemade here

Significance for theenvironment

Figure 6.Prioritising the effort

An introduction to Life-Cycle Thinking and Management

Concrete goals and an action plan mustbe defined for each initiative area:Who isresponsible for doing what and when. Anaction plan is a good means of explicitlystating the goals, delegating responsibili-ty and setting the time frames, so that thecircumstances surrounding the environ-mental initiative are clear for both ma-nagement and employees.

5. Make environmental improvements –put the plan into actionGood planning is important, but it is thepractical results which create credibility,enthusiasm, and active support for anenvironmental initiative.

Focusing on the entire life cycle of aproduct will identify numerous possibili-ties for obvious environmental improve-ments – “easy rewards” which will im-prove a product’s profile. Putting focuson a concrete problem will generateideas for improvements.

Environmental initiatives must also in-volve new challenges.What if an enter-prise were required to take back all itsscrap products according to an EU di-rective that enters into force in one year?Such a demand would, of course, beadded to an enterprise’s list of initiativearea and an action plan would provideexplicit details regarding the concreteinitiative.The goal of recycling materialsand product parts would require a re-thinking of the product. Some of theconsiderations are listed below:• fewer materials in a product make it

easier to recycle• a product which is easily taken apart

is also more easily recycled• the materials selected for the product

are recyclable

• the product is built in modules whichfacilitate repairs of selected parts

• redesign the product so that parts ofthe original may be re-used in newproducts

6. Reporting – document the effects of theefforts and make the results publicWith regard to the commitment of man-agement and employees, it is crucial thatthe effect(s) of the efforts are document-ed and that the results are made public.Such documentation gives credibilitywhen answering inquiries from custo-mers, suppliers, etc. regarding the enter-prise’s environmental policy.

The form of documentation is complete-ly dependent upon the ambition level inthe enterprise. It is advantageous for en-terprises to have some insight into theenvironmental impacts the enterprise’starget group prioritises, so that commu-nication can be aimed at this group.

Green accounts, which already containdetails of an enterprise’s environmentalinitiatives, may be redirected to be moreproduct-orientated, thus providing agood forum to document results andmake them visible to the public. Product-orientated green accounts may address:• To what degree has the energy

consumption of the product in theuser-phase been reduced?

• How much of the product can be re-cycled?

• To what degree and how has trans-port been optimised?

Results may also be made visible by cal-culating some key figures, for exampleenergy consumption during productionof the product, which can be made pub-

21An introduction to Life-Cycle Thinking and Management

lic via an environmental folder, eco-la-belling, or an environmental product de-claration.This is discussed in greater de-tail in Chapter 8.

7. Keep the process going – evaluate expe-rience and revise policies and organisatio-nal structuresAfter completing the first round of im-provements to the environmental profileof an enterprise and a product, it is agood idea to “take a deep breath” andevaluate the experience:• What went well and not so well?• How can the effort be improved?• Should more of the employees be in-

volved in the environmental initiative?• Should the efforts be focused in a dif-

ferent direction?• Were the appropriate means and me-

thods used?• Should more partners be involved?• Should the level of ambition be rai-

sed?• Etc.

Such an evaluation, conducted once ayear, makes an excellent background foradjusting an enterprise’s environmentalpolicy so that it is consistent with the ac-tual efforts. After such an evaluation anenterprise may decide to continue at thesame ambition level until the internal en-vironmental commitment and readinessto undertake initiatives are well estab-lished, or until partners or others voicedemands regarding more extensive envi-ronmental commitment, and thus a high-er ambition level.

Remember – the idea behind a step-by-step approach is ensuring a reciprocal in-teraction between developing knowledgeconcerning a product’s environmentalimpact, market demands, etc. and imple-mentation of concrete product-orientedenvironmental improvements.

8. Undertake supplementary investigationsand obtain further knowledge

Through the experience from the firstround of environmental improvements,an enterprise has likely identified areaswhere further investigation may be ad-vantageous.

If demands are made requiring an enter-prise to supply further documentation re-garding the environmental impact of aproduct, then a simple environmental as-sessment is appropriate. If it becomes evi-dent that there are significant environ-mental impacts in the user-phase, theninvestigation of consumer desires and de-mands would be an obvious method toobtain ideas for design changes or to de-velop better instructions for product use.If an enterprise uses chemicals or materi-als which are on the list of undesirablesubstances it would be sensible to beginphasing them out.

It is much easier to develop a knowledge-base if there is good cooperation andtrust among producers, suppliers, retailstore owners, disposal facilities and otherstakeholders in the product chain. (Seechapter 9, Cooperation in the productchain).

9. Define the environmental initiative areaand the goal(s)On the basis of experience, the initiativearea and goal(s) are redefined and a newround of efforts begins with plans, im-provements, etc. Focus remains onachieving concrete environmental im-provements to the product profile, whilerealising results during the improvementprocess.

22 An introduction to Life-Cycle Thinking and Management

23

4. How to organise the efforts?

An introduction to Life-Cycle Thinking and Management

24

Of course there are many ways to orga-nise a life-cycle-based environmental ini-tiative. Clearly, the size of an enterpriseand its previous experience with preven-tative environmental activities will influ-ence how an initiative is organised, aswill the enterprise’s ambition level.

Integration of environmental efforts intoall aspects of an enterprise may be ac-complished in part by:• High priority from management• Internal communication • Involvement of all the relevant de-

partments / functions• An environmental coordination

group• Coordination with other initiatives

and projects within the enterprise.

High priority from managementThe benefits an enterprise achieves froma life-cycle-based environmental initia-tive depend upon whether the “environ-mentally active” employees have the fullsupport of management. In practise thissupport may be expressed in the follow-ing ways:• The necessary resources have been

set aside for the environmental initia-tive – particularly time and educatio-nal resources.

• Management actively participates insetting the strategic goals.

• There is explicit internal communica-tion throughout the enterprise regar-ding the ambition level and goals.

• The employees involved in the envi-ronmental initiative feel that their ide-as and suggestions are taken seri-ously.

Internal communication and visibilitywithin the enterprise

Internal communication ensures thatboth focus areas and results of life-cycle-based environmental initiatives are com-mon knowledge among employees.Thegreater the number of employees, themore demanding this task.The visibilityof the efforts and the results is an impor-tant precondition for support and in-volvement.

It should be “in neon lights” that a par-ticular initiative is not a single effort, butrather a part of an on-going environmen-tal improvement plan where all emplo-yees can contribute with ideas for newinitiatives or improvements. Internalcommunication also ensures that the var-ious departments can see the reason forthe initiatives and thus do not workagainst each other due to lack of infor-mation and understanding.

Involvement of all relevant departmentsA life-cycle-based environmental initiati-ve affects all functions and departmentsof an enterprise. For example, a decisionto change the material composition of aproduct not only affects the quality, priceand environmental profile of a product,but also raises questions regarding pro-curement of the new material, potentialmarkets for the new product, consequen-ces to the production process, new logi-stical demands, etc.

All departments must therefore partici-pate with ideas for environmental initia-tives and solutions, based on their parti-cular expertise.This will ensure a rangeof ideas, as well as creating a realism inrelation to the situation in the various de-partments.The smaller the enterprise,the smaller the number of people who

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An introduction to Life-Cycle Thinking and Management

must be involved to ensure participationof all departmental functions.

Each department within an enterpriseoperates to some degree inside “its ownuniverse” – with its own projects, inte-rests and priorities. A challenge for ma-nagement and the environmental coordi-nation group is “putting the environmentin the spotlight” in every departmentand creating a friendly competition be-tween departments regarding life-cycle-based environmental initiatives.

Environmental coordination groupA life-cycle-based environmental initia-tive is so extensive that one person, re-gardless of his competence, cannot sitalone with daily responsibility for such a

project, as depicted in Figure 7. Respon-sibility ought to lie with an environmen-tal coordination group with a central keyperson.This coordinator is responsiblefor ensuring that the group functions,meetings are arranged, minutes takenetc.The coordination group membersmay take turns doing many of the practi-cal tasks.

The members of the coordination groupought to be selected so that all depart-ments / functions within the enterpriseare represented, including management,product development, production, pro-curement, logistics and sales.The actualnumber of people who will participate ina coordination group depends upon thesize of the enterprise. It is also important

25

Figur 7. Various departments’ contribution to a product-oriented environmental initiative (from the firm, Brdr. Hartmann A/S).

Life-cyclemanagement

Management

Production

Procurement

Productdevelopment Distribution

Salesand

marketing

Design for theenvironment

Life -cycle -basedenvironmental policy

and product strategy

Greenprocurement

Cleaner production

Greenmarketing

Greendistribution

An introduction to Life-Cycle Thinking and Management

26

that the division of labour and responsi-bility are clear for each project.

Participation of a range of employees en-sures that the environmental initiativeswill be deeply rooted in the enterpriseand that the focus will be on concreteimprovements to a product’s environ-mental profile, rather than mere talk anddata collection. Furthermore, broad par-ticipation ensures that an environmentalproject doesn’t “die” if a key employeeinvolved in the project leaves the enter-prise.

Coordination with other initiatives andprojects within the enterpriseOften the various departments within anenterprise have their own “pet projects”.This situation can lead to mixed signalsand employee complaints that, “We’vegot our fingers in too many pies!” “A

project isn’t even finished before a newone is started!”

Management must therefore considerthe connection between initiatives andhow to create synergy in the projects.The priority of various projects must beclear to all employees. Furthermore, it isa good idea if each department has itsown environmental project (see Figure7) so that the unity and connection inthe environmental effort is visible. Ma-nagement must ensure, already in theplanning phase, that the resources re-quired are available among all categoriesof employees so that the prioritised pro-jects can be completed.

Good coordination of an individual envi-ronmental initiative with other initiativesreduces administrative problems and ex-tra work associated with the day-to-dayfunctioning of the various projects.

For enterprises with a certified quality-and / or environmental management sy-stem, the new version of the ISO 9000standard from 2000 has provided goodopportunities for creating synergy be-tween customer-based quality manage-ment and product-oriented environmen-tal management (see Chapter 9).

Finally, it is necessary to check all poli-cies, procedures and instructions to en-sure that they reflect a life-cycle per-spective and an integrated product poli-cy.These internal documents must ex-plicitly state which departments are re-sponsible for which tasks (see the fol-lowing chapter).

“Little Enterprise Ltd.”, a fictive example, is a small enterprise whichproduces thermoses. The enterprise has not previously worked in agoal-oriented way with environmental issues, but it is a point ofhonour that the enterprise has “its house in order”. Furthermore, theenterprise puts an emphasis on a good working environment.

Little Enterprise Ltd. is beginning to receive environment-related questions from their customers, and in order to avoid any unpleasantsurprises regarding the environmental impacts associated with theirproduct, the company has decided to improve the product’s environ-mental characteristics using a life-cycle perspective.

In practice, the day-to-day management of the company is underta-ken by three people. Hansen is the director of Little Enterprise Ltd.and is responsible for management and sales. Kirsten is the secretaryand is also responsible for procurement and logistics. Niels is thehead of production with responsibility for production and product de-velopment. He is also the central coordinator for life-cycle-based envi-ronmental initiative.

An introduction to Life-Cycle Thinking and Management

27

5. Management and the environmental employee

An introduction to Life-Cycle Thinking and Management

28

Management is responsible for life-cy-cle-based environmental initiatives in-cluding coordination with other initia-tives and priorities within the enterprise.Thus, it is obvious to appoint an envi-ronmental leader / central environmentalcoordinator as the day-to-day “anchorperson”

MANAGEMENT HAS OVERALL

RESPONSIBILITY

Overall responsibility for a preventativeenvironmental initiative belongs, by defi-nition, to the director of the enterprise.This responsibility becomes even moreimportant when the focus shifts to deve-loping and marketing cleaner products.

Management must ensure that all em-ployees understand, and live up to, theintentions behind the environmental ini-tiative. Rather than a list of empty phras-es, an enterprise’s environmental policymust be relevant and clearly state the fol-lowing:• The long-term objectives and ambiti-

on level• The areas where the efforts will be

directed and the concrete environ-mental goals

• The enterprise’s strategy for the pro-duct and product service in a life-cycle perspective.

A product-orientated environmental po-licy must be integrated into the enter-prise’s other strategies and plans, as wellas functioning as a guide in the dailywork.The environmental policy may beused in communication with partners aswell as evidence of the enterprise’s ownambition level. Furthermore, it may be

used as an explanation for the demandsto suppliers and other partners.

The long-term goals plot a course andindicate the direction of an enterprise’senvironmental efforts. An environmentalpolicy may be both visionary with long-term objectives, while also being realisticby selecting manageable short-termgoals. A step-by-step approach gives thepossibility of being both visionary andrealistic at the same time. Furthermore, astep-by-step approach means that expe-rience and knowledge are gainedthroughout the process, and these arebuilding blocks for the next steps.

The environmental policy ought to beput into action in the initiative areas bymeans of concrete environmental goalswhich employees can work towards intheir daily tasks.Examples of initiative areas and goals aresome of the following:

The Danish company Grundfos has deve-

loped the following environmental goal for

product-development projects which states

that “Under normal circumstances the fol-

lowing minimum conditions must be met:

• minimum five percent reduction in

product energy consumption in the

use-phase

• minimum three percent reduction in

the raw-materials procurement-phase

• development of disposal instructions

for the product

The project manager may, after consultati-

on with the technical manager, dispense

with one or more of these requirements if

it appears that the goals cannot be achie-

ved within an economically and technically

justifiable framework.”

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An introduction to Life-Cycle Thinking and Management

• Chemicals – phasing out and substi-tution of chemicals and materialswhich are on the list of undesirablesubstances

• Transport – reduce CO2 emissionsfrom the enterprise’s goods transportby ten percent

• Product – develop instructions regar-ding environmentally friendly use anddisposal of the product

• Recycling – 85 percent of the materi-als in the product can be recycled

• Resource consumption – reduce wa-ter and energy consumption by eightand five percent, respectively

Selection of an initiative area and mea-surable goals motivates employees andmakes it obvious that environmental im-provement efforts are being taken seri-ously.Thus, it is a good idea if employeesparticipate actively in this selection pro-cess.

One way of specifying an initiative areainvolves setting environmental goals foreach phase of a product’s life cycle.Thiscan be actualised by a product strategywhich explicitly states that an enterprisewill consider the environmental implica-tions of a product’s various phases, andvia this improve the product’s environ-mental profile.Tools which may help inidentifying environmental implicationsare a “spider-web” or a “strategy wheel”.These can be drafted in such a way thatthe difference between a product’s exist-ing and improved environmental profilemay be illustrated graphically (see Chap-ter 10 regarding tools).

Expressing the environmental policyboth as concrete goals and a productstrategy demonstrates, in practise, thatmanagement takes life-cycle-based envi-

29

Niels draws a diagram of the environmental impacts associated with pro-

duction of a thermos; Little Enterprise’s most sold product. Hansen and

Kirsten contribute their knowledge regarding impacts before and after the

product leaves the factory.

Using the diagram, they discuss the goals for a new, environmentally im-

proved product which they hope will capture a greater market share.

Their biggest competitor’s product marketing is based on product mate-

rials alone. Furthermore, Little Enterprise believes that there are possibili-

ties for optimising energy consumption during production. Thus, they

have identified two initiative areas - at first.

These initiative areas do not require extensive background research.

Instead, ”Little Enterprise Ltd.” will concentrate on getting an overview.

In addition to Hansen, Kirsten and Niels, a few others are involved in the

information collection phase. The general overview may also illuminate

areas were more information should be obtained from outside sources.

The group agrees to inform about their efforts at a common breakfast

meeting the following Friday.

Figure 8. Identifying initiative areas and determining a product strategy

New ideas

Environmentally

friendly choice

of materials

Lower

consumption

of materials

Cleaner production

Environmentally

improved distribution

Environ-

mentally

friendly

use

Extended

product

life

Environmentally

optimised recycling

An introduction to Life-Cycle Thinking and Management

30

ronmental initiatives seriously, and thatmanagement will be leaders in the pro-cess. Similarly, management must signalthat life-cycle-based initiatives requirecooperation between all departments atall levels. Larger enterprises in particularrequire a coordinator who has day-to-day responsibility for the initiatives.

ENVIRONMNTAL COORDINATOR AS

ANCHOR PERSON

The central environmental coordinator,or the anchor person with daily responsi-bility for the initiatives will find that thetasks involved expand.

In cooperation with the environmentalcoordination group, the daily coordinatormust assume the following roles:• Coordinator for all the activities in

the various departments• Source of inspiration ensuring moti-

vation and availability of simple tools• Motivator including making the on-

going results of the initiatives visible.• Ambassador for the environmental

initiatives to partners in the productchain

• Contact person for the knowledgenetwork and relevant authorities

• Data processor during environmentalassessments or detailed life-cycle as-sessments

• Organiser / coordinator for collectionand analysis of market information

• Collector of suggestions for environ-mental improvements from internaldepartments and collaboration part-ners.

• Etc.

Whether the environmental coordinatoris an environmental manager, a productdeveloper, or a sales associate is, in prin-ciple, unimportant. It is important thatthe person is dedicated and enthusiasticabout the plans, as well as being good atmotivating and delegating. Furthermore,the person must be capable of acting as acoordinator for the entire enterprise.Specialised environmental expertise can,if necessary, be obtained outside the en-terprise.

A life-cycle-based environmental initia-tive also requires the presence of analystsand data processors within the enter-prise.This is yet another argument for anenvironmental coordination group withbroad representation from within the en-terprise.

Both dedicated enthusiasts and book keepers are neededin a life-cycle-based environmental initiative!

An introduction to Life-Cycle Thinking and Management

31

6. Product development and production

An introduction to Life-Cycle Thinking and Management

Up until now, people involved in the pro-duction have had a main role in connec-tion with environmental improvementsin the production process and also withthe introduction of environmental man-agement systems. Similarly, designersand product developers have an impor-tant role in the development of cleanerproducts.

THE ROLE OF DESIGNERS AND

PRODUCT DEVELOPERS

Clearly, product development is key to alife-cycle-based environmental initiative.The earlier environmental considerationsare integrated into product development,the easier it is to prevent harmful envi-ronmental impacts in a product’s life cy-cle.

Designers and product developers musttherefore have an understanding of thefactors which determine the environ-mental impact of a product. Only in rarecases will product developers need toanalyse environmental data, for examplea life-cycle assessment. Rather, access tostraightforward guidelines and assess-ments conducted by environmental spe-cialists is required.

How radically a designer or a productdeveloper changes a product will reflectthe level of ambition and the productstrategy which management has set.Generating ideas and developing con-cepts are central elements if the frame-work is relatively loose. Is there any de-mand for this type of product in the fu-ture? Will this product be replaced by aservice? Or integrated into a main pro-duct? The telephone answering machineis an example of a product which is dis-

appearing as a specific product, as thesame function is integrated into manytelephones or may be procured as a ser-vice from telephone companies. In mostcases, product development involvessmall steps – gradual adjustments andincremental improvements to a product.There are many aspects of a productwhich may be addressed, but the envi-ronmental profile of a product may be agood place to begin.

Technical aspects, economy, design,quality, etc. are still crucial to the devel-opment of a product, but these aspectsmay often be combined so that environ-mental considerations are given moreweight, for example:

• make the existing product cleaner, forexample by replacing an environmen-tally harmful substance with a lessharmful substance,

• move environmental considerationshigher up on the design criteria list -for example by putting equal weighton price and energy consumption inthe use-phase,

• develop a new, cleaner product withthe starting point being considerationof environmental impacts - for exam-ple a new clothes collection based onecological cotton,

• shift from producing a product tosupplying a service - the sale of linenproducts shifts to a clean linen delive-ry service.

”Little Enterprise Ltd.” decides to maketheir existing products cleaner by using amore environmentally friendly material inthe plastic parts of the thermos.

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An introduction to Life-Cycle Thinking and Management

33

THE PRODUCT DEVELOPER’S TOOL

Product developers and designers re-quire practical tools when they are chal-lenged to include environmental consid-erations in product development. Anumber of international guidelines andrules of thumb which reflect the environ-mental considerations for numerous sec-tors are available, also on the Internet(see the tool box in Chapter 10).

Many of these rules of thumb are builtupon the same principles referred to asthe “6 RE philosophy”:• Re-think – rethink the product

and its functions• Re-duce – reduce energy and ma-

terial consumption throughout a product’s life cycle

• Re-place – replace environmentally harmful substances with more environmentally friendly alternatives

• Re-cycle – select materials which can be recycled

• Re-use – design the product so that its parts can bereused

• Re-pair – design the product so that it is easily repaired

Products with motors and electricalplugs have always in the use-phase ener-gy consumption which gives rise to sig-nificant environmental impacts.

If there are no guidelines for an enter-prise’s specific product, it is a good ideato investigate the existing knowledgeconcerning the product group / family,as there may be guidelines for environ-mentally friendly design and product de-velopment for related products. Inspira-

tion for rethinking many types of pro-ducts may be found via the tool referredto as a strategy wheel or a spider web(see Chapter 10). Rules of thumb andguidelines are valuable tools for genera-ting new ideas for environmental im-provements to products. After theseideas have been analysed and prioritised,the environmental profile of the newproduct may be visualised using a spiderweb diagram which illustrates graphicallythe anticipated results of the product de-velopment.

In practise, there may be contradictoryconsiderations, for example between along product life and the use of a harm-ful substance in production. In suchcases an environmental assessment or adetailed life-cycle assessment is neces-sary.

INTEGRATED PRODUCT

DEVELOPMENT

Poor coordination between product de-velopment, production and sales depart-ments is often a problem for larger enter-prises. Consequently, many large enter-prises have introduced “integrated pro-duct development”, where coordination

KNOWLEDGE ABOUT CLEANER TECHNOLOGIES

AND ENVIRONMENTAL MANAGEMENT

- contact business associations

Most business associations have written material and guidelines re-

garding cleaner technology and environmental improvements to pro-

duction. Furthermore, many business associations have compiled se-

ctor-specific manuals to assist in introducing environmental manage-

ment systems. A few of these manuals assist with life-cycle-based en-

vironmental initiatives.

An introduction to Life-Cycle Thinking and Management

of the various considerations is integrat-ed into a system.

This involves formulating a procedurefor when and how environmental consi-derations are incorporated into the pro-duct development process. For example:when product specifications are avail-able, then a simple environmental assess-ment is to be undertaken.When a pro-duct prototype is completed, it is sent toa local scrap dealer for comments re-garding the ease with which the productcan be taken apart and recycled.

Enterprises such as Grundfos have envi-ronmental considerations as an inherentpart of the enterprise’s integrated pro-duct development procedure.

THE ROLE OF PRODUCTION

EMPLOYEES

Employees in the production departmenthave a big role to play in addressing the

environmental impacts associated withproduction processes and thus, may ac-tively contribute to reducing resourceconsumption and emissions. Enterpriseswhich have not previously consideredcleaner technology and environmentalmanagement find that there are manypossibilities for improvements and sav-ings.

Production employees may contributewith good ideas for concrete product im-provements, as well as finding and sup-plying data which specifically relate to aparticular product. In addition, emplo-yees have practical experience regardingwhat is possible in the production pro-cess, while avoiding too much backwardsand forwards.

Environmental management systems upuntil now have sufficed with figures re-garding the resource consumption forthe entire enterprise and for the primarysub-processes. Most green accounts andenvironmental reports are formulatedthis way. Now, however, with focus oncleaner products, figures concerning re-source consumption and emissions dur-ing production of each product are of in-terest. It may be necessary to changemeasurement points as well as documen-tation statements and procedures to ob-tain such figures.

Common product figures are a goodframe of reference for on-going environ-mental improvements of products. Indi-vidual figures for a specific product maybe difficult to calculate if the enterprisehas a broad range of products, because adistribution factor must be determinedwhich “allocates” the resource consump-tion among the various product groups.In such cases a rough estimate, whichmay be further refined at a later date, issufficient to begin an assessment.

34

AN EXERCISE FOR ALL EMPLOYEES

Try assembling eight to ten interested employees one day with one to

two hours available to discuss the following:

ENVIRONMENTAL PROBLEMS

- brainstorm about where the environmental problems are found in

the product’s life cycle

- record all the environmental problems

- discuss which problems ought to be and can be addressed

- develop a top-10 problem list where each person has three votes

POSSIBLE SOLUTIONS

- brainstorm again about possible solutions and suggestions for envi

ronmental improvements

- record all ideas for improvements

- make an action plan which includes who will be responsible for what

and when

There may be environmental problems and possible solutions which

require further investigation. Include them in the action plan.

Based on the discussions a so-called SWOT-outline can be drawn up

which straightforwardly identifies strengths, weakness, opportunities

and threats to the project.

An introduction to Life-Cycle Thinking and Management

35

7. Procurement, transport and sales

An introduction to Life-Cycle Thinking and Management

36

All departments within an enterprisehave an important role to play in a life-cycle perspective. Procurement, trans-port and sales employees have centraltasks with developing and marketingcleaner products (see Figure 7).

PROCUREMENT

The buyer has an important role inselecting the raw materials. Consequent-ly, a buyer requires some tools which in-tegrate environmental considerations to-gether with other factors such as price,quality, functionality, etc.

Buyers are able to encourage environ-mental considerations at their suppliersvia questions and demands. A buyer mayrequest the following information:• overview of the supplier’s general en-

vironmental initiatives and the suppli-er’s environmental policy

• documentation of the environmentalimpacts from the previous life-cyclephases

• specific environmental data regardingraw materials, secondary (passive)materials, etc.

Communication may be broadened toinclude dialogue and collaboration wherethe enterprise contributes ideas and con-structive criticism regarding environ-mental improvements at the supplier’send.The buyer may take on the role ofthe critical, environmentally consciouscustomer who makes numerous de-mands, or the role of a collaborationpartner working toward mutual advan-tages associated with the development ofcleaner products.

Kirsten of ”Little Enterprise Ltd.” makesenquiries at the supplier about whetherthe steel can be recycled. She also enqui-res whether the supplier has an overall en-vironmental policy and if so, what this in-volves.

TRANSPORT AND LOGISTICS

Transport is the common link betweenall phases of a product’s life cycle. Ener-gy consumption connected to transportof raw materials, as well as transport offinished products, is generally a minorcomponent of an enterprise’s total ener-gy consumption. Similarly, transport isseldom identified as one of the signifi-cant areas of environmental impact in alife-cycle assessment.

Nevertheless, a number of conditionswithin an enterprise may support trans-port-related initiatives.These may in-clude the following: interest on the partof the people responsible for transport,transport as an obvious initiative area,desire to influence the transporter to un-dertake more extensive environmentalinitiatives, etc. Furthermore, environ-mental impacts associated with transport

THE BUYERS TOOL BOX:

- Overview: what are the most significant environmental factors / impacts

in the product chain

- Criteria for selection of main supplier(s) (evaluation procedure for selec-

tion of suppliers)

- Questionnaire regarding suppliers’ environmental initiatives

- Guidelines for environmental dialogue and collaboration regarding

product improvements

- Procurement guidelines for environmentally friendly procurement

- Criteria for eco-labelling for relevant product areas

- Environmental declarations

- List of undesirable substances

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sal

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An introduction to Life-Cycle Thinking and Management

37An introduction to Life-Cycle Thinking and Management

are in general a growing problem, wheremany hitherto initiatives have fallenshort.

At hospitals, consulting companies, andsimilar enterprises, transport of person-nel between home and the workplace, aswell as work-related transport, representa significant environmental impact. Aninitiative in this area may begin by inves-tigating the following questions. Can em-ployees get to work on time using publictransport? Is there potential for car-pool-ing? Should the enterprise procure elec-tric cars for city driving? Are facilities forbicyclists adequate?

Kirsten has discovered that with a littlebetter planning and a longer product life,some of the transport can be saved – anadvantage economically and environmen-tally.

Environmental improvements involvemany small initiatives which togetherhave a large effect. Furthermore, it is agood idea to find initiative areas whichare visible to all employees and whichhave an important symbolic value. Simi-larly, small problems can impede largerinitiatives – “When the enterprise won’t

even build a proper bicycle shed whyshould I bother to get involved…?”

SALES AND MARKETING

It would be a waste of enterprise re-sources to develop a cleaner product if itis not in demand or cannot be sold.Thus, the employees responsible forsales and marketing have an importantrole in a life-cycle-based environmentalinitiative, because they must ensure goodinformation both to and from the cu-stomer.

Information from the customer providessales personnel with detailed knowledgeabout consumer preferences, weight gi-ven to environmental considerations andhow the product is used.

An investigation of consumers’ use of aproduct may reveal inappropriate as-pects of product use, thus giving productdevelopers new knowledge and inspira-tion for future environmental improve-ments. For example, an Australian inves-tigation revealed that 15 percent of theelectrical consumption associated withan electrical kettle was unnecessary. Itwas found that kettle-users often re-boiled the water because some small

TOOLS FOR ENVIRONMENTAL OPTIMISATION OF GOODS TRANSPORT:

- Accounting scheme which documents quantity and volume of goods, as well as transport distance

- Goals for degree of capacity utilisation (load factor)

- Comparative information schemes regarding the environmental impacts of various forms of

transportation, trucks, trains and ship

- Demand that the transporter use cleaner technology and an environmental management system

- Distribution concept whereby weight, volume and distance determine the type of transport selected

- Guidelines for improved logistical planning, route optimisation, etc.

- Optimisation of packaging to reduce transport needs

task, which begun while waiting for thewater to boil, took longer than the actualboiling time. A whistle, a temperature in-dicator or better insulation of the kettleare three possible solutions.

Knowledge regarding consumer be-haviour and preferences is crucial to de-veloping and marketing cleaner pro-ducts. Consumer and market surveysprovide accurate information regardingconsumer preferences and priority givento environmental considerations.Thereis, however, always a dilemma in marketsurveys as there is a difference betweenwhat a consumer says and how, in fact,the consumer acts.

Although ”Little Enterprise Ltd.” only hasa small customer base, their behaviourand preferences are well known. Hansenenquires within the enterprise if any em-ployee has received environment-relatedquestions from customers. He also makesenquiries regarding what environmentalaspects their customers prioritise, as wellas what customers would like to see prio-ritised in future environmental initiatives.

”Little Enterprise Ltd.” has expanded itsproduct-use directions to include informa-tion regarding the following: environmen-tally friendly cleaning; where spare partsfor the thermos may be purchased; andhow the thermos may be disposed of in anenvironmentally appropriate manner.

Information to the customers providesthe enterprise with an opportunity to in-crease awareness about a product’s envi-ronmental impacts. Sales employeesmust have enough environmental know-ledge to be capable of advising custo-mers regarding environmentally friendlyuse and disposal of the product.

The textile company, Gabriel, providestheir customers with guidelines forcleaning of residential and industrial tex-tiles to ensure that the cleaning methodis environmentally friendly.Thus,Gabriel has assumed some of the use-phase responsibility for the product andwants to contribute in reducing the useof environmentally harmful dry-cleaningand cleaning agents.

Product misuse may be extremely detri-mental to a product’s total environmentallife-cycle impact. Excessive quantities oflaundry detergent are an example ofproduct misuse. Similarly, informationregarding product disposal may improverecycling of selected materials or the en-tire product.The trend is towards ma-king the producer responsible for dispos-al of its own products.

Sales and marketing departments musthave enough environmental knowledgethat they can profile their enterprise’sproducts above the competitors.This re-quires that sales employees are familiarwith the criteria for eco-labelling, publicprocurement guidelines, the consumerombudsman’s criteria for environmentalmarketing, etc. (see Chapters 8 and 9).

There are lots of places for a sales em-ployee to begin, and further ideas in thenext chapter.

38 An introduction to Life-Cycle Thinking and Management

TOOLS FOR SALES EMPLOYEES:

- Consumer and market surveys

- Analysis of the competition and consumer trends

- Environmental profile for the product / an environmental

information fact sheet

- Strategy for environmental marketing

- Directions for environmentally friendly use of the product

- Information and courses regarding repair, environmentally friendly

operation, maintenance and disposal

39

8. Marketing and environmental communication

An introduction to Life-Cycle Thinking and Management

When an enterprise improves a pro-duct’s environmental profile, the productis given an extra quality.This is often a“hidden quality” because it is not alwaysobvious to consumers that a particularproduct has fewer environmental im-pacts than an apparently similar product.

The enterprise must therefore considerthe following questions:• How can a cleaner product be marke-

ted?• How can the product’s environmental

qualities be made known?

MARKETING CLEANER PRODUCTS

Increasingly, the environment is a pa-rameter which enterprises use in thecompetition together with price, func-tionality, design, quality, etc. Enterprisesmay use a product’s environmental char-acteristics to market the product in threedifferent ways:

1. Eco-labellingIn Denmark there are two officially ap-proved eco-labels, the ScandinavianSwan label and the EU Flower label.Eco-labels are aimed primarily at con-sumers and cover a wide range of com-mon and consumer goods (but not foodproducts). An enterprise must documentthat a product meets a list of previouslydetermined criteria in order to obtain aneco-label. It is not necessary, however, toconduct a detailed life-cycle assessment.

2. Environmental characteristicsIn this case, marketing is based on oneparticular aspect of the product’s envi-ronmental profile, for example, that thepetrol is lead-free, or that a laundry de-tergent is easily degradable.The enter-

prise must be able to document itsclaim(s).

3. Environmental products declaration An environmental declaration is aimedprimarily at professional buyers andmakes it possible to compare the charac-teristics of several similar products.There are no official guidelines for envi-ronmental declarations in Denmark, al-though there are in Sweden.

An environmental declaration must bebased on a life-cycle assessment andhave common or uniform content andformulation.The degree of detail re-quired in the life-cycle assessment hasnot yet been determined.

There are ISO standards for all threetypes (type I, II and III). Furthermore, itis necessary to know the marketing lawsand the consumer ombudsman’s guide-lines for environmental marketing.Theguidelines stress that marketing claimsregarding the environmental cha-racteristics of a product must be possibleto document, must be significant and re-levant, and must not be misleading.

REMEMBER that knowledge about themarket is just as important as knowledgeabout a product’s environmental im-pacts.The following questions are rele-vant for an enterprise to consider in con-junction with marketing of a cleanerproduct:• What do my customers demand, and

how do they weigh various considera-tions?

• What do my customers consider tobe the most important environmentalproblems which ought to and can beaddressed?

• What do collaboration partners, for

40 An introduction to Life-Cycle Thinking and Management

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example, neighbours, financial insti-tutions, etc. consider to be importantareas for environmental improve-ments of the product?

ENVIRONMENTAL INFORMATION

AND COMMUNICATION

There are other, more informal ways tomake a product’s environmental charac-teristics or an enterprise’s environmentalinitiatives more visible. Some examplesare listed below:• Figures for environmental impacts

during production of a particularproduct

• Conversations with customers • Electronic news letters about environ-

mental initiatives• Fact sheets about the environmental

impacts of a product• Manuals for environmentally friendly

use and disposal of the product• Lectures, and presentations at confe-

rences • Contact with the media and articles

in trade journals• Publication of the enterprise’s envi-

ronmental policy, goals and actionplans, as well as the green accounts

• Open house event

”Little Enterprise Ltd.” has calculated figu-res for the energy consumption requiredto produce one thermos, so this informati-on is available if and when a customermakes enquiries. In addition, the enterpri-se’s new product-use directions give in-structions regarding environmentally fri-endly cleaning and disposal of the therm-os.

It is important to make a clear distinctionbetween information and communica-tion.

Information is uni-directional, such as anewsletter, directions for use, or greenaccounts. In contrast, communication ismulti-directional and functions as a dia-logue between two or more partners, forexample, a customer visit, an employeemeeting, etc.Therefore, the followingmust be considered:• Who is the target group for the envi-

ronmental initiative(s), and how isthis group best reached with our mes-sage?

• Who are our environmental commu-nication partners and in what areas isthere collaboration?

Selection of a method to make a pro-duct’s environmental profile and an en-terprise’s environmental initiatives visiblewill depend upon the responses to thesequestions.

A number of enterprises were disap-pointed that there was not greater publicinterest in green accounts. Green ac-counts are an example of environmentalinformation, but there is also a need forenvironmental communication if an en-terprise wants an active dialogue withcustomers and partners.

When an enterprise is putting togetherenvironmental communication it mustconsider which messages and whichmethods are best suited to which audi-ences. For one customer group, prob-lems associated with waste may be im-portant. Another customer group mayemphasise obtaining comprehensive in-formation concerning environmental im-pacts throughout a product’s life cycle.

41An introduction to Life-Cycle Thinking and Management

The better an enterprise knows the vari-ous consumer groups and collaborationpartners, the bigger the effect of goal-oriented environmental communication.This knowledge is obtained from dia-logue and cooperation. It is also neces-sary to evaluate the effect of an enter-prise’s environmental information andcommunication so that experience canbe put to use in future initiatives.

When an enterprise has taken the stepfrom information to active environmen-tal communication, then the next step iscooperation with the enterprise’s part-ners.

42 An introduction to Life-Cycle Thinking and Management

43

9. Environmental cooperation in the product chain – using the enterprise’s network

An introduction to Life-Cycle Thinking and Management

A challenge in a life-cycle-based initia-tive is establishing cooperation and col-laboration among the relevant partnersin the product chain as well as with otherinterested partners.

SUPPLY CHAIN + VALUE CHAIN

+ COOPERATION = PRODUCT CHAIN

With a product-orientated environmen-tal initiative the focus shifts from withinthe enterprise’s fence to the entire prod-uct chain.The product chain includesthe following:• a flow of materials from acquisition of

raw materials to production, to use, todisposal

• a value and cash flow from the consu-mer to the producer

• communication and cooperation in theform of mutual exchange of knowled-ge and experience.

In an environmental context, interest upto now has been directed towards theflow of materials, for example, in a life-cycle assessment. In a life-cycle environ-mental initiative it is just as important tofocus on the value flow.What expecta-tions does the consumer have concerningthe product’s environmental characteris-tics? How do consumers rate environ-mental considerations relative to otherproduct aspects such as price, quality,functionality, design, etc.?

For enterprises, the challenge is to con-nect the links in the product chain insuch a way that there is focus on bothenvironmental optimisation of the mate-rial flow in the supplier chain; and on thecustomer’s expectations regarding envi-ronmental considerations in the valuechain. Communication and cooperationbetween all the partners involved willbuild connections between the supplier

44 An introduction to Life-Cycle Thinking and Management

Figure 9. Communication and cooperation in the product chain

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chain and the value chain.This is illus-trated in Figure 9.

Development of a cleaner product whichnever makes it to the market is a wasteThus, knowledge concerning environ-mental impacts must be balanced againstwhat consumers truly demand, particu-larly in terms of the environmental cha-racteristics of a product.

The platform for undertaking concreteenvironmental improvements of a prod-uct are described in Figure 9 and listedbelow:• knowledge about the product’s envi-

ronmental impacts and possible im-provements,

• knowledge about markets’ and consu-mers’ priorities regarding environ-mental considerations,

• knowledge about the demands ofother collaboration partners.

A combination of knowledge from allthree areas is the best basis for a life-cy-cle-based environmental initiative. Anenterprise must decide how knowledgeconcerning both the material and thevalue flow can be continuously updatedconcurrent with the latest changes inconsumer preferences, new technologicaladvances, etc.

A possible means is to couple customer-based quality management with product-oriented environmental management.Thelatest version of the ISO 9000 standardrequires that quality management becustomer-based in a much more overtway than just registering complaints. Forexample:What are consumer demandsregarding quality and environmentalconsiderations? How can the enterpriseaccommodate these demands? The com-

bination of knowledge regarding thechain of values together with an enter-prise’s control over quality and environ-mental parameters in the supplier chainmeans that the enterprise is in a goodposition to reap the strategic advantagesassociated with a cleaner product, tai-lored to the consumer.

When establishing product chain coo-peration it is wise to contact the sectororganisations, as they are acquaintedwith the existing knowledge and can as-sist with advice and guidance. For exam-ple, environmental assessments of partic-ular product groups / families are avail-able, thus making it easier to tap into ex-isting knowledge across enterprises with-in a particular sector (see Chapter 10).

INFORMAL COOPERATION AND PARTNER-

SHIPS IN THE PRODUCT CHAIN

A life-cycle-based environmental initia-tive requires the establishment of closecooperation between suppliers and con-sumers which will allow for an exchangeof knowledge and experience regardingthe product chain.This cooperation aimsat creating concrete advantages for allpartners. A close producer-consumerrelationship provides a good platform fortechnological innovation, including inte-grating environmental considerationsinto product development.

For some enterprises, informal coopera-tion, where information is exchangedand new initiatives are planned ad hoc, issufficient. Informal cooperation oftenoccurs with direct contact between em-ployees in the enterprises involved. Otherenterprises are involved in formal co-operation or even partnerships to ensure

45An introduction to Life-Cycle Thinking and Management

46

integration of environmental considera-tions into product development.

For example, Henkel-Ecolab has, in col-laboration with Berendsen, introduced adosing and service system which reducesthe consumption of laundry detergent.There are other examples of enterpriseswhich advise customers on the environ-mental impacts associated with variouschoices, for example, in relation tochoice of colour on packaging and print-ed matter.

Cooperation in the product chain maybe formalised by establishing a workinggroup which will coordinate collection ofinformation concerning both a product’smost significant environmental impacts,and the preferences and demands ofconsumers and retailers.Then, ideas forconcrete environmental improvements tothe product may be assembled by theworking group. Formal cooperation hasthe advantage that the partners are mu-tually obligated to exchange informationand experience.

Cooperation on environmental improve-ments in the product chain may also re-sult in advantages in areas not directlyrelated to the environment, for example:• Supplier – certainty regarding the or-

ders and a tailored solution• Consumer – certainty that the pro-

duct will sell, a good image and a so-lution tailored to the consumer

• Authorities – supervision adjusted tothe enterprise, improved goodwill,opportunity to influence the agenda.

The company Brdr. Hartmann has, forexample, experience that a tailored solu-tion developed in collaboration with thecustomer provides a greater degree of

certainty that the customer will also se-lect the product in the future.

”Little Enterprise Ltd.” decides that Nielsought to participate in informal cooperati-on with a network group involved in pro-duct-oriented environmental work so hecan update his knowledge of this field.The informal cooperation group turns outto be a good source of inspiration and pro-vides him with a network of resource pe-ople to whom he can turn when he has aquestion or problem concerning the envi-ronment.

Experience Exchange Groups

Business associations and municipalitieshave had success with using experienceexchange groups to introduce environ-mental management to groups of enter-prises in the same field, or in the samegeographic area.

Experience exchange groups also pro-vide a good forum for introducing a life-cycle-based environmental initiative to agroup of enterprises.With product-chaincooperation there are mutual obligationsconcerning, among other things, data ex-change. In an experience exchangegroup the focus is on updating the levelof knowledge within a certain field, ex-change of experience, and mutual inspi-ration via discussion of concrete ideasfor environmental improvements. Suchgroups lead to the development of net-works where members are able to helpone another with solutions to specific en-vironmental problems.

An introduction to Life-Cycle Thinking and Management

In many enterprises, a single employee isresponsible for environmental issues, in-cluding data collection and analysis, aswell as specific initiatives regarding im-provements to a product.This environ-mental responsible employee will oftenneed to discuss environmental questionswith colleagues in similar situations em-ployed at other enterprises. Furthermore,such groups help to maintain employee’senthusiasm for environmental initiatives.

It is a good idea if several employeesfrom the same enterprise are involved inthis collaboration.The employee with re-sponsibility for environmental issuesshould invite other employees to selectedmeetings. For example, employees in-volved in product development may beinvited to a theme day about environ-mental considerations in design andproduct development.This will streng-then internal interest and cooperationwithin an enterprise, which will, in turn,contribute to the organisational integra-tion of the efforts and finally contribute

to the results from the product-orientedenvironmental initiative.

COOPERATION WITH AUTHORITIES AND A

KNOWLEDGE NETWORK

Authorities and a number of other insti-tutions more or less closely tied to an en-terprise may provide assistance with life-cycle-based environmental initiatives fo-cusing on developing and marketingcleaner products.

Various authorities have an in-depthknowledge of requirements for produc-tion processes and products.These re-quirements are constantly changing, andin recent years, the majority are EU re-quirements.

A recurrent dialogue with authoritiesprovides insight into these requirements,so an enterprise is not ”caught sleeping”.Local authorities have knowledge aboutwhere an enterprise may obtain informa-

47An introduction to Life-Cycle Thinking and Management

GOOD PLACES TO GET HELP – ON THE NET AND IN PERSON:

• Cleaner products: see www.mst.dk, the Danish Environmental Protection Agency’s website, under

“products & industry”. At this site there are project reports, references to product panels,

information regarding subsidies under the Program for Cleaner Products.

• Energy: see www.energioplysningen.dk, the National Danish Energy Information Centre (Energi

Oplysningen).

• Waste: see www.affaldsinfo.dk, Waste Centre Denmark (Videnscenter for Affald).

• Transport: see www.transit.dk, transIT – provides information to the transport trade.

• Chemicals: see www.dtc.dk, Danish Toxicology Centre (Dansk Toksikologi Center).

• Undesirable substances: check the “list of undesirable substances” at www.mst.dk.

• Environmental marketing: see www.fs.dk, the Danish National Consumer Agency’s

(Forbrugerstyrelsen) website under “consumer law”.

• Business associations: see for example www.di.dk, the Confederation of Danish Industries’

(Dansk Industri) website.

tion regarding energy, waste, subsidyprogrammes, etc.

An enterprise’s knowledge network in-cludes various types of consulting firms,Technological Information Centres, uni-versities and research institutions, the oc-cupational health service, sector organi-sations, approved technological serviceinstitutes, for example “dk-teknik” and“Teknologisk Institut”, local / regionalenergy and waste companies, etc.

These knowledge network provide assis-tance with a preventative environmentalinitiative. Most of these “advisors” arealso competent sparring partners interms of development of cleaner prod-ucts.

48 An introduction to Life-Cycle Thinking and Management

49

10. The tool-box– how to keep the process going

An introduction to Life-Cycle Thinking and Management

In the 1990’s, in Denmark, the Ministryof the Environment put emphasis on life-cycle assessment as a decision-makingtool to evaluate the most significant envi-ronmental impacts associated with aproduct. An enterprise will require vari-ous tools depending upon the goal(s)and the level of ambition for the environ-mental initiative, particularly if attentionis directed towards marketing aspects ofcleaner products.

There are tools suitable for at least threetypes of tasks:

A. Assessment of the most significantenvironmental impacts from cradle tograve

B. Ideas for environmental improve-ments to a product / eco-design

C. Environmental communication in theproduct chain and cooperation withinterested partners

In addition, there are tools concerningconsumer and market surveys, economicanalyses, quality development, etc.Thelatter tools are outside the context of thisreport.

There is short discussion of the threetypes of tools below. Finally, there is a listof references to more detailed literature.

A) LIFE-CYCLE ASSESSMENT – ENVIRONMEN-

TAL IMPACTS FROM CRADLE TO GRAVE

Depending upon the goal, a life-cycle as-sessment may be undertaken with threedifferent degrees of detail which havevery different requirements in terms ofdata collection and analysis.They are asfollows:

Life-cycle thinking / conceptual life-cycle as-sessment involves a rough mapping of therelevant environmental impacts in thevarious phases of a product’s life cycle.The goal of this type of assessment maybe summarised in the following question:based on the existing knowledge regard-ing the environmental impacts from cra-dle to grave, how will an enterprise pri-oritise initiatives for improvements to aproduct’s environmental profile?

The enterprise may undertake the as-sessment alone and the steps are the fol-lowing:• Obtain an overview over the phases

of the life cycle and the relevant envi-ronmental impacts

• Use guidelines and rules of thumb• Obtain ideas for immediate environ-

mental improvements – “low hangingfruits”.

This type of assessment involves a quali-tative evaluation of the enterprise’s situa-tion based on contact and discussionswith relevant collaboration partners. (SeeChapter 3 for suggested questions fordiscussion.) This evaluation may be sup-plemented with quantitative informationbased on key figures, standards, andcommon knowledge.

Simplified environmental assessment / life-cycle screening is used to identify the mostimportant environmental impacts andlife-cycle phases.This information canthen be used to identify “hot spots”which should be assessed in greater de-tail. One tool which may be used in thisprocess is the MEKA scheme (a Danishacronym for the words materials, energy,chemicals and other) which aims at ma-king data collection and analysis moremanageable.This involves:

50 An introduction to Life-Cycle Thinking and Management

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51An introduction to Life-Cycle Thinking and Management

• Identification of the significant envi-ronmental impacts and life-cycle pha-ses

• Identification of hot spots• Ideas for systematic environmental im-

provements to the product.

In the past few years,Technological Infor-mation Centres (TIC), located throughoutDenmark, have assisted a number of en-terprises in using the MEKA method toperform an initial “life-cycle check”.

A detailed life-cycle assessment provides in-formation which will permit comparisonof similar products, as well as detailed in-formation regarding the most significantenvironmental impacts in the entire life cy-cle of the product.This assessmentmethod is time consuming, requires exten-sive data collection, and specialised envi-

ronmental expertise.Tools such as thecomputer program, SimaPro, from Hol-land or the Danish UMIP (an Danishacronym for Development of Environ-mental-friendly Industrial Products) arehelpful.

The majority of Danish enterprises willnormally require assistance from an envi-ronmental consulting firm to conduct adetailed life-cycle assessment. Such an as-sessment involves the following:• Identification of the most significant

environmental impacts and life-cyclephases

• Documentation as a prerequisite forenvironmental product declarationsand eco-labels

• Comparison of products.These three degrees of detail for assess-ment of a product’s environmental im-

Level of ambition Internal environmental Environmental profile Marketing acommitment and for a cleaner product cleaner productreadiness

Survey (analysis) Overview over life-cycle Simplified Detailed life-cycle assessmentphases, authorities’ environmental and market surveyrequirements, etc. assessment and

user survey

Goals Select initiative Implement obvious Documentation of mostareas for environmental important environmentalenvironmental improvements impactsimprovements

Cooperation Contact with relevant Cooperation among Common routines forcollaboration partners suppliers regarding exchange of experience

documentation and in the product chainenvironmental improvements

Results (statement) Can respond to enquiries Conforms to Marketingregarding a product’s environmental criteria, of the product’senvironmental profile for example public environmental

procurement guidelines characteristics

Figure 10. Assessment of a product’s environmental impacts

52

pacts correspond in general to the threelevels of ambition discussed previously(see Chapter 3).

The ambition level also determines howmuch time, and knowledge, and howmany resources must be allocated to aninitiative.The longer an enterprise movesto the right in Figure 10, the greater thetime and expertise required. Expressedin another way, more detailed data col-lection requires more time and necessi-tates the involvement of a greater num-ber of environmental specialists. Howev-er, it is only necessary to undertake a de-tailed life-cycle assessment if the enter-prise wishes to market its product as en-vironmentally better than the competi-tors.

B) IDEAS FOR ENVIRONMENTAL IMPROVE-

MENTS / ECO-DESIGNS

Internationally, there is a tradition ofworking with Eco-design and Design forthe Environment.This begins with a life-cycle perspective, from which a numberof ideas and guidelines regarding im-provements to a product’s environmentalprofile in each individual phase aregenerated.The approach puts focus oncreativity and is action-oriented.

Philips operates, for example, with a“Fast Five” design approach where aproposed new product is compared to areference product via the following fivequestions:• Energy – does the proposed product

design use less energy than the refe-rence product?

• Recycling – is the new product moreeasily recycled?

• Hazardous waste – does the proposedproduct contain less chemical waste

than the reference product?• Product value – does the new design

contribute to a longer product life, in-crease the desirability of the productand make it easier to repair?

• Service – is this a new way to providea service with fewer environmentalimpacts?

If the answer is YES five times then theproposed new product is an excellent al-ternative. If the answer is “yes” onlythree times, then the product is consid-ered to be an interesting alternative, butone which still requires some improve-ment. A single “yes” means that the de-signer ought instead to consider up-grades to the reference product.

There are a variety of decision-makingtools to assist with eco-designs withnames such as spider web, strategywheel, eco-compass, etc. which empha-sise a visual representation of the issues(see Figure 11).

Based on a rough assessment of a refe-rence product, the existing product’s en-vironmental profile is presented graphi-cally by giving the product a grade foreach individual life-cycle phase.Thisprovides the background for discussionsregarding the goals for future productdevelopment. In addition, the environ-mental profile for the proposed productis sketched in with a grade for eachphase.This visual presentation identifiesclearly where a new product requires en-vironmental improvements and may alsoassist in motivating product developersand other employees.

A spider-web approach is illustrated inFigure 11.The practical value of this toolmay be further improved if each phaseand each concrete action task are formu-

An introduction to Life-Cycle Thinking and Management

lated in such a way that they address thecommon characteristics of the variousproduct families (see the literature list).

53An introduction to Life-Cycle Thinking and Management

+-

0 – New concept developmentDematerialisingCommon use of the productIntegration of functionsFrom product to service

7 – Optimisation of end-of-life systemRecycling of the productBetter collection and sortingReuse of materialsCleaner waste incineration

6 – Optimisation of product lifeReliability and durabilityEasy maintenance and repairsProduct with a module structureClassic designUser takes good care of the

product

5 – Reduction of environmental impactsassociated with product useLow energy consumptionCleaner energy sourceFew necessary secondary materials in

the productUse / consumptionNo use of energy / secondary materials

4 – Effective distribution systemsLess packaging and more

environmentally friendly packagingEnergy efficient forms of transportEnergy efficient logistics

3 – Optimisation of the production technologyUse of cleaner technologyFewer production processesLower energy consumptionLow waste generationFewer / cleaner secondary materials

2 – Less consumption of materialsReduction of weightReduction of transport (volume)

1 – Selection of environmentally friendlymaterialsFewer environmentally harmful materialsRenewable materialsMaterials with a low energy contentRecycled materialsRecyclable materials

New environmental profile – goals for product development

Environmental profile– existing product

Figure 11. A product’s environmental profile (adapted from Brezet & van Hemel, 1997)

C) ENVIRONMENTAL COMMUNICATION

AND PRODUCT CHAIN COOPERATION

A life-cycle-based environmental initia-tive with focus on developing and mar-keting cleaner products makes new de-mands on environmental communicationwith an enterprise’s various partners (seealso Chapters 8 and 9).There are anumber of tools to assist in working sys-tematically with environmental commu-nication and dialogue within an enter-prise and between enterprises.

When establishing more systematic envi-ronmental communication, an enterprisemust determine the following:

• With which partners / interested par-ties does the enterprise wish to enterinto dialogue?

• What are the partners’ requests andgoals regarding environmental dialo-gue?

• What messages will be communi-cated using which means?

• How does an enterprise develop aplan for environmental dialogue?

• How are credible environmental ar-guments constructed?

• How can the results of environmentaldialogue be evaluated?

The answers to these questions andothers are answered in the literature listunder “C”.

54 An introduction to Life-Cycle Thinking and Management

General literature concerning cleaner products and life-cycle-based environmental initiatives

• Kirsten Schmidt, m.fl.: Manual onProduct-oriented EnvironmentalWork. Environmental News No 64,Danish EPA 2002. (Gives an intro-duction to a product-orientated andlife-cycle-based environmental initia-tive along the same lines as this book-let).

• Livscykluscheck (LCC) – Stimule-ring af mindre virksomheders interes-se for arbejdet med renere produkter.Teknologisk Information Center,2002 (See www.tic.dk - clarificationof needs, life-cycle check and aboutforty fact sheets).

• Intensified Product-oriented Envi-ronmental Initiative. EnvironmentalProject No. 460, 1999.

• Arne Remmen: Renere produkter –nye værktøjer, aktører og relationer.Evaluation of completed projects un-der the Danish Ministry of Environ-ment’s Cleaner Technology ActionPlan 1993-97. Orientering nr.12, Da-nish EPA, Ministry of Environmentand Energy, 2000.

A) Environmental and life-cycle assessment:• Torben Lenau, m.fl.: Miljørigtig ud-

vikling i produktfamilier – en hånd-bog. Miljønyt Nr. 67, 2002. (Basedon an environmental assessment, themost significant improvement possi-bilities are listed for related productgroups).

• Kirsten Pommer, m.fl.: Håndbog imiljøvurdering af produkter – en en-kel metode, Miljønyt, nr. 58, DanishEPA 2001. (A manual for a simplifiedenvironmental assessment).

• DS-håndbog 126. Livscyklusvurde-ringer– en kommenteret oversættelseaf ISO 14040 til 14043. Dansk Stan-dard, 2001. (A presentation and dis-cusssion of LCA standards).

• Jesper Olesen, m.fl.: Miljørigtig kon-struktion. UMIP publikation, DanishEPA and the Confederation of Da-nish Industries, 1996. (Discusses howthe designer / engineer can integrateenvironmental considerations intoproduct development).

• Henrik Wenzel, m.fl.: Miljøvurderingaf produkter. UMIP publikation, Da-nish EPA and the Confederation ofDanish Industries, 1996.

• Astrup Jensen et. al.: Life-cycle As-sessment – a guide to approaches, ex-periences and information sources.European Environment Agency,Copenhagen, 1997

• Pablo Frankl & Frieder Rubik: Life-cycle Assessment in Industry and En-terprise. Adoption Patterns, Applica-tions and Implications. Springer Ver-lag, 2000. (Discusses European en-terprises’ experiences with life-cycleassessments).

55An introduction to Life-Cycle Thinking and Management

Further information and sources of inspiration

B) Eco-design / design for the environment:

• Han Brezet & Carolien van Hemel:ECODESIGN – A promising appro-ach to sustainable production andconsumption. UNEP 1997. (Basedon Dutch experience, this handbookgives an introduction to eco-design).

• Ursula Tischner, et.al.,: How to doEcoDesign? A Guide for environ-mentally and economically soundDesign.Verlag form praxis, 2000.(Contains a comprehensive discussi-on of a number of Eco-design tools).

• Herman Meinders: Point of no re-turn. Phillips EcoDesign guidelines.Phillips, 1997. (Phillip’s suggestionsregarding integration of environmentinto design and product develop-ment).

• Sustainable Solution Design Associa-tion: A Handbook on the Environ-ment for the Textil and Fashion Indu-stry 2002. (How the environmentmay be taken into consideration intextile design).

• Eco-Conscious Design of Electricaland Electronic Equipment. (DanishCD-rom about eco-design and sim-ple environmental assessment ofelectronic products).

C) Environmental communication andproduct chain cooperation• Håndbog i miljødialog.The Confede-

ration of Danish Industries, 2001. (Abrief introduction to how an enterpri-se selects interests, areas, goals andmeans for environmental dialogue.The subjects are handled in greaterdepth in a series of booklets listedbelow).

• Hans Niemann, m.fl.: Planning andOrganising an Environmental Dialo-gue. Environmental News, No. 63,The Danish Agency for Trade andIndustry & the Danish EPA, 2001.

• Hans Niemann, m.fl.: Miljødialogmed kunder. Miljønyt nr. 46, the Da-nish Agency for Trade and Industry& the Danish EPA, 2000.

• Anette Petersen, m.fl.: Miljødialogmed leverandører. Miljønyt nr. 48,the Danish Agency for Trade and In-dustry & the Danish EPA, 2000.

The following booklets are also includedin the same series. (All booklets are avail-able on the internet: www.mst.dk)• Udformning af skriftlig miljøkommu-

nikation, Miljønyt nr. 42, 2000.• Miljødialog gennem pressen, Miljønyt

nr. 44, 2000.• Miljødialog med kollegaer, Miljønyt

nr. 45, 2000.• Katalog over midler til miljødialog,

Miljønyt nr. 47, 2000.

The following reports regarding productchain cooperation and the environmentwill be published:• Heidi Stranddorf, m.fl. Miljøledelse i

produktkæder. Danish EPA, 2002 (Agood description of enterprise exam-ples).

• Kirsten Schmidt, m.fl.: Miljøledelse iproduktkæder – supplerende eksem-pler med fokus på miljømærker og in-ternationale forhold. Danish EPA,2002.

All publications by Danish EPA (theMinistry of the Environment) may befound at www.mst.dk

56 An introduction to Life-Cycle Thinking and Management

Terms: environmental management; product-chaincooperation; cleaner products; life-cycle perspective;enterprises

Supplementary notes: Translation of “Kom godt igang med livscyklustankegangen !” (Miljønyt, 65).

This Handbook is part of a ’mini series’ about life-cycle thinking and life-cycle assessment published bythe Danish Environmental Protection Agency in itsseries ’Miljønyt’ (Environment News).Together, the publications are to support enterprises,authorities, etc. who want to deal with environmentalconditions based on a life-cycle approach.

Layout: Finn Hagen Madsen

Illustrations: Lars Ole Nejstgaard

Number of pages: 56 Format: A4

Number of copies: 700

ISBN: 87-792-469-0 ISSN: 0905-5991

Printed by: Schultz

Price (incl. 25 % VAT): 95 DKK

Distributed by:Danish Ministry of the Environment FrontlinienStrandgade 291401 København K+45 32 66 02 [email protected]

Quotation allowed indicating sourcePrinted on 100% recycled paper Cyclus

Data Sheet

Publisher:The Danish Ministry of the Environment. The Danish Environmental Protection AgencyStrandgade 29, DK-1401 København Ktel +45 32660100fax +45 32660479Internet http://www.mst.dk

Series title and no.: Environmental News, 68

Year of publication: 2003

Title:An introduction to Life-cycle Thinking and Management

Authors:Remmen, Arne;Münster, Marie

Performing organization:Department of Development and PlanningAalborg University, Denmark

Abstract: This booklet describes how enterprises can begin developing cleaner products based on a life-cycle perspective. It focuses on a simple approach to preventive environmental initiatives, where enterpri-ses can begin at a level that matches their ambitionsand their preconditions. The report is aimed at enter-prises that, irregardless of size or sector, are intere-sted in reducing environmental impacts from theirproducts.

RReessuumméé::Hæftet beskriver, hvordan virksomhederne kan kom-me i gang med at udvikle renere produkter udfra enlivscyklustankegang. Der er fokus på en enkel tilgangtil en forebyggende miljøindsats, hvor virksomheder-ne kan gå i gang på et niveau, der passer til deresambitioner og muligheder.Rapporten henvender sig til virksomheder, der uan-set størrelse og branche er interesseret i at nedbringemiljøpåvirkninger fra deres produkter.

Nr. 25: Alternative transportløsninger i landdistrikterne. - 2. udg.

Nr. 26:Trafik og miljø i kommuner - ny inspiration

Nr. 27: Badevandskort 1998

Nr. 28: Sørestaurering i Danmark

Nr. 29: Miljøbevidst design af grafiske produkter

Nr. 30: Begrænsning af trafikstøj

Nr. 31: Forsigtighedsprincippet

Nr. 32: CO2-virkemidler på transportområdet - et samarbejdsprojekt med Svendborg kommune

Nr. 33: Ecosystem Vulnerability to Climate Change in Greenland and the Faroe Islands

Nr. 34: Miljøkapacitet som grundlag for byplanlægning - Generel del

Nr. 35: Precautionary Principle

Nr. 36: Badevandskort 1999

Nr. 37: På rette vej

Nr. 38: Borgernes miljørettigheder

Nr. 39: Miljø og arbejdsmiljø

Nr. 40: Dansk miljøeksport af produkter og rådgivningsydelser til vandsektoren 1998

Nr. 41: Danish Environmental Exports of Products and Consultancy Services Within the Water Sector 1999

Nr. 42: Udformning af skriftlig miljøkommunikation

Nr. 43:Tilrettelæggelse af miljødialog

Nr. 44: Miljødialog gennem pressen

Nr. 45: Miljødialog med kollegaer

Nr. 46: Miljødialog med kunder

Nr. 47: Katalog over midler til miljødialog

Nr. 48: Miljødialog med leverandører

Nr. 49: Badevandskort 2000

Nr. 50:Vejen til bedre miljø ved produktion af tekstiler

Nr. 51: Kriterier for prioritering af trafikstøjbekæmpelse

Nr. 52: Håndbog til kommunerne om eksport af elektronisk affald

Nr. 53: Håndbog i produktorienteret miljøarbejde

Nr. 54: Alternatives to Methyl Bromide; Integrated Pest Management in Danish flour mills

Nr. 55: Alternatives to Methyl Bromide; IMP in three typical danish flour mills

Nr. 56: Håndbog om trykimprægneret træ og mulige alternativer

Nr. 57: Evaluering af miljøtrafikuge 2000

Nr. 58: Håndbog i miljøvurdering af produkter

Nr. 59: Miljøledelse - katalog over 66 projekter

Nr. 60: Dansk miljøeksport af produkter og rådgivningsydelser indenfor affaldssektoren i 1999

Nr. 61: Danish Environmental Exports of Products and Consultancy Services within the Waste sector in 1999

Nr. 62: Miljøstyring og miljørevision i danske virksomheder

Nr. 63: Planning and organising an environmental dialogue

Nr. 64: Manual on Product-Oriented Environmental Work

Nr. 65: Renere produkte

ENVIRONMENTAL NEWS

An introduction to Life-Cycle Thinking andManagement

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Did you know:

• that more than 700 Danish enterprises have a certified environmental managementsystem that is consistent with the ISO 14001 standard or the European EMAS regu-lation

• that environmentally certified enterprises are increasingly taking a cradle-to-graveapproach to their products as part of their preventive initiatives concerning environ-mental issues

• that the detergent Bluecare, that has the Swan label, 12-doubled its market shareafter a test showed that it was the cheapest, best and most environmentally friendlydetergent

• that more than 90% of fridges sold in Denmark today have the energy labels ’ClassA’ and ’Class B’ – a twofold increase compared to sales five years ago

• that good design = longevity of a product = better environment

• that at present environmental labelling criteria exist for 68 product groups in accor-dance with the Nordic Swan label or the European Flower label

• that 51 procurement guidelines have been published for public-sector and private-sector procurement officers, and that procurement officers from within the publicsector annually spend a total of DKK 140bn.

• that there is a list of 60 substances that the environmental authorities want tophase out the use of as soon as possible

• that consultancies can establish how a product affects the environment for DKK 20-30,000.00

• that as much as 66% of the ’load’ lorries are driving around with is ’air’. Thismeans that huge environmental improvements can be achieved by optimisingtransport capacity and logistics plans

• that a product is already made more environmentally friendly, if it is easier to repair

• that more than 80% of a new car can be recycled, and that an increasing number ofthe big car manufacturers require that their suppliers introduce certified environ-mental management

Strandgade 29 • DK-1401 København K • Tel +45 32 66 01 00 • www.mst.dk

ISBN: 87-7972-459-0 ISSN: 0905-5991 • Price: DKK 95.00, inclusive of VAT

Can be bought from: Danish Ministry of the Environment • Frontlinien • Strandgade 29 • 1401 København K • +45 32 66 02 00 • [email protected]