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OECD Sustainable Manufacturing Toolkit g
First steps to seizingFirst steps to seizing opportunities from greening your businessesy
17 March 2011
T M hibTomoo MachibaSenior Policy Analyst, OECDtomoo machiba@oecd [email protected]/sti/innovation/green
Green Growth & Eco-Innovation projectp j
Governments are looking at green opportunitiesopportunities
• Japan … Green Innovation– New growth opportunity for matured economies
• EU … Eco-Innovation Action Plan– Promote the development of eco-industries
• US … Sustainable Manufacturing Initiative– Empowering supply chain firms
• Korea … Green GrowthM di d l i l i– Medium and long-term national strategies
• OECD … High-level strategy documentsI ti St t i – Innovation Strategy in 2010
– Green Growth Strategy in 2011
Rationale of the project• Post-Kyoto discussions & continuous pressure
• Industry is taking initiatives but improvement in • Industry is taking initiatives but improvement in efficiency has been offset by increasing consumption and outsourcingconsumption and outsourcing
• A new vision for business opportunities based A new vision for business opportunities based on innovation is needed with best practices
• Means to benchmark to accelerate corporate Means to benchmark to accelerate corporate and policy efforts
• Policy co-ordination for enabling industry to y g ytake positive actions
Benefit from green manufacturingBenefit from green manufacturing
• Green market already worth over $5 trillion.– In the UK, 56% of manufacturers invest in green.
• Big players are demanding suppliers to green.– Wal-Mart introduce an index to 100,000 suppliers.
• Green reputation drive up financial value.– Firms with problems pay 0.64% more for debts and
credits.
• Little investment lead to big savings• Little investment lead to big savings.– Cut energy by 20% and increase 5% profit.
• Employees are ready for changes• Employees are ready for changes.– 96% want to have employers greener.
Why measurement?y• Improving environmental performance is increasingly
seen as necessary to improve economic performance and y p psocial responsibility
• Measurement is necessity to improve performance … “If ’ i ’ i ”you can’t measure it, you can’t manage it”.
• Allow to identify problems and track progress over time.
• An good but essential entry point for further activities such as eco-design, CSR, sustainability reporting.
H SME d l h i fi t d t fi d • However, SMEs and supply chain firms tend to find difficult to invest in green, even to understand the issues.
• No international standard in basic measurement despite • No international standard in basic measurement, despite many standards in other areas exist.
Objectives of the OECD ToolkitObjectives of the OECD Toolkit
• Provide a comprehensive international framework of a standard set of environmental performance indicators
• Provide an easy entry point for all companies to understand issues and take action
• Allow to benchmark within firms and peers
• Provide a gate for further actions, linking with g gother methods, initiatives and guidance and keeping compatibility
History of Toolkit developmenty p• 2007: Committee (CIIE) requested to form Advisory
Expert Group (AEG)Expert Group (AEG)
• April 2008: AEG formed (approx. 50); advised to investigate existing initiatives and identify needs
• Apr 2009: AEG recommended development of Toolkit that encourages companies use indicators, aiming for an unified approachunified approach
• Aug 2009: Invited other initiatives to discuss draft technical protocol
• May 2010: Technical protocol completed
• August 2010 - now: Develop a Guide and a Web Portal turning technical protocol into a practical tool Portal, turning technical protocol into a practical tool
• April 2011: Launch of Toolkit
Toolkit features• Provide a set of performance indicators applicable for
any (manufacturing) companiesany (manufacturing) companies
• 18 indicators owe much to existing initiatives including GRI, GHG Protocol, material flow, etc.
• Focus on facility and product mix instead of corporate or national level
P id l i t t d l l i t d f i l • Provide analysis at aggregated level instead of a single product or material … benchmarkable
• Guidance to make an inventory of basic dataGuidance to make an inventory of basic data
• A combination of communication material (Guide) and technical guidance (Web Portal)
• Use illustrative good practices and templates9
Existing approaches & ToolkitExisting approaches & Toolkitai
l
High LCA
GRI MFA
nica
l Det
a
Medium
GRI MFA
IPCCOECDToolkit
Tech
n
L
IPCCPRTRsEMAS
EF
Product | process | facility | corporation | sector | country | global Measurement unit
Low EF
Manufacturing lifecycleManufacturing lifecycle
Inputs Operations Products
List of 18 OECD indicators
Inputs Operations ProductsO1 Water intensity
O2 Energy intensity
O3 R bl i
P1 Recycled/reused content
P2 RecyclabilityO3 Renewable proportion
of energy
O4 Greenhouse gas intensity
I1 Non-renewable
P3 Renewable materials content
P4 Non-renewable materials intensityO5 Residuals intensity
O6 Air releases intensity
O7 Water releases
I1 Non renewable materials intensity
I2 Restricted substances intensity
materials intensity
P5 Restricted substances content
P6 Annual energy iintensity
O8 Proportion of natural land
I3 Recycled/reused content
consumption
P7 Annual greenhouse gas production
Steps to master indicators
Step 1M
Step 1M
Step 7T k
Step 7T k
Understand• Map
impacts & set priorities
• Map impacts & set priorities
• Take action to improve performance
• Take action to improve performance
Improve
Step 2• Select
indicators
Step 2• Select
indicators
Step 6• Review and
monitor indicators
Step 6• Review and
monitor indicators
Step 3• Measure
Step 3• Measure
Step 5• Evaluate
d
Step 5• Evaluate
d
indicatorsindicators
your inputsyour inputs
Step 4• Assess
Step 4• Assess
product impactsproduct impacts
Assess operationsAssess operations
Measure
Good practice – Calstone (US)p ( )• Metal furniture manufacturer
• Introduced a spray to degrease components • Introduced a spray to degrease components … reduced chemical use by 60%
• Installed a water tank to reuse cooling water • Installed a water tank to reuse cooling water … water use reduced by 65%
• Rainwater collected for flushing toiletsRainwater collected for flushing toilets
• Skylights installed and grow plants
• Hung polystyrene foam from the ceiling to • Hung polystyrene foam from the ceiling to reduce space for air conditioning
• Buy green electricityBuy green electricity
• Launched remanufacturing programme
Key elements in Web Portalwww.oecd.org/innovation/green/toolkit
• Home page … Explain objectives and overall structure
Wh t’ S t i bl M f t i ?• What’s Sustainable Manufacturing?
• Action steps … Steps in booklet with further links
• Indicators Technical explanation of 18 indicators• Indicators … Technical explanation of 18 indicators
• Essential … Guidance on 47 data items to collect
• Technical advice … Guidance on normalisation, ,boundaries, trade-offs, etc.
• Good practices … Business examples fit with Steps
• Data tools … A worksheet and conversion factors
• Glossary … Important terminology
Useful links Links to national sectoral and other • Useful links … Links to national, sectoral and other initiatives and tools
Evolution of green manufacturingEvolution of green manufacturing
Eco-efficiency
Lifecycle Manageme
Closed-loop
P d ti
Industrial Symbiosis
Production Process
Pollution Control
Cleaner Production
efficiencynt Production Symbiosis
E New New Mass Green products
Eco-design
New business models
New modes of provision
Mass applicati
onProduct & Service
Organisational Boundary
I t l i ti R di l i tiIncremental innovation Radical innovation
To be launched soon!To be launched soon!
• Guide & Web Portal to be launched worldwide
• Dissemination ideas are welcome!
• Feedback from users help further update
• 1st report from the j il blproject available