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An increasing number of companies position their products in the market as enablers of emission reductions. For a successful market introduction of such products, it is essential to communicate emission reductions in a credible and comparable way. Methodologies, based on Life Cycle Assessment, have been developed by individual companies and at sector level. This presentation discusses a number of methodological issues, inventoried by WWF, Ecofys, Utrecht University and a number of leading companies. It was held by Annemarie Kerkhof, Senior Consultant Supply Chains at Ecofys, during the Life Cycle Management Conference (LCM) in Gothenburg, Sweden, on 27 August 2013.
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Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
27/08/2013
Accounting and communicating emission reductions enabled by green product portfolios
© ECOFYS | |
Avoided emissions
Scope 1, 2 & 3
Activities of companies to reduce their emissions
27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
Company
Emission reduction at the
facilities of the company itself
Emission reduction in the
company’s value chain
Emission reduction enabled by
green product portfolios
Low-carbon
economy
© ECOFYS | |
Use
What are avoided emissions?
27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
Product X
Material
acquisition Production End-of-life
Material
acquisition Use Production End-of-life
Product A
Emission reduction
enabled by product X
Company A
Solution
provider
© ECOFYS | |
Use
Example: Fuel-efficient car tyres
27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
Additive for
car tires
Material
acquisition Production End-of-life
Material
acquisition Use Production End-of-life
Car
Emission reduction enabled
by chemical additive
Car manufacturer
Chemical company
© ECOFYS | |
Why communicating about avoided emissions?
27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
Use
Product X
Material acquisition
Production End-of-life
Material acquisition
Use Production End-of-life
Product A
Company A
Solution
provider
Benefits of communicating avoided emissions
• Marketing of products. Emission savings (and cost savings)
is a feature of the product in addition to quality and price
• Differentiate from competitors by communicating the total
amount of avoided emissions related to the company’s green
product portfolio
• Raising awareness at value chain partners and stakeholders,
like policy makers
• Engage with NGO’s, e.g. avoided emissions is one of the
criteria in the WWF Climate Savers Program
Emission reduction enabled by product X
© ECOFYS | |
How to calculate avoided emissions?
27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
Use
Product X
Material acquisition
Production End-of-life
Material acquisition
Use Production End-of-life
Product A
Emission reduction enabled by product X
Company A
Calculating avoided emissions
• Credibility of results is highly important
• Methodologies/guidelines have been
developed:
ICT (GeSI) Chemical sector
(WBCSD/ICCA)
Individual companies
Solution
provider
© ECOFYS | |
Methodological challenges
> How to select a baseline?
> How to distribute avoided emissions along the value chain?
> Inclusion of multiple environmental impacts needed?
> Lack of an international standard
27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
© ECOFYS | |
Use
How to select a baseline?
27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
Product X
Material
acquisition Production End-of-life
Material
acquisition Use Production End-of-life
Product A
Company A
Solution
provider
Use Material
acquisition Production End-of-life Baseline
Baseline:
• Old product
• Product with same function in the market with high sales volume
• Industry average
© ECOFYS | |
Use
How to distribute avoided emissions?
27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
Additive for
car tires
Material
acquisition Production End-of-life
Material
acquisition Use Production End-of-life
Car
Car manufacturer
Chemical company
Car tires
Material
acquisition Use Production End-of-life
Tire manufacturer
How to allocate avoided emissions to value chain partners?
Important to avoid double counting.
© ECOFYS | |
Focus on
reducing
problems
Focus on
solutions
Reducing impacts and focusing on solutions
27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
© ECOFYS | |
Contact details
Ecofys Netherlands B.V.
Kanaalweg 15G
3526 KL Utrecht
The Netherlands
Annemarie Kerkhof
Senior Consultant
T: +31 (0)30 662-3047
I: www.ecofys.com
27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
