Life Cycle Analysis for Green Investment Data quality, key impacts & benchmarking - LCA Forum

Page created by Edna Lowe
 
CONTINUE READING
Life Cycle Analysis for Green Investment Data quality, key impacts & benchmarking - LCA Forum
Life Cycle Analysis for Green Investment

         Data quality, key impacts &
               benchmarking

 Damien Friot (damien.friot@epfl.ch), Josef Kaenzig, Myriam Saade,
 Manuele Margni, Olivier Jolliet

 EPFL, Ecole Polytechnique Fédérale de Lausanne
 Environmental science and technology institute
 Industrial Ecology - Life Cycle Systems
                                                Green Investment forum -EPFL, 07.06.05
Outline

From a quantitative perspective:

1. What can be the use of & how to check Environmental Reports ?

2. How to assess the environmental impacts of companies ?

3. How to benchmark corporate environmental performances ?

  With examples from automotive & pharmaceuticals industries
               (collaboration with Centre-Info)

                                            Green Investment forum -EPFL, 07.06.05
“Mainstream” assessment: qualitative

1. Company’s environmental characteristics
    – Large panel of heteroclite issues
    – Partial view
    – Focus on the company

           company           external
  0%                                    100 %

 2. Selection procedure
     – Based on exclusions & common sense
 3. Ranking
     – Among companies of the same “investment sector”
     – Preferences rather than true performance

                                                Green Investment forum -EPFL, 07.06.05
A life cycle perspective: key issues

    Supply chain       Production          Use                 Disposal

        => a chain of actors/activities to deliver a service

• Holistic: direct + indirect (up & downstream)
• Function: equivalent services (vs same sector)
• Aggregation: impact assessment: reduction of indicators
• Model + data: bottom-up & top-down approaches + use of
  engineering & technical data

    => On the hedge of maturity: Increasing standardisation &
                   development of databases

                                                  Green Investment forum -EPFL, 07.06.05
1. Quality of environmental reporting

Coverage of Environmental Reporting (ER)

Environmental indicators in the automotive industry                  Frequency (12)
Energy (GWh) & Water (m3 ) consumption, Industrial waste (tons)              10-12

GHG & VOC emissions (tons), Common waste (tons), Discharges                  8–5
to water (m3)
Environmental expenditures (Euro), NOx, C, PM (tons)                         4–1

• Geography (1 site/area), Turnover (geog.), Life Cycle (on-site)
• Energy: Final vs grey (+30% per MJ)
     – Non renewable primary energy (hydro vs fossils fuels)
• Green House Gases: CO2 or CO2 equivalent?
• Meta-data: Units, structural issues

                                                        Green Investment forum -EPFL, 07.06.05
Validation techniques

First attempts

• Evolution over time: structural changes (M&A) ?
• Comparisons within the same inv. sector: diversified activities?
      – Median value (1st est.)
      – Example: BMW 80% auto, 17% finance, 3% motorbike

LCA intelligence

• References values per sector
     – Data transformation
     – Basis for comparison (value-added, turnover, EBIT,
        employee, units produced)
• Ratios:        [CO2/non renewable primary energy]
      – Internal coherence
                                                Green Investment forum -EPFL, 07.06.05
Basis for comparison (energy cons.)

Automotive industry
                                                                                                           Per turnover                                                                                                                                                   Per added value
                                      1200000                                                                                                                                                                                     1600000
  Energy consumption [MJ/million $]

                                                                                                                                                                                     Energy consumption [MJ/ million $ of value
                                                                                                                     2002        2001         2000                                                                                            2002       2001          2000
                                                                                                                                                                                                                                  1400000
                                      1000000

                                                                                                                                                                                                                                  1200000
                                       800000
                                                                                                                                                                                                                                  1000000

                                                                                                                                                                                                     added]
                                       600000                                                                                                                                                                                     800000

                                                                                                                                                                                                                                  600000
                                       400000
                                                                                                                                                                                                                                  400000
                                       200000
                                                                                                                                                                                                                                  200000
                                                0.23                                                                    330                                                                                                                  0.8                          8200

                                            0                                                                                                                                                                                          0
                                                BMW    Daimler    Fiat   Ford                          Generalmotors Mitsubishi PSA Peugeot Volkswagen                                                                                       BMW     Daimler    Fiat          Ford   Generalmotors Mitsubishi PSA Peugeot Volkswagen
                                                       Chrysler                                                                   Citroën                                                                                                            Chrysler                                                   Citroën

                                                                                                                                 Per unit produced (car)
                                                                                                       40000
                                                                         Energy consumption [MJ/car]

                                                                                                                                                                              2002                                      2001          2000

                                                                                                       30000

                                                                                                       20000

                                                                                                       10000

                                                                                                                    0.014                                                       23

                                                                                                             0
                                                                                                                    BMW       Daimler       Fiat         Ford   Generalmotors Mitsubishi PSA Peugeot Volkswagen
                                                                                                                              Chrysler                                                     Citroën                                                   Green Investment forum -EPFL, 07.06.05
Ratio [CO2 /non ren. primary energy]

                                                  250
                                                                                               (analysis based on ecoinvent 1.1, 2004)
                                                                                 Cement
 Ratio [gCO2 / MJ non renewable primary energy]

                                                  200

                                                                                 Electricity
                                                  150                               mix
                                                                                                      Nuclear
                                                                                                       power
                                                  100

                                                  50

                                                              Pesticides
                                                    0
                                                        0                  500       1000        1500                2000                2500
                                                            About 2500 products and services (use stage and disposal not
                                                            taken into account) Number of product or service
                                                                                                           Green Investment forum -EPFL, 07.06.05
Ratio [CO2 (eq.) / final energy]
Banks                        Ratio: GHG / final   Automotive companies          Ratio: GHG / final
                             energy                                             energy
                             [gCO2 / MJ]                                        [gCO2 / MJ]

ABN AMRO                             56           BMW                                   89

Banca Monte Paschi Siena            141           Daimler Chrysler                     108

Citigroup                           115           Ford                                97212

Credit suisse group                 141           Generalmotors                         79

HBOS                              111241          PSA Peugeot Citroën                   35

KBC                                  48

Royal Bank of Scotland               87

San Paolo IMI                       117

UBS                                 106

Westpac Banking                     345

            Expected values: 30 – 150 gCO2 (eq.) /MJ final energy
                                                               Green Investment forum -EPFL, 07.06.05
2. Identification of key impacts

        1                   2                            3
Industry chain          Relevant                 Company
    Profile             Indicator                 Model

-Hybrid Screening    - Function oriented       - Reconstruction
    - Process LCA                                  - processes
    - Input-Output   - Upstream: suppliers         - activities
                     - Prod: on-site               - products
- Reference          - Use: products
    - Processes      - Disp: products          -Selection /Aggreg.
    - Sectors                                   of indicators
    - Product
    - Company

                                             Green Investment forum -EPFL, 07.06.05
Synthesis: Life Cycle & impacts

Pharmaceuticals
                 Key impacts                                                      Life cycle                                                                                                                                                                                                       Key indicators
                                      Im p a c ts c lé s                                         P o in t s c lé s p o u r l'im p a c t e n v ir o n n e m e n t a l

                                                                                  T ra n s p o rt d e s
                                                                                  re p ré s e n ta n ts                 P a c k a g in g                                          R e j e t d e m é d ic a m e n t s                                                                                I n d ic a t e u r s c lé s

                                                                                                                                                           Masse de l'emballage

                                                                                                                                                                                                                                                    Toxicité et écotoxicité
                                      + : I n f lu e n c e f a ib le

                                                                                                    Type de transport
                                      + + : I n f lu e n c e m o y e n

                                                                                                                                                                                                                                  l'environnement
                                                                                                                        Composition de

                                                                                                                                                                                                                                                                              du médicament
                                                                                                                                                                                                                 relarguée dans
                                                                                                                                                                                                   médicaments
                                      + + + : I n f lu e n c e im p o r t a n t

                                                                                                                                                                                     Quantité de
                                                                                                                                             l'emballage
                                                                                      Distance
                                      P h a s e d a n s le c y c le d e v ie

Ressources       C o n s o m m a ti
                 on de
                 m a t iè r e s
                                      E x t r a c t io n d e s m a t iè r e s
                                      C h a î n e d e s f o u r n is s e u r s
                                      P r o d u c t io n
                                                                                                                                         +

                                                                                                                                         +
                                                                                                                                                                +
                                                                                                                                                                                                                                                                                                    k g s u b s t a n c e e x t r a it e / e m b a lla g e
                                                                                                                                                                                                                                                                                                    k g d 'e m b a lla g e / k g s u b s t a n c e a c t iv e

                 p r e m iè r e s     U t ilis a t io n
                                      F in d e v ie                                                                                      +

Global Warming
                 E ffe t d e          E x t r a c t io n d e s m a t iè r e s                                                            +                                                                                                                                                          T a u x d e r e c y c la g e
                 s e rre                                                                                                                                                                                                                                                                            K m p a rc o u ru s
                                      C h a î n e d e s f o u r n is s e u r s        ++            ++                                                          +                                                                                                                                   M J é n e r g ie p r im a ir e n o n - r e n o u v e la b le o u / e t
                                                                                                                                                                                                                                                                                                    é m is s io n s d e C O 2 / 1 0 0 k m
                                      P r o d u c t io n                                                                                 +
                                      U t ilis a t io n
                                      F in d e v ie                                                                                      +

Human health     S a n té
                 h u m a in e
                                      E x t r a c t io n d e s m a t iè r e s
                                      C h a î n e d e s f o u r n is s e u r s
                                      P r o d u c t io n
                                      U t ilis a t io n                                                                                                                                                                                                               ++
                                                                                                                                                                                                                                                                                                                                                                1
                                                                                                                                                                                                                                                                                                    k g s u b s t a n c e r e la r g u é e / k g p r o d u it
                                      F in d e v ie                                                                                                                                                    +++                                                  +++
                                                                                                                                                                                                                                                                                                    E C 5 0 s u b s ta n c e

Ecosystems       Q u a lit é d e s
                 é c o s y s tè m e
                 s
                                      E x t r a c t io n d e s m a t iè r e s
                                      C h a î n e d e s f o u r n is s e u r s
                                      P r o d u c t io n

quality
                                      U t ilis a t io n
                                                                                                                                                                                                                                                                                                                                                                1
                                                                                                                                                                                                                                                                                                    k g s u b s t a n c e r e la r g u é e / k g p r o d u it
                                      F in d e v ie                                                                                                                                                    +++                                                  +++
                                                                                                                                                                                                                                                                                                    E C 5 0 s u b s ta n c e

                                      I n d ic a t e u r s c lé s

¾ Main impacts: Human health & ecosystem quality
¾ Travel of sales people is dominant

                                                                                                                                                                                                                                                                                              Green Investment forum -EPFL, 07.06.05
Env. impacts from economic data

  Econ. & technical data                                  LCA data
Purchases, on-site, sales, products      +           LCI DB, LCIA methods

       Pharmaceuticals: Energy balance & costs (Green-e)
            100%
                                                        R&D (énergie)
                                                        Sales representants
             80%                                        Transport of produits
                                                        Transport of raw materials
                                                        Business travel
             60%
                                                        Employees commuting
                                                        Waste treatement
             40%                                        Buildings
                                                        Packaging
             20%                                        Heating
                                                        Raw materials
                                                        Electricity
              0%
                     Primary       CO2       Costs
                     Energy      Emissions              Green Investment forum -EPFL, 07.06.05
Data comparison: automotive ind.

Energy consumption due to 1 million $ output of the automotive industry
      Process-LCA: Schweimer et al., 2000
        Process-LCA: Humbert et al., 2003
        Process-LCA: Humbert et al., 2004
        Process-LCA: ecoinvent 1.01, 2003
 I/O-LCA 1997: Vehicles & car bodies, 2004
 I/O-LCA 1997: Vehicles & car bodies, 2002
                      Env. reports: Median
                     Env. reports: Average
             Env. reports: max (Ford 2000)
             Env. reports: min (BMW 2002)
         Env. reports: General Motors, 2002                                        On-site and energy supply
                                                                                   Supply chain
                                         0
                                                                                   Services (excluded in process LCA)
   Env. reports: PSA Peugeot Citroen, 2002
                                                                                   Use stage
             I/O-LCA 1997: 4 sectors, 2004                                         Road infrastructure
             I/O-LCA 1997: 4 sectors, 2002                                         Disposal
                                              0   4000   8000   12000   16000   20000   24000   28000   32000    36000   40000

                                                                                 Non renewable primary energy [GJ /million $]

                             Hypothesis: 1.59 passenger/vehicle, 150000 km/vehicle, ~21’000 $/vehicle
                               Energy efficiency: USA / Average of industrial countries = 360/238 = 1.5
                                                                                          Green Investment forum -EPFL, 07.06.05
Data comparison: automotive ind.

Energy consumption due to 1 million $ output of the automotive industry
      Process-LCA: Schweimer et al., 2000
        Process-LCA: Humbert et al., 2003
        Process-LCA: Humbert et al., 2004
        Process-LCA: ecoinvent 1.01, 2003
 I/O-LCA 1997: Vehicles & car bodies, 2004
 I/O-LCA 1997: Vehicles & car bodies, 2002
                      Env. reports: Median
                     Env. reports: Average
             Env. reports: max (Ford 2000)
                                                     Covered by environmental reports
             Env. reports: min (BMW 2002)
         Env. reports: General Motors, 2002                                        On-site and energy supply
                                                                                   Supply chain
                                         0
                                                                                   Services (excluded in process LCA)
   Env. reports: PSA Peugeot Citroen, 2002
                                                                                   Use stage
             I/O-LCA 1997: 4 sectors, 2004                                         Road infrastructure
             I/O-LCA 1997: 4 sectors, 2002                                         Disposal
                                              0   4000   8000   12000   16000   20000   24000   28000   32000    36000   40000

                                                                                 Non renewable primary energy [GJ /million $]

                             Hypothesis: 1.59 passenger/vehicle, 150000 km/vehicle, ~21’000 $/vehicle
                               Energy efficiency: USA / Average of industrial countries = 360/238 = 1.5
                                                                                          Green Investment forum -EPFL, 07.06.05
Data comparison: automotive ind.

Energy consumption due to 1 million $ output of the automotive industry
      Process-LCA: Schweimer et al., 2000                                                                       Use phase
        Process-LCA: Humbert et al., 2003
        Process-LCA: Humbert et al., 2004
        Process-LCA: ecoinvent 1.01, 2003
 I/O-LCA 1997: Vehicles & car bodies, 2004
 I/O-LCA 1997: Vehicles & car bodies, 2002
                      Env. reports: Median
                     Env. reports: Average
             Env. reports: max (Ford 2000)
             Env. reports: min (BMW 2002)
         Env. reports: General Motors, 2002                                        On-site and energy supply
                                                                                   Supply chain
                                         0
                                                                                   Services (excluded in process LCA)
   Env. reports: PSA Peugeot Citroen, 2002
                                                                                   Use stage
             I/O-LCA 1997: 4 sectors, 2004                                         Road infrastructure
             I/O-LCA 1997: 4 sectors, 2002                                         Disposal
                                              0   4000   8000   12000   16000   20000   24000   28000   32000    36000   40000

                                                                                 Non renewable primary energy [GJ /million $]

                             Hypothesis: 1.59 passenger/vehicle, 150000 km/vehicle, ~21’000 $/vehicle
                               Energy efficiency: USA / Average of industrial countries = 360/238 = 1.5
                                                                                          Green Investment forum -EPFL, 07.06.05
3. Benchmarking for the use phase
Automotive industry

                “Average emissions of a generic car
                      per company [gCO2/km]”

       Technology Eff.         vs        Marketing Strategy

Required data: 1. CO2 emissions per vehicle
               2. Composition of the car fleet of each
                  company
               3. Sales per vehicle
                                             Green Investment forum -EPFL, 07.06.05
Partial results: different rankings

                    gCO2/km   % Etiqu. A&B
                              Energy-Label      Ranking based       DonnéesSam
                                                                    Ranking CI
                              (class A, B, …)   on env. reports       and WRI

FIAT                 160            2                 5                   ?

VW                   176            1                 2                   6

TOYOTA               179            4                 3                   1

DC                   209            3                 4                   5

BMW                  212            5                 1                   8

Life cycle stage:    Use         Use            Production              Use

¾ The ranking based on the use phase: opposite to the ranking
  established with data from environmental reports
¾ Evaluations with high quality expectations are time intensive
                                                           Green Investment forum -EPFL, 07.06.05
Conclusion

• Low reliability of current corporate environmental data

   – Incomplete coverage
   – No focus on key impacts & key phase

      => Monitoring of companies effort/compliance
      => Low comparability: No benchmarking

• Life-cycle data for Identification of key impacts & aggregation
   – Multiple approaches are required

• Benchmarking: complement a qualitative approach
   – Open questions:
      • Relative vs absolute
      • Sum of activities or average/optimal profile
                                              Green Investment forum -EPFL, 07.06.05
You can also read