Life Cycle Assessment - A Guide for Sustainability and Strategy Execu:ves David Schatsky
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ISSP Conference 2011
Life Cycle Assessment
A Guide for Sustainability and Strategy Execu:ves
David Schatsky
September 22, 2011
About Green Research
• Research, advisory and consul:ng firm
• Focus on corporate sustainability, clean tech,
alterna:ve energy
• Offer market intelligence, strategic advice,
best prac:ces
• Tools: execu:ve research; consumer research;
case studies; market forecasts
• Based in New York City
2 © 2011 Green Research
The Product Life Cycle
Extrac:on of
Incinera:on Raw Materials
and Disposal
Recovery
Reuse and Design and
Recycling Recycling Produc:on
materials/components
Reuse
Use and Packaging and
Maintenance Distribu:on
Source: Chart at hWp://www.admin.cam.ac.uk/
3 © 2011 Green ResearchLife Cycle Assessment Methodology
1. Defini:on of Goal
and Scope
4. Interpreta:on
2. Inventory Analysis
of Results
3. Impact Assessment
Source: ISO
4 © 2011 Green ResearchInterest in LCA Is Surging
1000
902
900
800
Publica7ons Referencing
"Life Cycle Assessment"
696
700 636
600
500 473
399 412
400
295
300
200 178 205
137 145
100
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Apr‐15
Source: sciencedirect.com (4/11)
5 © 2011 Green ResearchDownloads of LCA Research Studies
Skyrocke:ng
(in thousands)
200 190
180
160
Digital Downloads
140
116
120
100
80
57
60
40 22
20
0
2007 2008 2009 2010
Source: Springer 2010 publisher's report for "The Interna:onal
6 © 2011 Green Research
Journal of Life Cycle Assessment "Significant Adop:on of LCA among
Manufacturers and Major Retailers
Formulated Goods Durable Goods Retailers
Consumer Coca‐Cola, Henkel, Dell, ElectroLux, Ford, Alliance Boots,
Products Pepsico, Unilever HewleW‐Packard, Levi Marks & Spencer,
Strauss, Motorola, Walmart, Tesco
Nokia , Philips,
Timberland, Toyota
Industrial AkzoNobel, BASF, Alcatel‐Lucent,
Products LANXESS Armstrong World
Industries, Herman
Miller
Source: Green Research, the companies
7 © 2011 Green ResearchCompanies Are Promo:ng their Use of
LCA
8 © 2011 Green Research9 © 2011 Green Research
Academic Work in LCA Largely Mirrors
Demand from Industry
Manufacturing 70%
Agriculture, Forestry, Fishing, Hun7ng 65%
Waste Management and Remedia7on Services 61%
U7li7es 52%
Construc7on 52%
Transporta7on and Warehousing 48%
Mining, Quarrying, and Oil and Gas Extrac7on 44%
Public Sector/Government 30%
Educa7onal Services 26%
Accommoda7on and Food Services 26%
Prof., Scien7fic & Technical Services 22%
Informa7on 22%
Real Estate, Rental and Leasing 17%
Retail Trade 13%
Finance and Insurance 13%
Other Services (except Public Sector/Government) 9%
Health Care and Social Assistance 9%
Arts, Entertainment, Recrea7on 9%
Ques:on: For which
industries has your ins:tu:on 0% 50% 100%
conducted or peer‐reviewed
LCAs? (Select all that apply)
Source: Green Research Academic LCA Survey (4/11), n=23
10 © 2011 Green ResearchLCA Can Deliver Mul:ple Business
Benefits
• Lower costs
• Increased revenues
• Ability to respond to customer inquiries
• Market access
• Brand enhancement
• Quan:ta:ve basis for corporate sustainability
11 © 2011 Green ResearchAdopters of LCA Cite Expecta:ons of
Numerous Benefits
Will enable us to make be_er 61%
products
Enables us to respond to 61%
customer inquiries
Puts sustainability on scien7fic 57%
foo7ng
Enhances our brand 44%
Will help make us more efficient 35%
Will lower our costs 26%
Will increase our revenues 13%
Helps us with compliance 13%
Ques:on: WhichI see
bestli_le or no business benefit 4%
reflects your thinking on
the business benefits of
LCA? 0% 20% 40% 60% 80% 100%
Source: Green Research Sustainability Execu:ve Survey (4/11), n=23
12 © 2011 Green ResearchAt Leading Companies, Sustainability
Departments Open Funding LCA
Mul7ple
34%
Sustainability
department
46%
Research and
Ques:on: What development
department budget Product
8%
funds LCA at your development Supply chain
company? 8% 4%
Source: Green Research Sustainability Execu:ve Survey (4/11), n=24
13 © 2011 Green ResearchGoals and Complexity Drive Cost
Inaccessible
Data
Complex High
Complexity
Supply Cost Zone
Chain $50K ‐ $100K+
Moderate
Cost Zone
$25K ‐ $50K
Simple Low
Supply Cost Zone
Chain $10K ‐ $20K
Screening Internal Benchmarking Compe::ve Claims
Goal
Source: Green Research analysis (5/11)
14 © 2011 Green ResearchScan and Marke:ng‐Oriented LCAs
Most Popular Today
Scan/screening level LCA 61%
Full product LCA (peer reviewed) 52%
Detailed internal LCA 44%
Industry‐wide 26%
Other (please specify) 17%
Ques:on: What type(s) of LCA
has your company done over 0% 50% 100%
the last 12 months? (Please
select all that apply.) Percent of Companies that Performed LCAs
Source: Green Research Sustainability Execu:ve Survey (4/11), n=23
15 © 2011 Green ResearchLCA Costs Decline With Organiza:onal
Maturity
Cost/Effort
Year 1 Year 2 Year 3 Year 4 Year 5
Source: Green Research analysis (5/11)Costs Are More Modest than Open
Assumed
$100,001 to
$500,000
9% Up to $10,000
Nothing 9%
9%
$50,001 to
$100,000
27%
$10,001 to
Ques:on: How much has $30,000
your company spent on 28%
$30,001 to
LCA tools, services and
$50,000
training over the last 12
18%
months (excluding
internal staff)?
Source: Green Research Sustainability Execu:ve Survey (4/11), n=22
17 © 2011 Green ResearchStrong Growth in Use of LCA to
Con:nue
Conduct at least one in the next year 82%
Train staff to do LCA 23%
Hire staff to do LCA 14%
Conduct at least one in 12‐24 months 14%
Acquire LCA sogware 9%
Ques:on: What are your
company’s future plans
for using life cycle 0% 50% 100%
assessment?
Source: Green Research Sustainability Execu:ve Survey (4/11), n=23
18 © 2011 Green ResearchDrivers and Inhibitors of LCA Adop:on
Takes :me to embed in a
company
Percep:on of high costs
Standards, best prac:ces s:ll
emerging
Beyond low‐hanging fruit
Transparency expecta:ons
Eco Labeling
Regula:ons
Low‐cost tools
Open‐source efforts
BeWer data
Source: Green Research analysis
19 © 2011 Green ResearchGreater Awareness, BeWer Tools and
BeWer Data Will Increase Adop:on
Managers are not aware of the benefits 63%
Conduc7ng an LCA takes too long 58%
Shortage of exper7se in the marketplace 58%
Lack regula7ons that require it 50%
Conduc7ng an LCA is too expensive 50%
Tools are too hard to use 38%
Tools are too expensive 33%
No major barriers 4%
Ques:on: What do you think are
the major barriers to adop:on of
Other 17%
LCA in industry and the public
sector? (Select all that apply.) 0% 20% 40% 60% 80% 100%
Source: Green Research Academic LCA Survey (4/11), n=24
20 © 2011 Green ResearchTo Tap LCA for Innova:on, Develop an
In‐house Capability
Outsource When In House When
Use will be intermiWent Your firm has strong engineering/design
skills
Focus is on marke:ng claims You have a proven ability to adopt and
ins:tu:onalize innova:ons
Your company is unready to make a mul:‐ Want to embed life cycle thinking into
year commitment of resources your product development process
But: your internal staff will need to help Will be conduc:ng more than 4–5 LCAs
consultants gather data regardless per year
21 © 2011 Green ResearchBe Strategic about Which Products to
Study
Company Strategy Capability
Dell First LCAs were of top products in Outsourced studies,
each of three categories managed by internal
LCA expert
Unilever LCA or similar for every product In house
AkzoNobel Any investment over €5 million; and In house
products with unique environmental
proper:es
Global New ventures; products with complex In house
Manufacturer with environmental message
$11B in revenues
Johnson & Johnson Reserve full‐blown LCAs for when Outsource full‐blown
demanded by important customers or LCAs; do screening
regulatory considera:ons; use light with in‐house tools.
screening methods other :mes
22 © 2011 Green ResearchAdvice
• To tap LCA for innova:on, develop an in‐house
capability
• Be strategic about what products to study
• Make sure your LCA has impact by :ming it to
budget cycles and involving key stakeholders
• Start building or boos:ng internal LCA
exper:se
23 © 2011 Green ResearchCase Studies
• Toyota Motor Sales
• Nike
• Stonyfield Farm
• AkzoNobel
• Armstrong World Industries
• HewleW‐Packard
• GlaxoSmithKline
• Yakima Products
24 © 2011 Green ResearchContact: David Schatsky Full report and findings +1 (646) 783‐8337 available online at dschatsky@greenresearch.com greenresearch.com greenresearch.com
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