The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
Joost Vogtlander_Life Cycle Assessment - part 1
1. course/learning collection E. PRODUCT LCD ECODESIGN subject E3. Life Cycle Assessment & Methodologies learning resource Life Cycle Assessment contributors: Joost G. Vogtl ä nder Delft University of Technology/ Industrial Design Engineering / The Netherlands LeNS, the Learning Network on Sustainability: Asian-European multi-polar network for curricula development on Design for Sustainability focused on product service system innovation. Funded by the Asia-Link Programme, EuroAid, European Commission.
2. Life Cycle Assessment (LCA) The aim of Life Cycle Assessment (or Analyses) is to provide a quantitative answer on the question whether a product and/or service is ‘green’ or not What is this method? When do you use it? What is behind it? How do you apply it in practice? (a Case) Issues you should be aware of ! P P P
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4. People Profit www.ecocostsvalue.com Fig. 1.2 complex trade-off: short term – long term distribution of prosperity (our own prosperity) (the poor in the 3rd world) Planet (our future environment) LCA model - pollution - materials depletion Goal&Scope LCI LCIA Cases Issues LCA is about 1 aspect of Sustainability: the P of Planet …… however, it has also a bit to do with the economy
5. “ The delivery of competitively priced goods and services that satisfy human needs and bring ‘quality of life’, while progressively reducing ecological impacts and resource intensity, throughout the lifecycle, to a level at least in line with the earth’s estimated carrying capacity” (WBCSD, 1995) “ What we need now is a new era of economic growth – growth that is forceful and at the same time socially and environmentally sustainable.” (Brundtland, 1987) value ‘profit’ eco-costs ‘planet’ The triple P model is not about “or” but about “and” Goal&Scope LCI LCIA Cases Issues www.ecocostsvalue.com Fig. 1.1
6. companies consumer & citizen government politics regulations marketing www.ecocostsvalue.com Fig. 1.4 Interaction of the 3 stakeholders on the road towards sustainability Goal&Scope LCI LCIA Cases Issues
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8. Product portfolio matrix for product strategy of companies Goal&Scope LCI LCIA Cases Issues www.ecocostsvalue.com Fig. 4.4a Short Term no market Short Term success Long Term no market Quit now Long term Core Product Low High Quality/Costs High Low relative “ eco-burden” LCA
11. materials processing production recycling use maintenance emissions to water and soil emissions to air materials energy landfill An LCA provides data on the environmental burden “from cradle to grave” www.ecocostsvalue.com Fig. 2.1a Step 1: Life Cycle Inventory (LCI) Step 2: Life Cycle Inventory Analyses (LCIA) Goal&Scope LCI LCIA Cases Issues
12. Input: materials energy transport Output: Primary product or service (secondary product) (energy) Recycled materials waste land fill emissions to air emissions to water and soil Process and subprocesses The Life Cycle Inventory: the basic structure Goal&Scope LCI LCIA Cases Issues www.ecocostsvalue.com Fig. 3.1b
13. Example: Sheep for slaughtering at farm gate emissions to air 480 (!) lines There are LCIs of 5000 (!) processes in the Ecoinvent v2 and Idemat databases Goal&Scope LCI LCIA Cases Issues www.ecocostsvalue.com
14. 12 There are LCIs of 4500 (!) processes in the ecoinvent v2 and Idemat databases Example: Sheep for slaughtering at farm gate (the first level only) Goal&Scope LCI LCIA Cases Issues www.ecocostsvalue.com Fig. 3.3
15. 13 The “tree” of a meal Goal&Scope LCI LCIA Cases Issues www.ecocostsvalue.com kitchen sheep from farm butcher slaughter house vegetables from farm retail store food company wine from chateau wine boutique wine import emissions & materials depletion
16. The “tree” of a Senseo coffee machine Goal&Scope LCI LCIA Cases Issues www.ecocostsvalue.com materials materials materials materials materials materials assembly boiler + electrical materials housing materials water system materials emissions & materials depletion
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19. from Pré Goal&Scope LCI LCIA Cases Issues The Ecoindicator 99, a damage based system Source M. Goedkoop, www .pre.nl LCI result Raw materials Land use CO2 VOS P SO2 NOx CFC Cd PAH DDT Single score very sophisticated but quite complex rather subjective weighting Eco-systems Human health (DALY) Re-sources Ozone layer Climate Carcinogens Respiratory (2) Eco-tox acid. nutri. land use fossil fuels Minerals
20. Emissions to air, water soil Exposure Disabilities with several levels of severity Weighting of disabilities DALY Disability adjusted life years Food From emissions to human health, a complex calculation Goal&Scope LCI LCIA Cases Issues Source M. Goedkoop, www .pre.nl
21. Recipe, the new system, better, but even more complex Goal&Scope LCI LCIA Cases Issues Source M. Goedkoop, www .pre.nl Single score Resources Surpus cost Human health DALY Ecosystems PDF.m 2. .yr LCI result Raw mat. Land use CO2 VOS P SO2 NOx CFC Cd PAH DDT Decr. Ozone P. Ozone Conc. Hazard. W. Dose Absorbed Dose PM10 Conc. Infra-red Forcing Energy Content Decrease Conc. Hazard W. Conc. Algae Growth Algae Growth . Hazard W. Conc Hazard W. Conc. Occupied Area Base Saturation Transformed area Water use Climate Change Ozone depletion Radiation Hum tox Particulate Form. P. C. Ozone Form. Minerals Cons. Fossil fuel Cons. Marine Ecotox. Marine Eutr. Fresh water Eutr. Fresh W. Ecotox Nat. Land Transf. Urban Land Occ. Terr.Ecotox Agr. Land Occ. Terr. Acidif. Water Cons. Damage Damage Damage Damage Damage Damage Terr. Damage Fresh. Damage Marine Damage
22. “ the eco-costs are the costs of prevention measures, which are required to reduce the current emissions, to a sustainable level” Goal&Scope LCI LCIA Cases Issues A total different concept: the Eco-costs 2007 based on the ‘marginal prevention costs’ it are “hidden obligations” www.ecocostsvalue.com Fig. 2.1b X X X X X X X X materials production recycling use maintenance emissions to water and soil emissions to air materials energy X X X
23. Prevention costs norm for sustainability measures prevention 100% 0% line b curve a = “no effect level” Eco-costs are based on marginal prevention costs: www.ecocostsvalue.com Fig. 2.2a Goal&Scope LCI LCIA Cases Issues
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25. . Eco-costs Eco-costs of materials depletion Eco-costs of energy and transport Eco-costs of emissions electricity transport heat global warming acidification eco-toxicity eutrofication summer smog fine dust carciogenics metals fossil fuels emissions of substances to: air, water, ground “ system oriented” - oil - gas - coal - ferro - non ferro - wood substances “ midpoints” characterisation factors “ marginal prevention costs” normalisation factors addition (no weighting) “ eco-costs” wood The main structure of eco-costs (as a “single indicator” of LCA) www.ecocostsvalue.com Fig. 2.1a Goal&Scope LCI LCIA Cases Issues
26. The Life Cycle Inventory Analysis: Each emission has its own multiplier (example greenhouse gasses in Simapro) Goal&Scope LCI LCIA Cases Issues Eco-costs 2007: 1 kg CO2 equ = 0,135 € kg CO2 equ / kg Eco-costs of more than 3000 substances in total
27. Goal&Scope LCI LCIA Cases Issues “ Fast track”: don’t bother about LCI and LCIA but take directly the output data of from an excel table (more than 5000 single indicators) www.ecocostsvalue.com tab data www.ecocostsvalue.com materials Eco-costs Carbon Footprint Ecoindicator 99 BEES
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32. The case: LCA on Transport Packaging the box and the crate, but what is the functional unit? www.ecocostsvalue.com Fig. 6.1b Goal&Scope LCI LCIA Cases Issues Corrugated BOX Plastic CRATE Size (L,W,H) (m) 0,6 x 0,4 x 0,24 0,6 x 0,4 x 0,24 Volume (litres) 53,40 43,92 Weight (kg) 1,086 1,95 Eco-costs (€/kg) 0,173 1,02 Eco-costs (€/unit) 0,188 2,00 Nr of trips 1 30 Eco-costs (€/trip) 0,188 0,067 Eco-costs (€/litre) 0,0035 0,0015 (green numbers are from the database) … .however, the functional unit is not packaging volume, but transport….
33. The case: LCA on Transport Packaging the key to low eco-costs is transport efficiency Goal&Scope LCI LCIA Cases Issues www.ecocostsvalue.com Fig. 6.1a (green numbers are from the database) Corrugated BOXES Plastic CRATES Litres per pallet 2670 2196 Litres per truck 69.420 57.096 Eco-costs of: - truck+trailer (€/km) 0,473 0,473 - driver (€/km) 0,015 0,015 - road €/km) 0,135 0,135 Subtotal (€/km) 0,623 0,623 Km full loaded t+t 500 + 500 * 0,3 = 650 km 500 + 500 = 1000 km Eco-costs (€/trip) 405 623 Eco-costs (€/litre) 0,0058 0,0109 Full-load Truck+trailer (26 pallets, distance 500 km)
34. Plastic crate Corr. board tray storage packaging transport 0 0,01 0,02 0,03 0,04 0,016 0,012 0,004 0,008 Value (Euro per litre) Eco-costs (Euro per litre) (no return freight) feeding The case: Transport of vegetables from a Dutch greenhouse to a retail shop in Frankfurt (FEFCO study, corrugated board tray system with 70% return freight) www.ecocostsvalue. com Fig. 6.1d Goal&Scope LCI LCIA Cases Issues
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36. Issue 2. Quality Life Cycle Analyses is about comparison of 2 or more solutions This implies that the following must be the same: 1. The Functionality of the product and/or service 2. The Quality of the product and/or service However, in innovation different solutions always differ in quality aspects. Do not try to bring these quality aspects in LCA (apply the ecocosts/value model) Goal&Scope LCI LCIA Cases Issues www.ecocostsvalue.com
37. Issue 3. Allocation Goal&Scope LCI LCIA Cases Issues When the output of a system has more than 1 product (or service), the ecoburden (Points 99, Eco-costs, CO2equi) has to be allocated according to their economic value: Source M. Goedkoop, www .pre.nl Lumber Sawdust Bark 10% 40% 50% mass income 80% 20% 0%
38. “ classical” boundary limit eco-costs system Issue 4. Carbon sequestration (=capture&storage) www.ecocostsvalue.com Goal&Scope LCI LCIA Cases Issues forests (plantation) production boxes paper mill wood use paper waste paper landfill waste paper CO2 CO2 Captured CO2 use boxes energy CO2 energy CO2 energy CO2 forests (plantation) production boxes paper mill wood use paper waste paper landfill waste paper CO2 CO2 Captured CO2 use boxes “ new” boundary limit Eco-indicator ’99 system: energy CO2 energy CO2 energy CO2
39. production use (20 yr) recycling 100% 40% Issue 5. Recycling percentage www.ecocostsvalue.com Goal&Scope LCI LCIA Cases Issues
40. Issue 6. Cradle to Cradle calculations www.ecocostsvalue.com Fig. 2.3 Goal&Scope LCI LCIA Cases Issues production Separation use maintenance materials energy Upgrading: - materials - waste materials Immobilization refinement production materials recycle flows object renovation re - use of components incineration Land fill production Separation use maintenance materials electr power plant Upgrading: - materials - waste materials Immobilization refinement production materials recycle flows object renovation re - use of components waste incineration Land fill storage
41. Cradle to Cradle = “closing the loop” Case: Rebicycle www.ecocostsvalue.com Fig. 3.1b Goal&Scope LCI LCIA Cases Issues Input: materials energy transport Output: Bicyle electricity (land fill) (emissions to air) (emissions to water and ground) Case “Rebicycle” manufacturing Plantation (wood+oilseeds + flax, etcetera) Old Bicyle Power plant waste electr
42. Issue 7. Use LCA data right at the early design stages Output from Cambridge Engineering Selector (CES) Goal&Scope LCI LCIA Cases Issues www.ecocostsvalue.com Eco-costs (euro/kg) Fatigue strength at 10^7 cycles (Pa) the best choice