A Case Study - Proctor & Gamble
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Transcript of A Case Study - Proctor & Gamble
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1
Hamburg, June 14th 2002
By Tom Feijtel, PhDAssociate Director, Product Safety
Procter & Gamble
Assessment Toolsat Company LevelAssessment Toolsat Company Level
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Outline CONTEXT P&G
R&D Business Decision-making Environmental Management Framework
Sound Management of
Chemicals/Products Substitution ? Tools and Illustration
Conclusions
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Procter & Gamble Global consumer goods company Sales of > $40 billion/yr Operates in over 140 countries More than 300 brands
Laundry and cleaning products Personal care & beauty care products
Pampers, Tissue Towels Pharmaceuticals Food and petfood
Over 120 manufacturing sites worldwide
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STATEMENTOF
PURPOSE:
WE WILL PROV
IDEPRODUCTS OF SUPERIORQUALITY AND VALUE
THAT IMPROVE THELIVES OF THE WORLDS
CONSUMERS
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In practical termsIn practical terms
The integration of :
Economic Development
Social Responsibility
Environmental Protection
Improving
the
Quality ofLife.
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Sustainability
An operational definition
Sustainability
An operational definitionSustainable development is a
very simple idea. Its aboutensuring a better quality oflife for everyone, now and for
generations to come.Department of the Environment, Transportand the Regions, London, UK, February 1998
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R&D Business Decision-making
R&D-Business
Decision
Competition
Bench Marking
Performance/Value
Consumer Test
Organizations
Customer -
Consumers
ConsumerTests
Market
ResearchPerformance
CostLCI
data
Human &
Env RA Processing
Supply
Compliance and Risk Assessment :- Production & manufacturing compliance
- Chemical classification/labeling
- Chemical testing & registration
- Risk Assessment
- etc..
Efficient Resource
and
Waste Management
Addressing
Societal Concerns
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AN ENVIRONMENTALMANAGEMENTFRAMEWORK
Recognizes Four Key Elements: Human and Environmental Safety Regulatory Compliance Efficient Resource Use and Waste
Management Consideration of Social Concerns
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Organisation
Data
DECISION MAKING
Data
SafetyHuman Health Risk Assessment
Ecological Risk Assessment
Economic analysis
Product LCI
Eco-design
Disposal company auditing
Material consumption monitoring and reduction
Manufacturing site mgmt.. systems auditing
Manufacturing site environmentalauditing
Auditing major & new supplier s
Resource Use and
Waste Management
Regulatory Compliance Manufacturing site mgmt.. systems auditing
Manufacturing site wastes reporting Material consumption reporting
New chemicals testing and registration
Product & packaging classification & labelling
Understand & anticipate.
Interact
Addressing Social Concerns
OBJECTIVE
Economically (and technically) Feasible,
Socially acceptable,Environmental Management
towards Sustainability
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Environmental Management - an overall framework
Goal:Environmentally and Economically Sustainable Management
1.Human and
Environmental Safety
2.RegulatoryCompliance
3.Efficient
Resource useand waste
management
4.Addressing
societal concerns(i.e. understand &
respond)
Manufacturing sitecompliance auditing
Manufacturing sitewaste reporting (e.g.TRI)
Material consumptionreporting
New Chemical testingand registration
Product and packagingclassification andlabeling
Human health RiskAssessment(occupational andconsumer exposure
Environmental RiskAssessment at alllife-stages of thechemical (i.e.production,formulation, use anddisposal)
Tools:Manufacturing sitewastes and energyconsumption,monitoring andreduction
Material consumptionmonitoring andreduction
Supplier auditing
Product LCI/LCA
Eco-design
Economic Analysis
Understand:-Opinion surveys-Consumer and marketresearch-Networking
Respond:-public presentationsand publications-Scientific and industryworking groups-Reporting-Co-operation with otherstakeholders to findsolutions
Elements:
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AirEmissions
Aqueous
Emissions
Solid
WasteSubstitution ?
What, why,
How ?
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ENVIRONMENTAL
RISK
ASSESSMENT
HUMANRISK
ASSESSMENT
PRODUCT
Performance(e.g. consumer/product
Score/testing)
PRODUCTACCEPTABILITY(e.g. LCA, Cost-Benefit)
S
U
S
T
A
I
N
A
B
I
L
IT
Y
SOUND MANAGEMENT OF CHEMICALS
SOUND MANAGEMENT OF PRODUCTS
PR
O
D
U
C
T
D
E
V
E
L
O
PM
E
N
T
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TOOL BOX ?TOOL BOX ?
Risk Assessment
Lifecycle Assessment
Risk Management
Risk Communication
Cost-benefit
and many other .
Improving
the
Quality ofLife.
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RISK ASSESSMENTIS AN
ESSENTIAL BUSIN
ESS TOOL IN:
The Development of New Technologies, ProductIngredients and Manufacturing Processes
Industrial Site and Emissions Evaluations
Registrations and Discharge Permits
Natural Resource Damage Assessments
Precautionary and Environmental Labeling
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A HazardA Hazard -- Risk ContinuumRisk Continuum
((Adapted from Swanson and Socha 1997)
Hazard Risk
Toxicity +
Physical-
Chemical
Properties
Toxicity +
Physical-
Chemical
Properties +
Production/
Release
Toxicity +
Fate and
Transport
Model
Generic
Risk
Assessment
Endpoint-specific
Site-specific
Risk Assessment
Amount and Specificity of Data Required
Ranking and Scoring
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Chemical Use/
Avoidance
Prioritization/
Screening for
FurtherAssessment
Safe/Unsafe
Handling,
Production & Use
Hazard
Communication
Tools
Chemical
Ranking &
Scoring Tools
Risk
Assessment
Illustration of where the tools may fit
Priority list(e.g. WFD)
COMMPS
EURAM
Risk
Assessment
HazardClassification
& Labelling
MSDS
Labels
POPs
CMRs
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RISK Management
How to think about substitution ?
RISK Management
How to think about substitution ?
Several basic ways to do this: Reduce the Hazards Reduce the Exposure by the way a
product is designed (e.g., less of the samesubstance, managing availability, or
fate/biodegradability
or a combination of both
or innovate, substitute, .
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Ingredient x : Safety
success criteriaSafety programme:
Fate profile significantly better thansubstitute
Effect profile not significantly differentthan substitute
RQ in all compartments < 1
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R&D and Business Realities
. Performance/cost/. Performance Env Safety Relative cost
$$
$$$$
$$$
$$
$
Specs
Reference
Sub-1
Sub-2
Sub-3
Sub-4
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Need to account for
all legs of the stool
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Since it may not be
actionable
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RISK Management
How to think about substitution ?
RISK Management
How to think about substitution ?
Other example: mass efficiency
use a 10X better performing chemical twice as toxic as the one it replaces
risk profile would be 5X better
It also (probably) has a significant
lifecycle benefit, as much lessmaterials/energy will be used to make it,
per unit of performance
Maybe cheaper as well.
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THE HAZARDS OF
HAZARD-BASED substitution
Detaches Dose from Risk
Is Easily Misperceived by the Public asSynonymous with Risk based action
Does not encompass holistic human and
environmental risks Does not include entire life-cycle and
other potential impacts
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Life Cycle Analysis
of product/servi
ce
Life Cycle Analysis
of product/servi
ce
= Accounting of all energy and raw materialconsumption (inputs) and associated environmental
emissions (outputs) for the whole life cycle of aproduct or service
Supply M anufacturing U se D isposal
I
/
if
l
t
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LCA is a process that
(ISO)
LCA is a process that
(ISO)1/ Evaluates the environmental burdens associated
with a product, process, or activity by identifying
and quantifying energy and materials used andwastes released to the environment.
2/ Assesses the potential impact of the energy andmaterial flows on the environment,
3/ Identifies and evaluates opportunities forenvironmental improvements.
I
/
if
l
t
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What does LCA look at ?What does LCA look at ?
Resource use efficiency:
- Energy
- Water- Land
Impact categories:
- CO2 emission/Global warming
- Smog/Ozone formation
- Ozone depletion- Acidification
- Eutrophication (N/P)
- Human health
-Ecotoxicity
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Risk Assessment vs LCARisk Assessment vs LCA
Life cycle assessment
(LCA)
Env. Risk assessment
(ERA)
ClearanceEnvironment
LCAERA
LCA profile, report
Comparative
Voluntary
Absolute
Compulsory
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Evolutionwithintheregularpowdercategorysince1988 excludingtheusestage
0%
20%
40%
60%
80%
100%
120%
Reco dose
Packaging/wash
Energy
Solid waste
Acidification
Aquatic toxicity
Eutrophication
Climate change
Ozone depletion
Photochemical smog
Regular powder1988
Regular powder2001
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LCA vs Risk Assessment ?
RA and LCA are complementary tools, not
mutually exclusive Decision for environmental improvement
and sustainable development must be
based on the outcome of variety of tools There is not such thing as a simple
answer
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CONCLUSIONSBUSINESS REALITIES PLAY A ROLE IN SOUND
CHEMICAL AND PRODUCT MANAGEMENT
1. All Social Activities Carry EnvironmentalPressures and Efforts are Needed to Identify the
Extent and Severity of this potential Impact
2. Technological Innovation is Essential to Humanand Environmental Quality Improvement and
Business Success
3. Only Products/Services Offering CompetitivePerformance and Value Survive to DeliverEnvironmental Benefits