Comparison of “CO 2 Efficiency” between Company and Industry

InLCA/LCM 2003 　 Seattle, Washington Sep.25,2003

Comparison of “COComparison of “CO22 Efficiency” between Efficiency” between

Company and IndustryCompany and Industry

Kiyotaka TAHARAKiyotaka TAHARA Masayuki SAGISAKAMasayuki SAGISAKAKazuo YAMAGUCHIKazuo YAMAGUCHI

Atsushi INABAAtsushi INABA

AIST


IntroductionIntroduction

An important tool to achieve sustainable development

Eco-EfficiencyEconomicEcological (Environment)

Eco-Efficiency = Product or Service valueEnvironmental influence

Quantity of goods or servicesproduced or provided to customersNet sales

Energy consumptionMaterials consumptionWater consumptionGreenhouse gas emissions (CO2…)Ozone depletion substance emissions……

WBSCD, 1992


Source :　 TOYOTA Environmental Report 2002


Source:　 Sony Environmental Report 2002


Eco-Efficiency = Product or Service valueEnvironmental influence

CO2 Efficiency = Economic indexCO2 emission

This study

I-O table dataLCI dataEnvironmental report of company

Price Gross value-addedGross incomeCost

Investor relation information


Industry A

Industry D

Industry C

Industry B

Product

Direct CO2 emissionIndirect CO2 emission

Producer’s PriceProducer’s PriceCostCost

Gross value-added Gross value-added

Fig.1-1 Concept of CO2 efficiency

Total CO2 efficiency = Producer’s PriceTotal CO2 emissions

Direct CO2 efficiency = Gross value-addedDirect CO2 emissions

Indirect CO2 efficiency = CostIndirect CO2 emissions


CO2 emission

Producer’s Price

Cost

Price

Gross value-added


Average CO2 efficiency of upstream Industry

CO2 efficiency of Industry A

Total

Direct

Indirect

Producer’s PriceTotal CO2 emissions

Gross value-addedDirect CO2 emissions

CostIndirect CO2 emissions

Fig.1-2 Concept of CO2 efficiency


0

500

1,000

1,500

2,000

2,500

3,000

3,500

CO

2 E

ffici

ency

[yen

/kg-

CO

2] Total CO2 Efficiency(Producer Price/Direct and Indirect CO2 emission)

Fig.2 The Total CO2 Efficiency (Producer Price / Direct and Indirect CO2 emission) for each Industrial Sector

Act

iviti

es n

ot e

lsew

here

cla

ssifi

edO

ffice

sup

plie

sP

erso

nal s

ervi

ceB

usin

ess

serv

ice

Oth

er p

ublic

ser

vice

Med

ical

ser

vice

, hea

lth a

nd s

ocia

l sec

urity

Edu

catio

n an

d re

sear

chP

ublic

adm

inis

tratio

nC

omm

unic

atio

n an

d br

oadc

astin

gTr

ansp

ort

Rea

l est

ate

Fina

nce

and

insu

ranc

eTr

ade

Wat

er s

uppl

y an

d w

aste

dis

posa

l ser

vice

sE

lect

ric p

ower

, gas

sup

ply

and

stea

m a

nd h

ot w

ater

sup

ply

Con

stru

ctio

nM

isce

llane

ous

man

ufac

turin

g pr

oduc

tsP

reci

sion

mac

hine

ryTr

ansp

ort e

quip

men

tE

lect

rical

dev

ices

Gen

eral

mac

hine

ryM

etal

pro

duct

sN

on-fe

rrou

s m

etal

Iron

and

stee

lC

eram

ic, s

tone

and

cla

y pr

oduc

tsP

etro

leum

refin

ery

and

coal

Che

mic

al p

rodu

cts

Pul

p, p

aper

and

woo

den

prod

ucts

Text

iles

Food

Min

ing

Agr

icul

ture

, for

estry

and

fish

erie

s

servicemanufacturing

CO2 emission

Producer’s Price

Cost

Price

Gross value-added





0

5,000

10,000

15,000

20,000

25,000

CO

2 E

ffici

ency

[yen

/kg-

CO

2]

Direct CO2 Efficiency(Gross value-added/Direct CO2 emission)

Act

iviti

es n

ot e

lsew

here

cla

ssifi

edO

ffice

sup

plie

sP

erso

nal s

ervi

ceB

usin

ess

serv

ice

Oth

er p

ublic

ser

vice

Med

ical

ser

vice

, hea

lth a

nd s

ocia

l sec

urity

Edu

catio

n an

d re

sear

chP

ublic

adm

inis

tratio

nC

omm

unic

atio

n an

d br

oadc

astin

gTr

ansp

ort

Rea

l est

ate

Fina

nce

and

insu

ranc

eTr

ade

Wat

er s

uppl

y an

d w

aste

dis

posa

l ser

vice

sE

lect

ric p

ower

, gas

sup

ply

and

stea

m a

nd h

ot w

ater

sup

ply

Con

stru

ctio

nM

isce

llane

ous

man

ufac

turin

g pr

oduc

tsP

reci

sion

mac

hine

ryTr

ansp

ort e

quip

men

tE

lect

rical

dev

ices

Gen

eral

mac

hine

ryM

etal

pro

duct

sN

on-fe

rrou

s m

etal

Iron

and

stee

lC

eram

ic, s

tone

and

cla

y pr

oduc

tsP

etro

leum

refin

ery

and

coal

Che

mic

al p

rodu

cts

Pul

p, p

aper

and

woo

den

prod

ucts

Text

iles

Food

Min

ing

Agr

icul

ture

, for

estry

and

fish

erie

s

Fig.3 The direct CO2 Efficiency (Gross value-added / Direct CO2 emission) for each Industrial Sector

servicemanufacturing

CO2 emission

Producer’s Price

Cost

Price

Gross value-added





0

100

200

300

400

500

600

700

CO

2 E

ffici

ency

[yen

/kg-

CO

2]

Indirect CO2 Efficiency(Cost/Indirect CO2 emission)

Fig.4 The indirect CO2 Efficiency (Cost / Indirect CO2 emission) for each Industrial Sector

Act

iviti

es n

ot e

lsew

here

cla

ssifi

edO

ffice

sup

plie

sP

erso

nal s

ervi

ceB

usin

ess

serv

ice

Oth

er p

ublic

ser

vice

Med

ical

ser

vice

, hea

lth a

nd s

ocia

l sec

urity

Edu

catio

n an

d re

sear

chP

ublic

adm

inis

tratio

nC

omm

unic

atio

n an

d br

oadc

astin

gTr

ansp

ort

Rea

l est

ate

Fina

nce

and

insu

ranc

eTr

ade

Wat

er s

uppl

y an

d w

aste

dis

posa

l ser

vice

sE

lect

ric p

ower

, gas

sup

ply

and

stea

m a

nd h

ot w

ater

sup

ply

Con

stru

ctio

nM

isce

llane

ous

man

ufac

turin

g pr

oduc

tsP

reci

sion

mac

hine

ryTr

ansp

ort e

quip

men

tE

lect

rical

dev

ices

Gen

eral

mac

hine

ryM

etal

pro

duct

sN

on-fe

rrou

s m

etal

Iron

and

stee

lC

eram

ic, s

tone

and

cla

y pr

oduc

tsP

etro

leum

refin

ery

and

coal

Che

mic

al p

rodu

cts

Pul

p, p

aper

and

woo

den

prod

ucts

Text

iles

Food

Min

ing

Agr

icul

ture

, for

estry

and

fish

erie

s

CO2 emission

Producer’s Price

Cost

Price

Gross value-added





Food

Direct CO2 Efficiency [yen/kg-CO2]

Indi

rect

CO

2 E

ffici

ency

[yen

/kg-

CO

2]

1

10

100

1,000

10,000

100,000

1 10 100 1,000 10,000 100,000

Finance and insurance

Real estate

Communication and broadcasting

Trade

Electrical devicesGeneral machinery

Mining

Iron and steel

Fig.5 CO2 efficiency pattern for each Industrial Sector

Agriculture, forestry and fisheries

Non-ferrous metals

Pulp,paper and wooden products

Water supply and waste disposal services

TransportChemical products

Other public service

PetroleumRefinery and coal

Electric power, gas supply and steam and hot water supply

Ceramic, stone and clay products

ConstructionMetal products

Direct

CO2emission

Producer ’sPrice

Cost

Price

Gross value - added

Pattern A

Indirect CO2emission

Price

Cost

Price

Gross value - added

Total CO2 efficiency

Direct CO2 efficiency

Indirect CO2 efficiency

Pattern B

Pattern C

Direct IndirectCO2emission

Producer ’sPrice

Cost

Price

Gross value - added

CO2emission

’Price

Price

Gross value - added




Direct Indirect

CO2emission

Producer ’sPrice

Cost

Price

Gross value - added



Indirect CO2 efficiencyCO2emission

’Price

Price

Gross value - added





0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000S

laug

hter

ing

and

mea

t pro

cess

ing

Pro

cess

ed m

eat p

rodu

cts

Bot

tled

or c

anne

d m

eat p

rodu

cts

Ani

mal

oil

and

fats

Dai

ry fa

rm p

rodu

cts

Froz

en fi

sh a

nd s

hellf

ish

Sal

ted,

drie

d or

sm

oked

sea

food

Bot

tled

or c

anne

d se

afoo

dFi

sh p

aste

Fish

oil

and

mea

lO

ther

pro

cess

ed s

eafo

ods

Gra

in m

illin

gFl

our a

nd o

ther

gra

in m

illed

pro

duct

sN

oodl

esB

read

Con

fect

ione

ryC

anne

d or

bot

tled

vege

tabl

es a

nd fr

uits

Pre

serv

ed a

gric

ultu

ral f

oods

tuffs

Sug

arS

tarc

hD

extro

se, s

yrup

and

isom

eriz

es s

ugar

Veg

etab

le o

ils a

nd m

eal

Con

dim

ents

and

sea

soni

ngs

Pre

pare

d fro

zen

food

sR

etor

t foo

dsD

ishe

s, s

ushi

, lun

ch b

oxes

Sch

ool l

unch

(pub

lic)

Sch

ool l

unch

(priv

ate)

Oth

er fo

ods

Ref

ined

sak

eB

eer

Eth

yl a

lcoh

ol fo

r liq

uor m

anuf

actu

ring

Whi

skey

and

bra

ndy

Oth

er li

quor

sTe

a an

d ro

aste

d co

ffee

Sof

t drin

ksM

anuf

actu

red

ice

Feed

sO

rgan

ic fe

rtiliz

ers,

n.e

.cTo

bacc

oFo

od

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

Fig.6 The direct CO2 Efficiency of Food Industrial Sector

9,100 32,500


0

50

100

150

200

250

300

350

400

Petroleumrefinery products

(inc. greases)

Coal products Paving materials Petroleumrefinery and coal

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

Fig.7 The direct CO2 Efficiency of Petroleum refinery and coal Industrial Sector


Fig. 8 Concept of Direct CO2 efficiency for companies

Factory Office, Institute, etc.

CO2 CO2X

Company X

Factory Office, Institute, etc.

CO2 CO2

Beer Company C

Gross IncomeMost of Direct CO2 emissions

Direct CO2 efficiency =

4%

oil\

Cost Net sale

Net sale – Cost = Gross Income

\

Company X

.


0100200300400500600

Beer Industry sector (I-O based data)

0%

20%40%

60%80%

100%

Beer

DrinkReal estate

LiquorMedicines

Percentage of production in the total net sale

CompanyA

CompanyC

CompanyB

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

Fig.9 Direct CO2 Efficiency in the beer industry sector: 3 Companies’ data from environmental reports against I-O based data

CompanyA

CompanyC

CompanyB

Beer


0

10

20

30

40

CompanyA

CompanyC

CompanyB

Petroleum refinery products Industry(I-O based data)

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

Fig.10 Direct CO2 Efficiency in the petroleum industry sector:3 Companies’ data from environment reports against I-O based data


CompanyA

CompanyC

CompanyB

Petrochemistry construction work

Other

0%

20%

40%

60%

80%

100%

Petroleum

Petroleum


0

100

200

300

400 Tires and inner tubes Industry(I-O based data)

CompanyA

CompanyC

CompanyB

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

0

100

200

300

400 Tires and inner tubes Industry(I-O based data)

CompanyA

CompanyC

CompanyB

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

0%

20%

40%

60%

80%

100%

CompanyA

CompanyC

CompanyB

Tires

Others


0%

20%

40%

60%

80%

100%

CompanyA

CompanyC

CompanyB

Tires

Others


Fig.11 Direct CO2 Efficiency in the tire industry sector:3 Companies’ data from environment reports against I-O based data

Tire


0%

20%

40%

60%

80%

100%OtherReal estateNew materialsBuilding materialLime, AggregateCement

CompanyA

CompanyB

Percentage of production in the total net saleD

irect

CO

2 ef

ficie

ncy

[yen

/kg-

CO

2]

0

5

10

15

CompanyA

CompanyB

Cement Industry(I-O based data)

Fig.12 Direct CO2 Efficiency in the cement industry sector:2 Companies’ data from environment reports against I-O based data

Cement


CO2 emission

A IndustryB Industry

F Industry

E Industry

C Industry

D Industry

G Industry

Gross income/Gross value-added

Company A ＝ A+B+C+D+E+F+G Industry

More efficient

Less efficient

Standard of Company A

Fig.13 Concept of company evaluation


ConclusionConclusion• CO2 efficiency index was developed from I-O table data for the

evaluation of industry sectors.

• The CO2 efficiency varies by industry sector.

• The conparison of companys’ CO2 efficiency against I-O based industry sector CO2 efficiency is possible.

• A clear difinition of system boundary will be necessary for better resolution of company’s CO2 efficiency.

• Further examination and comparison of company’s “eco-efficiency” and its detailed investigation in relation to economic value index should be explored.

Comparison of “CO 2 Efficiency” between Company and Industry

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