Environmental and social impacts Across supply chains - LCA conference 4 Nov 2013

© Factor-X 2013 CONFIDENTIAL

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Avenue de la Paix 3 BE 1420 Braine l’Alleud

TVA BE 0890 101 395Email : [email protected]

Tel : +32 2 387 17 87Fax : +32 2 888 63 34

Measuring real socio-environmental Impacts along Value-chains

November 4 2013

mailto:[email protected]

© Factor-X 2013 CONFIDENTIAL 2

The Problems

• Data overload– Companies are engaged in continuous improvement of environmental figures for

numerous years. Data accumulate, but data collection processes affects their quality and coherence.

– Yet, socio-environmental pressure, CSR, labeling and Ethics demands are still growing from stakeholders and public authorities.

• A business is not run alone– Particular emphasis over supply chain and purchasing footprint improvements : CDP, GRI

4, GHG protocol scope 3, UE PEF & OEF, …– But the supply chain of many corporations has become extremely scattered and is

unmanageable beyond level 1 suppliers.

• Innovation– Most of the marginal efficiency gains on the production side are behind us.– An Excel chart does not help thinking out of the box

• Consultants should deliver added value instead of chasing after data


Too many tools, each serving a small purpose

Most of these tool Locking customers on a long term relationship

Too many people managing social & environmental information

Very little information about product composition, traceability beyond level 1

Suppliers not very keen to provide raw information to

customer

Product footprints are expensive, time consuming and based on generic factors

Metrics to define product performance are not hamonized (yet)

Data quality issues , Uncertainties are big

Shared methodologies into a single Framework, Time saver, both corporate & products

Open source model & attractive pricing + access to consultants & auditors

Identify who does what easily & track answers statuses

Allow supplier to push request upward in supply chain at no cost

Build transparency along value chain for every actor (dependency)

Build Trust

Low Cost / accessible to any one, easy to use ; real factors

Open to any methodology, customer defines what he whats to track

Manage data quality & uncertainties with innovations


Traceability , Align business ans socio-environmental performance

+ improvements over time

Added impacts procedure


General idea : 1 data = different answersDO the Job once, report as many times as need with very little additional efforts

– MYRMEX is a repository from which you can answer to all internal or stakeholder queries. – Know immediately who is reporting on what ; focus on your core data

Company

Product A D & E

Product B&C Customer 2

Customer N

MYRMEX

Customer 1 Product A & B

Select/define MethodCollect activity data for Scope 2 processes

Confirm data already in system / mobilise staff for additional data collectionSee how many data you miss to complete methods

See progress Reports

Push the request to suppliers

Manage suppliers answers

Build temporary answers with hotspots

Supplier 1

Supplier x


Methods available / under development in MYRMEX

• Product traceability & Compliance– EU-TR – FSC / PEFC – Product components – Countries of origin – % Organic / fair trade – Reach : reversed process

• Product footprinting – Water ; carbon ; energy – 14 indicators from EU OEF & PEF– + action planning & verification

• CSR corporate & Site level – GRI 3.1 & GRI 4 – Carbon disclosure project – Global compact


• MYRMEX regular price framework = each user pays for its own usage• Monthly usage fee in €/month

• Automatic Verification & Coherence Check: included in the tool• Additional demands: Pay as you Go

– Eg. Manual Control fee = ½ day of work (on average)

# Products

# Sites

1 2-5 6 - 20 21- 50 50+1 to 2 0 10 25 50 803 to 12 10 20 35 60 9013 to 33 25 35 50 75 10533+ 45 55 70 95 125

Examples: - supplier A reports on 1 product from two sites: free - supplier B reports on 4 products from two sites: 10 €/month - supplier C reports on 40 products from 11 sites: 75 €/month - nobody pays more than 125 €/month

Software Pricing


User Centered Features – Basic rules

• Rule #1 : Your Data are NEVER disclosed– Distinction made between activity data (remaining your ownership and never disclosed)

and results : being transmissible

• Rule #2 : Everything starts with a query – Myrmex = Trusted third party relay queries made by stakholders to your organisations – You decide if and how you want to respond to each query

• Rule #3 : Your performance is not disclosed unless you say so – There are several steps to proceed through to send a result out of your company – Many validation layers, few people having the authority to disclose information

• Rule #4: If you don’t save time on the long run, quit ! – MYRMEX intends to help companies solve their socio-environmental issues by

mutualizing these into a one-stop-shop. If you see no time savings after a year r so, give us feedback and quit.


User Centered Features – Step by Step approach

• Step #1 : Define organisation & set up scopes

• Step #2 : Review queries

• Step #3 : Define sold products

• Step #4 : Define suppliers & supplies

• Step #5 : Fill key information

• Step #6 : Validate answers and send results

• Step #7 : Reduce uncertainty by improving data quality , completeness

• Step #8 : Reduce uncertainty by validating data

3 levels of complexity

1. Quick & dirty ( 10’)2. Hotspots improvement 3. Detailed information


Ongoing developments – Manage allocation

10

• Different methods repecting international standards, such as ISO1404x • And user easiness to use

P1 (reporting)

Other Products(non listed)

Input 1 produit 1 I1_P1

I2_P1

Ix_Py non décrits

Energy E

E_P1 E_OP

ELEC el

el_P1 el_OP

Processes Pr

Pr_P1 Pr_OP

Water Wa

Wa_P1 Wa_OP

Packaging IxPa_P1

TOTAL consumption

Product split (optional)

Wh

Waste P1 = Ix_P1 + IxPa_P1+Ci_P1 Waste other = WasteTOTAL – W_P1

Waste Co-products

Waste Categories

Per category

Level 2

Level 1

Overhead

O_P1 O_OP

Transport

T_P1 T_OP


Ongoing developments – Manage Uncertainties

• Rule #1: Result = DATA x (1 + Uncertainty factor)

• Rule #2 : The mode detailed information you give, the less uncertainties you get

• Rule #3 : As long as you progress towards the resource, %uncertainties are reduced.

• Factors reducing uncertainties – Theoretical Data (Hotspots) – 3 data quality level for each supplier– 3 allocation processes for each supplier – Internal data verification by manager – Data validation by external consultants – Data Audited third party – Conform to Sector guidance documents (materiality,

impacts, etc)

• By adding further information DATA value can sometimes increase, but we expect in 85% that overall impact is reduced.

%uncertainty

%Raw material & resource

Finished goods


A model built on partnerships & collective governance

Step 1 : Incubating Step 2 : Growing Step 3 : Spinoffing Step 4 : Living

Myrmex Project

Ideas

Factor-X

Factor-X autofinances first steps of development (easier than startup)

The projects is developed internally (resources mutualisation)

Partnerships proposal (risk & revenue sharing)

Factor-X

Myrmex PRODUCT

Customers

Users

Stak

ehol

ders

As the project grows in importance customers, users and stakeholders are included into the loop in order to define developments & management rules

The community of developers is also built

MYRMEXFAX

Own Team &

Mgt

Collegial administration

Open Capital (SCRL)

STKcommite

es

Once trust is established, and since the project reached a viable size, the project can live alone

Creation of a dedicated company with all interested people

Ideastransformed into New projects

The new structure is created with no debt, small capital amounts, is immediately viable and reassigns a percentage of its turnover to FAX (typically 10%)

%sales

2012 2013-2016 2016-17 2017+


à partir de 300

new users

À p. de 1500 new users

A p. de 3000

new users

From 2017

Users Partners Investors

Retour lors de l’assemblée

générale des utilisateurs

Questionnaire annuel de

satisfaction&

Propositions de recommandations

Contribuer Faire des

suggestions Rendre du feedback

Skype meetings Identification problèmes

Amélioration souhaitée

Calendrier des releases

Réunions trimestrielles

Grandes orientations stratégiques

Co-gestion

Conférence de développement

Comité scientifique

Comité d’audit

IT developers

Conseil Orientations générales

Avis d’experts

Expertise Audit IT

Audit Méthodes


End Customers

– Eu-Timber Regulation : Wood products traceability

– CSR at company level – Product labels verification

– Product carbon footprint – Suppliers mobilisation – Improvements verification – Toward low carbon consumption

– Internal data collection and management – Site per site Scope 3 carbon footprint– Progressive inclusion of key suppliers

– Online Company carbon footprint calculator – Online individual voluntary carbon caluclator – Improvement declaration & verification – Tips & tricks to reduce in function of results


Conclusion

What we are looking forEarly adopters with supply chain issues, from main industrial domains:• Agrifood• Automobile / transport• Construction• Electronics• Furniture

What do you gain by being one?

Mobilization of your supply chain - Better understanding of the Socio-environmental impact along your value chain

Clear Positioning in improving sustainability practices in purchasing Return on investment

• Chemical• Manufacturing• Medical & Health• Textile• Tourism

Business Partners in the consulting and Audit industry :• Develop methodologies • Test the tool • Integrate your customers supply chains • Give feedback & participate to governance • Get additional turnover

Tool developers • Driven by open source models

Scientific comittee members Applications welcome [email protected]


Thank you for your attention

FACTOR-X Frédéric Chomé

[email protected]+32 474 701 832

http://www.factorx.eu

http://www.myrmex.coop/

Webinar sessions (planned once a week)

http://wwW.factorx.eu/

http://www.myrmex.coop/

Environmental and social impacts Across supply chains - LCA conference 4 Nov 2013

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Transcript of Environmental and social impacts Across supply chains - LCA conference 4 Nov 2013