ENVIRONMENTAL MANAGEMENT TOOLS

& TECHNIQUES FOR IMPROVING

BUSINESS SUSTAINABLE

PERFORMANCE

S.S.Chen

Energy & Environment Flagship, SIRIM

MPMA Sustainability Conference 2013, Petaling Jaya,

September 2013

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CONTENT

Environmental Management in

the Value Chain

The Next Wave - Environmental

Management to Sustainable

Management

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Disposal

3R

Consumption

Sale

DfE

Ecodesign

ISO 14001

Environmental

Reporting/ Accounting

Eco-labels

Life Cycle Assessment (LCA)

Green Procurement

Green Consumerism

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Raw

Material

Extraction

Design

Production

TC207

ISO 14000 series on

Environmental Management

TC207/SC5

TC207/SC7

TC207/SC4 TC207/SC1

TC207/SC2

TC207/SC3

Environmental

management

systems

Environmental auditing

&related environmental

investigations

Environmental labelling

Environmental

performance

evaluation

Life cycle assessment

Greenhouse gas

management

&related

activities

TC 207 Standardization in the field of environmental management

systems and tools in support of sustainable development.

Source: ISO TC/207

ORGANIZATIONAL FOCUS (cost)

Environmental

Communications

Environmental Management System (ISO 14001/4)

Environmental Performance Evaluation

(ISO 14030s)

Life Cycle Assessment (ISO 14040s)

Environmental Auditing

(ISO 14010s)

Design for Environment

(IS014062)

Labeling & Marketing (ISO14020s)

PRODUCT FOCUS (revenue)

Then….

1995-2000

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Environmental Management System (ISO 14001/6)

Environmental Performance Evaluation (ISO 14030s)

Life Cycle Assessment (ISO 14040s)

Environmental Auditing

(ISO 14010s)

Design for Environment

(IS014062)

Labeling & Marketing (ISO14020s)

2012…..

ISO 14046 Water Footprint

ISO 14071 Critical Review

ISO 14072 Organisation

ISO 14045 Eco-Efficiency

ISO 14067 Carbon

Footprint

ISO 14051 Material Flow

Cost Accounting

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Spin-offs

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x

Product

idea

x

Pilot

batch

x

Product

launch

Design

Production

1st series

Product life time

Product end-of-life

Eco-design Cleaner

production

Ecolabelling as

market

instrument

Waste

management

approx.

80%

En

vir

on

men

tal

imp

act

Design Phase – Determine Environmental

Impact of Products

Product value chain -

Design activity of

product has minimal

impact during design

phase (only desktop

activity)

Environmental Impact

- Design of product

contributes to about

80% of the impact over

product’s life cycle

Design for environment (DfE)

Environmentally conscious design

Life cycle design

Eco product development

It is a pragmatic approach

to identify environmental

“hot spots” and to

organizing the product

development to prevent

environmental problems

from occurring.

Ecodesign considerations that include:

weight reduction of products

use of recycled materials and parts

product life extension

energy efficient

ease of reuse

ease of recycling: ease of separating and sorting, shredding

ease of classifying for recycling

Safety Product Design

Aesthetics Functionality

Quality

The Environment

Ergonomics

Costs

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Climate

Change

Resource

Depletion

Loss of

Biodiversity

Environmental

Issues

•Greenhouse gas

•Water

•Rare elements

•Fossil fuel

•Toxic chemical

emissions

Current

Agenda for EE

Industries

Ecodesign

Energy & GHG

Material

Efficiency

Hazardous

Chemicals

Management

E.g. TC111 Standards

IEC/TR 62824: Material

efficiency in environmentally

conscious design

IEC 62321-8 Ed.1 Determination

of certain substances in

electrotechnical products-Parts

1-8

IEC 62430 Environmentally

conscious design for electrical

and electronic products

IEC/TR 65635 Guidelines for

end-of-life information provided

by manufacturers and recyclers

and for recyclability rate

calculation

IEC/TR 62726 Quantification

Methodology of greenhouse gas

emission (CO2efrom the project

baseline

IEC 62474 Material declaration

for products of and for the

electrotechnical industry

Source: Andrea Legnani, Secretary TC111

• ISO 14062 Environmental Management – Integrating environmental aspects into product design and development

• ISO 14006:2011 –Environmental management systems – Guidelines for Incorporating Ecodesign

• IEC 62430 – Environmentally conscious design (Electrical and Electronic Equipment)

• EU Directive 2009/125/EC on- Establishing a framework for the setting of ecodesign requirements for energy using products (EuP)

• EU Directive 2005/32/EC with regard to Ecodesign Requirements for Standby and Off Mode Electric Power Consumption of Electrical and Electronic Household and Office Equipment

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Characteristics Impacts Addressed Obvious Solution

Plant extracts e.g. Vegetable Oils Agro-residues/ Agro-wastes Microbial products

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• Mark plastics according to ISO

2 2 2

1 0 2

2 2 2

PC

PC + ABS

PC + PBT

PB

T

PA

AB

S

2: Separable

1: Partially

separable

0: Inseparable

Additive PC

PP 0

PA 0

POM 0

ABS

PBT

*Extracted from: Electrical and Electronic Practical Ecodesign Guide, J. Rodrigo & F.Castells,

University Rovira I Virgili

0 : incompatible

: compatible

• Consider plastics compatibility

and separability *

ISO 14051:2011 Environmental management -- Material flow cost

accounting -- General framework

Under MFCA, the flows and stocks of materials within an organization are

traced and quantified in physical units (e.g. mass, volume) and the costs

associated with those material flows are also evaluated. The resulting

information can be used to generate financial benefits and reduce adverse

environmental impacts.

Source: Guide to MFA, METI, Japan 2007

Representation of MFA System

Type I

Type II Type III

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Global Eco-labelling Network (GEN)

MALAYSIA

EXAMPLES OF ECO-LABELS

Source: http://www.globalecolabelling.net/members.html

Name of Programme Operator Remark

Singapore Green

Label

Singapore Environmental

Council

NGO

Thai Green Label Thailand Environmental

Institute

NGO

Green Choice Clean and Green Foundation

Inc.

Company

Rumah Lingkungan Ministry of Environment Public

organisation

China Environmental

Labelling

China Environmental United

Certification Center

Company

SIRIM Eco-label SIRIM QAS International Sdn.

Bhd. Company

EXAMPLES OF ECO-LABELS

Source: http://www.globalecolabelling.net/members.html

Name of Programme Operator Remark

The Australian

Ecolabel Program

Good Environmental Choice

Australia Ltd

Company

Ecomark Program Japan Environment

Association (JEA)

NGO

Green Seal Green Seal Inc. Company

Korea Eco-label Korea Environmental Industry

and Trade Institute (KEITI)

Public

organisation

Blue Angel Federal Environment Agency Public

organisation

EU Flower Dept for Environment, Food and

Rural Affairs (DEFRA) The UK

Ecolabelling Competent Body

Public

organisation

TYPE I – Third Party

Certification

CERTIFICATION SYSTEM

ISO/IEC GUIDE 65

TYPE 5 – Includes assessment

of quality system, quality

control plan, sampling &

testing, product re-evaluation,

issuance of license and market

surveillance

OBJECTIVE

i. To enable the industries to

make credible claims on the

environmental attributes of

their products.

ii. To provide independent

verification on the accuracy

of ‘Environmental Claims on

products’.

iii. To educate and create

awareness among the

consumers, businesses and

manufacturers on

environmentally-friendly

products and services.

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SIR

IM

EC

O-L

AB

EL

LIN

G

SC

HE

ME

CRITERIA

DOCUMENT FOR

BIODEGRADABLE

CLEANING

AGENTS

Copyright 2004, SIRIM Berhad

REFERENCE NO:

002/04

ISSUE DATE:

AUGUST 2004

38 (+3) documents in the following categories:

Cleaning

Construction/Building

Home Appliance

Home Care Products

Lights

Office Supplies (not paper specific)

Package Container (not paper specific)

Paper Products/Inks

Personal Care Products

Food, Plants

Adhesives

Others A Premier Total Solution Provider in Quality and Technology Innovation

58 licenses covering at least 15 product categories and >200 types of products

certified according to the following product criteria:

a) Biodegradable cleaning agents

b) Fabric care products

c) Paints

d) Cement

e) Fibre cement

f) Ceramic tiles

g) Clay roofing tiles

h) Flat steel products

i) Masonry units

j) Plastic packaging

k) Biofibre construction material

l) Recycled plastic products

m) Recycled rubber products

n) Recycle paper products

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EU-Switch Asia Promotion of Sustainable Consumption and Production

Specific Objective

To drive continued improvements in sustainable production,

manufacture and use of materials for the construction and

building sector within Malaysia and its export markets.

One of the activities:

Develop an environmental declaration scheme that is aligned with

international standards (initial focus will be carbon footprint labelling)

Carbon Footprint Labels

UK

Carbon Trust

Japan Carbon

Footprint

Korea - Cool Label (CO2 low label)

Environment Footprint Labels

French

Environmental

Labelling

Scheme BP

X30-323

A EU Single Market for Green Products Initiative

To launch 1st pilot in November 2013

Qualit

y Deliver

y

Cost

Durability Reliability Timeliness Competitive

+ Environment

Less resource-intensive

More environmentally-sensitive

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GREEN PUBLIC PROCUREMENT

IN ASIA

CHINA - Government Procurement Act Enacted July 2006, enforced January 2007

May preferentially purchase ecolabelled products

JAPAN - Law on Promoting Green Purchasing Enacted May 2000, enforced May 2001

KOREA - Green Purchasing Law Enacted December 2004, enforced July 2005

THAILAND - Government Management Plan Promulgated in March 2005

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GREEN PUBLIC PROCUREMENT IN

CHINA

8th version of Public Procurement

List of Environmental Labelling

Products: 21 categories of products,

such as light, vehicle, photocopier,

computer, water-based paint,

furniture, etc

Public Procurement List of Energy

Saving Products: 27 categories of

energy saving products, such as air

conditioner, refrigerator, lighting

product, television set, electric water

heater, computer, printer, monitor,

etc.

and 7 categories of water saving

products, such as toilet, faucet,

shower etc.

10,239

products

within 33

categories

under Energy

Saving Label

2,823

products

within 14

categories

under Type

I Label.

GGP amounted to 3.5 billion US in 2007

GREEN PUBLIC PROCUREMENT

IN JAPAN

The Green Purchasing Law (The Law Concerning the Promotion of Eco-Friendly Goods and Services by the State and Other Entities) – May 2001

All state institutions obligated to purchase designated procurement items (200 products in 18 categories).

All central government ministries, 47 prefectural governments, 12 designated cities and 68% of 700 cities practicing green purchasing.

For designated items 95% green products

Labels referenced by government purchasers:

Eco-Mark 94.4%

Energy Star 37.3%

GPN Data base and Others 28.4%

GREEN PROCUREMENT POLICY OF

THAILAND

Established Environmental Management Quality Plan (2008-

2011)

Government agencies should be leaders in green procurement in order to create proper market of products and services that are environmental friendly. National Green Procurement Plan - Green purchasing levels in

targeted product and service areas were set. Example:

25% in 2008

30% in 2009

40% in 2010

60% in 2011

70% in 2012

Source: Pornsri Suthanarak, Green Purchasing Seminar, Nov. 2011

Disposal

3R

Raw Material

Extraction

Design

Production Consumption

Sale

DfE

Ecodesign

ISO 14001

Environmental

Reporting/ Accounting

Eco-labels

Life Cycle Assessment (LCA)

Green Procurement

Green Consumerism

Catalyst

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Avoids problem shifting from:

one life cycle stage to

another

from one geographic area to

another

from one environmental

medium to another

from one protection target to

another

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Life Cycle Inventory (LCI) Results

Clim

ate

Ch

ange

Ozo

ne

Dep

leti

on

Smo

g (V

OC

s &

in

org

anic

po

lluta

nts

)

Car

cin

oge

ns

Eco

toxi

city

Aci

dif

icat

ion

Eutr

oh

ph

icat

ion

Human Health (expressed as

Disability Adjusted Life Years (DALY)

Lan

d u

se

Ecosystem Quality (expressed as

Potentially Disappeared Fraction(PDF) /m2/yr)

Dep

leti

on

of

foss

il fu

el

Dep

leti

on

of

min

eral

s

Resources (expressed as

MJ Surplus Energy)

LCA uses physical science to predict impact and damages, and social science for subsequent decision-making

Environmental, social and economic systems and the

relationships between them are essential for

sustainability

Conservation of the environment system is considered

essential for the maintenance of social and economic

systems

ISO DGuide 82 – Guide for addressing sustainability in

standards

ISO Guide 64 – Guide for addressing environmental

issues in product standards

ISO 26000 – Guidance on social responsibility

Development of Eco-Efficiency Assssment

Goal and scope definition

Environmental assessment

Product system value assessment

Calculation of eco-efficiency results

Interpretation

Eco-efficiency assessment

Applications:

- Product development and improvement

- Strategic planning - Budgeting - Investment

analysis - Public policy making - Marketing - Green purchasing - Awareness raising - Others

Soci

al

Eco

nom

y

Environm

ent

Pillar Indicators

Environment Carbon Footprint (CFP)

Economy Main Indicator:

Total Value Addition (TVA) (Gross revenue – cost of intermediates)

Sub Indicators:

• Labour Wages

• Net Profit

• Tax Revenue

• Foreign Exchange

Social Job Creation

Energy Security

Feedstock Accountability

E.g. of Quantification of Practical Sustainability Indicators

Soci

al

Eco

nom

y

Environm

ent Pillar Indicators

Environment Carbon Footprint (CFP)

Economy Main Indicator:

Total Value Addition (TVA) (Gross revenue – cost of intermediates)

Sub Indicators:

• Labour Wages

• Net Profit

• Tax Revenue

• Foreign Exchange

Social Job Creation

Energy Security

Feedstock Accountability

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