Environmentally Superior Products and Services –An Environmental & Business Opportunity

8 - 9 March 2006, RDS, Dublin, Ireland

Dr. Dorothy Maxwell Senior Environment SpecialistEnviroCentreEnterprise Ireland

EnviroBusiness 06

Summary

Introduce Enterprise Ireland & environmental activitiesEnvironmentally Superior Products initiative (2000 – to date)

Environmentally Superior Products & ServicesEnvironmental / Sustainability CaseBusiness Case

How to design Environmentally Superior Products & Services?Checklist : EnvironmentIndustry examples (Irish & international)WIN WINs

Enterprise Ireland

Government Agency (DETE)

Assist the development of Irish businessProvision of range of services

business, technology, marketing, R&D, innovation etc…EnvironmentClients

indigenous Irish companies - Ireland and worldwide> 10 employees

13 offices - Ireland

33 offices - worldwideEurope, USA, Asia Pacific

AimsSupport Irish industry to improve their environmental performanceSupport growing Irish environmental market

Provide range of environmental supportsFree information, advice, support guides & tools, networking

all environmental issuesFinancial supportsEvents & regional environmental business fora

30 environmental scientists /engineers & 3 business specialistswww.EnviroCentre.ie

One stop environment shop for industry, free

Environment

Environmentally Superior Products (ESP)

Support projects in Irish industry to develop environmentally superior products & services

Information, Advice, Networking, MentoringWeb – www.enterprise-ireland.com/esp

guides, case examples, databasesIn personEvents – www.envirocentre.ie

Funds of 50 % of project costs up to maximum of €32,000 per approved company

Irish manufacturing industry SMEs

Range of Environmentally Superior Products & Services

Electronics & ICT FurniturePackagingTimberBuildings/ ConstructionWasteChemical

Case study brochure

Significant environmental impacts associated with production & consumption of products

ENVIRONMENTmajor causal factor for environmental degradatione.g. GHG/Climate Change, waste, resource depletion (materials & energy), non-renewables, pollution

Associated with entire “product life cycle”

Why? Environment Case

Environmental Impacts associated with entirePRODUCT “LIFE CYCLE”

Extent of Environmental Impact: type & volume

Wide range of products100 million products on sale worldwide in 2000 (developed world)

Large volumeshigh consumer demand

One quarter of the global population (1.7 billion people) are part of the “global consumer class”

Using products e.g. TVs, telephones and the internet.

high population levels worldwiderapid technological developmentquickly changing consumer preferences

Examples: Electronics, Packaging, Transport (cars, airplanes..), Buildings, Food

Cars

Global car fleet > 530 million (2004)Growing by 11 million / annum

Ireland 1990 – 200470 % increase in number of cars

Environmental Impact e.g.Resource depletion (fuel consumption) Air emissions

CO2 - GHG/Climate changeLand useWaste

Increasing volume of End of Life Vehicles

Electronics

Energy Useresidential electrical appliances second largest consumer of electricity (OECD)third largest emitter of GHG (OECD)

Waste Electrical & Electronic Equipment (WEEE)Fastest growing waste streams

Increasing 3 x average municipal waste (EU)Approx. 50,000 tonnes/annum (Ireland)

Hazardous Substances/ Pollutione.g. Lead, Mercury, Cadmium….

Resource UseMetals, plastics (fossil fuels)…

Social Impacts

Products typically manufactured in supply chainsCan be global

Range of social & ethical issues:-Health & safety, exploitation, child labour……

Increasingly prominentGlobalisationIncreased sub-contract market in developing world

e.g. Nike, GapEmployee exploitationAsian sub contract supply chains

Why ? - Business

Increasing industry drivers to reduce environmental & social impacts of products &/ services

Environmental Policy & Legislation Market Financial

Copyright New Yorker 2001

Product manufacturersShift in focus towards reducing environmental impacts of products over the entire PRODUCT LIFE CYCLE

Sectoral focus: Targeting packaging, vehicles, electronics, buildings/construction, batteries….Europe, Japan, Asia, Australia, USA

Drivers: Environmental Policy & Law

RawMaterials

ProductionProcess

Packaging,Distribution

Use End of Life

Environmental Impacts

Reducing environmental impacts of products at sourceDesigning products with reduced environmental impact throughout life cycleClosed loop, cradle to cradle Eco design

Incorporating environmental criteria into design of products and services

Key Trends

RawMaterials

ProductionPackaging,Distribution

Consumption

End of Life(Reuse/

Recycling / Energy Recovery /

Treatment)

Key Trends

Extended Producer Responsibility (EPR)Producer responsibility (+ financial) extended beyond environmental impacts at production site to other lifecycle stages (end of life)Motivate producers to design out environmental problems at source

EPR Legislation examplesPackaging Vehicles (ELV)Electronics (WEEE, RoHS)Ecodesign of “Energy using Products”Energy Performance in BuildingsBatteriesC&D wasteFarm plastics…………

Extended Producer Responsibility

Market Drivers – Customer Demand

Market leadersEstablished eco design activities e.g.

Automotive & ElectronicsTextilePackagingHealthcare

Market Drivers

Supply chain pressure

Downstream of Original Equipment ManufacturerImprove environmental performance of productsGreen Supply Chain Programmes/ Management

e.g. Sony Green Partner

Market Drivers

Initiatives to manage & demonstrate good environmental performance e.g.

Environmental Management Systems (e.g. ISO14001)ISO14062 – Eco design

Use of Eco Labels for products and services

Corporate reputation & branding

Green procurementEU public procurement approx. 12 % of GDP

ISO 14001

Financial Drivers

Global Market for Environmental Products & Services - €500 billion (2003)

5% / annum growth

Increasing cost associated with poor environmental performance e.g. energy, wastecollection & environmentally sound end of life management

packaging & WEEE…..Financial motivation for product manufacturer to “design out” environmental problems at source

Cost Benefit & Competitive AdvantageReducing environmental impact

Reduced raw materials costsReduced waste recovery, treatment & recovery costs

Innovation Opportunities

Design and development stages

80% of the environmental impacts of a product, incurred throughout its whole life-cycle

more than 80% of the economic cost connected with a product.

Opportunities:-

Prevent/minimise environmental impacts at sourceCost, Competitive Advantage, new markets

How to do Eco design Checklist? ........Rethinking Required

Find ways to meet our human needs in sustainable ways?

Shelter (Buildings)TransportFood

Shift mindset from producing products to delivering functions/solutions to meet consumer / end user need (s) (VS. starting with a product)

Determine most sustainable way to provide functions

Open mind

•Energy•Information & Communications

Ecodesign Checklist – Raw Materials

Substitute hazardous materials with non hazardous alternatives where feasiblee.g. water based vs. solvent based substancese.g. lead free solder on circuit boardsReduce hazardous waste generation requiring disposal (COST)

Use of reuseable materials, parts and componentsUpcycled

Recyclable materialsBiodegradable materials

Renewable vs. non renewable resourcesFossil fuels, metals, plastics, paper, timber

Reduce energy inputs

Reduce the volume of materials used

Ecodesign Checklist

Design product to have extended working life

Modular designUpgradeable for new technology

Functionality, energy performance etc.Repair, upgrade and maintenanceBenefits: Resource use & Waste

Chose raw materials & design to maximise recovery for reuse at end of life (products, parts & components) (best eco option)

Recycling and recovery of energy Include cost of end of life mgt.

Xerox

Closed loop remanufacturing

4 remanufacturing facilities globally

e.g.Dundalk

Add on servicesRepair, Upgrade, End of Life take backLease / OwnershipB2B / B2C

Xerox

Environmental BenefitsReduces raw material use Reduces energy to mft. new parts (390,000MW hours (light > 315, 000 homes)), Extended product life = less waste (2003: 73,000 tonnes diverted from landfill)

Financial Benefits2003

$ several hundred million cost savings (Xerox, EHS Report 2004)

MICROPRO Computers, Dublin

Applied eco design to Computers

Designed closed loop PC solution Modular components designed for upgrade, reuse and recycling

Repair/maintenance, upgrade services

No loss in functionality for userTechnology required

Extend life time of PC vs. traditional

MICROPRO Computers, Dublin

Reduced materials use and Wasteone third size of traditional PCeliminate/reduce hazardous substancesincrease reuse & recycling options at end of life

Energy efficientScreen (36 Watts vs. 150 (CRT))Power supply unit - 80% efficiency

Social Economy

PC cost is similar to competing

Opportunities for innovation & added value to PC production

add on servicescombined product & service model -profitable

Ecodesign Checklist

Design production process to eliminate / minimise environmental impactsAir, effluents, wasteEfficient use of energy and waterCOST Benefit

Store and Distribute products e.g. Transport

Product Use e.g. Minimising energy usage

e.g. Electronics goods, building products Quantity & nature of consumables needed for proper use & maintenance

Waste generationEnvironmental information

Summary

Significant case for designing environmentally superior products & services

EnvironmentBusiness

Increasing legal & market driversSound business model

WIN WIN Opportunities Environment & Business Internationally & Ireland

Improved environmental performance

effective environmental solutions

Improved functionality

Cost Savings & Competitive Advantage

Opportunities for innovation & added value to business

Further Information

Enterprise Ireland Environment Policy Dept. dorothy.maxwell@enterprise-ireland.comTel. 01 808 2612 / 2229www.envirocentre.ie

Ecodesign in Electronics/ICTwww.envirocentre.ie/electronics

Environmentally Superior Productswww.enterprise-ireland.com/esp