A NEW ENVIRONMENTAL LABEL: INPUT FROM INDUSTRIES
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1 A NEW ENVIRONMENTAL LABEL: INPUT FROM INDUSTRIES R. Luciani, P. Masoni, C. Rinaldi, A. Zamagni LCM2007 Zurich, 28 August 2007
2 The label paradox The toolbox of environmental communication is quite broad, but: In the last years, an uncontrolled proliferation of labels, with different format and contents Credibility, reliability and transparency are not always accomplished Some labels lack the communicative immediacy necessary to be understood by consumers The available standard communication/certification tools do not fully cover the broad spectrum of needs ISO Type I. Not for all product categories ecolabel criteria are available. It seems not suitable for very fast changing products. ISO Type II. Misuse! They do not cover the overall environmental quality of the product. ISO Type III. Not very suitable for B2C It requires a not negligible initial investment for Product Category Rules development, their consultation and for the detailed LCA study. The choice among eco-labels is a difficult item if we want to combine all the requirements of an effective communication LCM
3 Our considerations Consumers search for environmental information but the message varies according to the position in the product chain different sensitiveness by consumers related to different products The definition of an environmental communication tool shall consider: Information channel Potential market penetration of the product Presentation of environmental information (symbols, logos, etc.) It s not a matter of creating a new label but of focussing on the contact points among them integration! LCM
4 Our path towards the label Starting point: wood-furniture sector, with its peculiarities: The relevance of the sector for the Italian and European economy and its features; European criteria for ecolabel in the wood furniture sector are not available yet; We developed a new label as a result of a balance between industries needs and technical feasibility, by considering the following aspects: The adoption of a proactive approach by the firms (the firms should understand their convenience). The development of easy tools and procedures, with a low investment; An open dialogue along the whole product chain A step by step approach: continuous improvement principle LCM
5 Label main features Target: both individual and collective consumers Technical features: Awarded after the implementation of a Product Oriented Environmental Management System (POEMS) as a mean to communicate to the market: based on a life cycle approach and on the continuous improvement principle very suitable for the wood-product chain, in which the main environmental impacts are related to the upstream processes; Communication content: the commitment of the firm towards the environment, Firms knowledge of the most significant environmental aspects of the whole product life cycle and firms willingness to manage them in order to further reduce the environmental impact of the life cycle. The communicative content of the label is reinforced by the Product Environmental Report (PER); Sector(s): Developed in the wood furniture sector but extendable to other sectors. LCM
6 The procedure for obtaining the label (simplified) LCA of the product Definition of an environmental program referred to the product life cycle hot spots Implementation of the EMS Simplified system Product Environmental Report (PER) 3 rd rd party party POEMS Certification Communication to consumers Program Program Operator Operator Label on the product LCM
7 Pilot activity with firms 3 leader firms of the furniture sector tested the model, in order to highlight its limits and opportunities, in terms of methodological aspects and applicability: Elica: cooker hoods; Scavolini: kitchen furniture; Upper: office furniture. The firms produce different products, with different markets and users, and consequently what and how to communicate is completely different for each of them. The choice of the product represented the most critical point of the activity for all the firms, due to the implication at market level. LCM
8 Pilot activity with firms ELICA - cooker hoods THE REASONS OF THE CHOICE PRODUCT SELECTED medium-high level product, in terms of quality and price; the most sold of the range. promotion of one specific product, distinguishing it from all the other of the range. To clearly show the commitment of the firm, making available a product for consumers more sensitive to the environment, guaranteeing high technical and performance levels at the same time. Improvement of competitiveness by the communication of the environmental quality (market segment subjected to a very high competitive pressure). LCM
9 Pilot activity with firms SCAVOLINI: kitchen furniture PRODUCT SELECTED A kitchen model (medium-high) with a typical composition has been defined to test the correct approach of LCA and the applicability of the POEMS system THE REASONS OF THE CHOICE The Kitchen is tailored to user s requirements, in terms of dimension, composition, price and finishing: how to define a standard product? The label shouldn t promote a single kitchen model, but the entire production in order to highlight that the commitment of the firms to environmental aspects is related to all the products; To show that the environment is a priority of the firm that goes in hand with qualitative and performance features. LCM
10 Pilot activity with firms UPPER: office furniture PRODUCT SELECTED A new product, not yet available on the market, for a medium-high target: high aesthetics and ergonomics performances. REASONS OF THE CHOICE Promotion of a new product that represents a new development line for the firm; Analysis of the different opportunities/difficulties with EPD (another office desk has just obtained the EPD with the Swedish System) Upper believes that environmental labels are a strong market lever and makes use of them in order to distinguish the products according to the target (users and market). LCM
11 PER - Product Environmental Report A document available to all interested parties that describes, with a format similar to the Environmental Product Declaration, the most significant environmental aspects identified for the life cycle of the product and the environmental targets that the firm is committed to achieve. The PER is developed by industry, verified by a third party and represents the core of the environmental communication. Two different version of the PER, available to all interested parties, have been conceived: Analytical version (20-25 pages), tested during the pilot activity. Short version (5-6 pages), for dissemination purposes, tailored to the final users, that will be produced when the certification and awarding system of the label will be developed. LCM
12 Content of the PER (analytical version) First part: Description of the environmental product-oriented policy; Goals and content; Description of the firm and of the product analysed; Methodology adopted for the identification of the significant environmental aspects: data quality requirements, assumptions, allocation, impact categories analysed, etc. Second part: LCA results Actions for the reduction of the environmental aspects and the continuum improvement programme ; Third party verification (to be developed). LCM
13 Environmental improvement programme The firm defines and analyses scenarios related to an improvement programme focused on the environmental qualification of its supplier on the most relevant issues (LCA study results). GOALS (measurable) Main goal Steps: - e.g. to increase the purchase of semifinished products with specific features (low energy consumption, reduced use of certain type of raw materilas, etc.) HOW TO ACHIEVE THEM (technical and marketing means) To evaluate the economic impact of the firm due to: -The adoption of measures for the environmetnal improvement -The non adoption of.. To sensitizes firm s uppliers RESP. RESOURCES (in economic and personnel terms) TO BE PERFORMED BY Market resp Purchase resp. Etc.. June 2008 To buy XXX (semifinished products) by suppliers with the features required in the main objectives of the firm.. Etc. LCM
14 Steps for the POEMS certification and the awarding of the Label The POEMS Label System will be managed by a Program Operator according to the specific standard, procedures and regulations. A Third Party will verify: the methodology used by the organization to identify the significant environmental aspects (data quality requirements, assumptions, allocation, impact categories analysed,...) The adequacy of the implemented EMS against the POEMS standard The correctness and completeness of the PER The Program Operator will finally award the specific product(s) with the POEMS Label LCM
15 Conclusions The label development hasn t be completed in terms of: Analysis of the real cost of the implementation of the models Definition of the symbol to put on the label The pilot test gave a very positive feedback: the firms consider the POEMS label + PER as a viable solution, suitable for their specific needs. For the firms involved in the pilot activity wasn t their first experience! But the true test will be the market: this test will be possible only after the implementation of the Program Operator is under definition. The operative procedures and regulation have been already drafted. UNI, the Italian Standardisation Body, is working on the development of a Technical Report based on the POEMS system developed by ENEA The Italian Ministry of Environment is fostering an open discussion among the different experiences developed or in progress in the wood furniture sector about environmental labelling. The aim is to develop a national label scheme suitable for the specific Italian conditions (SMEs, industrial districts, etc.) LCM
16 Contacts Alessandra Zamagni Web-sites of the project: LCM
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