Reporting on carbon footprint of products

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1 Reporting on carbon footprint of products

2 Implications of using the international standard ISO for reporting on carbon footprint of products Ellen Riise Senior Scientist Research & Innovation Support 2

3 SCA a global consumer goods and paper company We offer personal care products, tissue, packaging solutions, publication papers and solid-wood products We are an 11 billion EUR company (net sales 2008) and are more than 50,000 employees We operate in 90 countries Essentials for everyday life 3

4 Sustainability matters Ranked among top 100 most sustainable companies. Ranked 2nd greenest company in the world. One of 25 companies that get a special representation at the Copenhagen meeting Almost all of SCA s products mainly contain renewable raw materials Continued shift from coal and oil to biofuel and natural gas SCA plants three trees for every one harvested SCA is one of the world s largest suppliers of FSC certified products SCA s forests absorb as much carbon dioxide as emitted by the Group s production facilities 4

5 Four business areas Forest Products Personal Care 15% 21% 30% 34% Packaging Tissue Sales split 5 Total sales 2008: 11 bn EUR

6 Strong global and regional brands Eastern Europe North America Europe Latin America Asia Pacific 6

7 Having said this It s time to look into the Carbon footprints of products and what it will mean for a company and the role of carbon footprints as a part of the environmental footprint and how the international standard ISO can support companies that wants to quantify and communicate Carbon footprints and how to get support in the environmental work of the company 7

8 The carbon cycle Gt C/year Gt C

9 Carbon in the life cycle for 9

10 The world is expecting companies to act! 10

11 Carbon reduction benchmark EU until % reduction of carbon 20% more efficient 20% renewable energy Discussions about -30%! Kyoto 5% below absolute level 1990 until 2012 UN/ IPCC % by 2020 Volvo Carbon free factories -30% Eco cars Wal-Mart -20% reduction on overall carbon until 2015 SCA -20 % carbon by 2020 Tesco % carbon by 2020 reduction on buildings, restrict air transport and increase bio fuels Carbon labels on products Philips - 20% until 2020 BASF -38% % Evonik -20% Carbon Cadbury -50% reduction of net absolute carbon emissions by % minimum in-house HP 15% below 2006 level until 2010 for HP units and leasing units Tetrapak -10% absolute Co op. WWF Focus on renewables Toyota -15% from 2000 Eco cars Coca Cola -40% carbon Carbon Trust 11

12 Retailers in the forefront Retailers are focusing on environment and sustainability Retailer Forum EU Wal Mart Eco labelled retailers Score cards Terry Leahy, CEO Tesco I am determined that Tesco should be a leader in helping to create a low-carbon economy 12

13 Carbon footprint of a product The sum of the greenhouse gases from the life cycle of a product CO CH 2 4 CO CO 2 2 CO 2 N 2 O CO 2 CO 2 CH 4 CO 2 13

14 How to quantify and communicate environmental performance of a product? A Life cycle assessment (LCA) studies the environmental aspects and potential impacts throughout a product s life cycle from raw material acquisition through production, use and disposal, i.e. Cradle-to-grave Standard ISO and A Type III Environmental declaration communicates the environmental performance of a product, based on an LCA Standard ISO

15 Life Cycle Assessment (LCA) Input of energy and resources and output of emissions to air and water are calculated and added together for each activity in the life cycle Life Cycle Inventory (LCI) Life cycle inventory Air Water CO 2 (fossil) kg 423,5 AOX g 0,464 CO 2 (bio) kg 1871,1 COD kg 0,295 CH 4 kg 6,41 N-tot kg 0,037 NO x kg 1,35 P-tot kg 6,604 Particles kg 0,113 15

16 Life cycle impact assessment environmental impact categories Life Cycle Inventory (LCI) Life cycle inventory Air Water CO 2 (fossil) kg 423,5 AOX g 0,464 CO 2 (bio) kg 1871,1 COD kg 0,295 CH 4 kg 6,41 N-tot kg 0,037 NO x kg 1,35 P-tot kg 6,604 Particles kg 0,113 CO 2 (fossil) Also called Carbon Footprint CH 4 OXYGEN DEPLETION O 2 SO x NO x COD 16

17 and bioplastics Bioenergy and greenhouse gases CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 17

18 How to report the Carbon footprint of a product? The two parts of the standard ISO cover the quantification and communication Quantification is based on the LCA methodology ISO series Communication is based on methodology and procedures for Type III environmental declarations ISO Additional guidance on greenhouse gas management ISO

19 How to report the Carbon footprint of a product: What is the role of the company? What the company has to do is depending on where it is in the product s value chain The producing company, putting together different raw materials into a finished product Cradle-to-grave The supplier, providing the producing company with raw materials Gate-to-gate process data Cradle-to-gate 19

20 Gate-to-gate data Environmental questionnaire, concerning information about inputs, outputs and transports Inputs: Raw materials Packaging materials Fuels Electricity Outputs: Products Emissions of greenhouse gases Waste Transportation route for raw materials and waste 20

21 To report a carbon footprint Analyse the delivery of the data to the stakeholder Map the whole value chain Do the data need to be full carbon footprint? or Gate-to-gate/process data? Are there existing Product Category Rules, i.e. industry specific calculation rules? Find data for each single process Site or industry average data for raw material? Site specific data for the own site Generic data for common data like electricity production, fuel production, polymer production, production of other chemicals, agriculture, forestry, waste handling Will verification be needed? Will the information be communicated to customer, B2B? Will the information be communicated to consumer, B2C? Special requirements when consumer communication is the objective 21

22 What is the support from the standard ISO 14067? The standard is harmonized with other initiatives on carbon footprint Creates a common language by the definitions Principles Details on calculation Defining the scope and system boundaries Treatment for specific resources and carbon storage Time period for assessment Allocation of co-products Requirements for the communication The definition of industry specific rules and requirements will be created with so called Product Category Rules A parallel to what is used within Environmental declarations, ISO Process for verification 22

23 How to improve your carbon footprint? Reduce the use of energy Change the type of energy used; i.e. going from coal or oil to natural gas MJ kwh Change from a fossil fuel to a biofuel, or sun or wind power 23

24 How to improve your carbon footprint? More efficient production - less waste in the factory Produce the product with less material Produce the product with recycled material Produce the product with renewable material But, the new material has to be validated with LCA More efficient transports Choose the right supplier 24

25 How to manage requirements on carbon information? See to that the company has the knowledge about its major environmental impacts ISO is it possible to implement an environmental management system? Brings structure to the environmental work and makes it less personal dependent Training of employees Energy efficiency Start to measure Reduction maybe possible Waste reduction How much of bought raw material ends up in finished product Reduce waste and increase your result Handling of chemicals REACH List of substances of very high concern (SVHC) List of substances with restrictions 25

26 How to manage requirements on carbon information? See to that no one knows the product s environmental performance better than See to that the company has the knowledge about its major environmental you! impacts ISO is it possible to implement an environmental management system? Brings structure to the environmental work and makes it less personal dependent Training of employees Energy efficiency Start to measure Reduction maybe possible Waste reduction How much of bought raw material ends up in finished product Reduce waste and increase your result Handling of chemicals REACH List of substances of very high concern (SVHC) 26

27 How to manage requirements on carbon information? Is it possible to get support? National projects Environmental protection agencies Trade associations Co-operations with universities Projects Diploma workers Co-operations in the supply chain 27

28 CPM is a national competence center at Chalmers University of Technology. CPM is jointly funded by Industry, IVL and Chalmers To find a lot of good publications, please visit: 28

29 Towards sustainable value chains through a common approach for company strategic work and daily operations Funded by the EU LIFE+ Programme Runs Co-operation between AkzoNobel, SCA Hygiene Products and Environmental Systems Analysis at Chalmers University of Technology Facilitate work on: data exchange, communication and cooperation for sustainable development in supply chains developing strategies, communicating and applying tools for sustainability or

30 Conclusions The carbon footprint of a product is the total sum of greenhouse gases in a product s life cycle It is measured with the LCA methodology The international standard ISO gives guidelines and requirements for the quantification and communication When you investigate your carbon footprint, also look for ways to decrease it It is always best to see to your company s total environmental impact carbon footprint is only one There are a number of ISO standards under ISO/TC207 that can support this work 30

31 31

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