Unlock the Value of Product Sustainability in Industrial Manufacturing PE INTERNATIONAL with Zumtobel Group 4 April 2012
Today‘s Speakers and Agenda
Today’s Webinar Agenda: Sebastian Gann Zumtobel Group Environmental Program Manager
Brief Introduction to PE International Product Sustainability Leadership Today and Tomorrow Operating Landscape
Pete Girard PE INTERNATIONAL Sr. Consultant Product Manager, GaBi Software
Brief Introduction to Zumtobel Group Zumtobel’s EPD System Initiative, Bringing Product Sustainability to Scale Questions
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PE is a Global Sustainability Business
Helping clients succeed since 1991 3
PE’s Sustainability Services at a Glance
Understand
Sustainability Assessment
Strategize
Sustainability Planning & Management
Improve
Sustainability Performance & Improvement
Succeed
Key Performance Indicators
Sustainability Improvement Journey
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PE Products & Services Overview
Software and Services Overview Product Sustainability Software (GaBi)
Corporate Sustainability Software (SoFi)
• Carbon & Energy Optimization • Design for compliance and • Environmental environment Management • Integrated/ embedded • Sustainability Reporting impact calculations • Supply Chain • Compliance process Sustainability management (CPM) • Portfolio Sustainability • Collaborative Sustainability Management and Communication • Life cycle assessment
Sustainability Consulting Services
Proprietary & Industry- Specific Content
• Sustainability Assessment • Planning and Management • Performance and Improvement • Corporate social responsibility auditing & benchmarking (CSR InsightTM)
• LCI Databases and Sustainability Content • Regulatory Content for Product Compliance • Best Practices Library • Benchmarking Libraries
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PE is the market leader in relevant verticals 40% of the Fortune Global 500 companies are customers of PE International
Industry
Sample customers
Automotive Building & Construction Chemicals Electronics Energy & Utilities Food & Beverage Industry Associations Metals and Mining Transportation & Logistics
and many other confidential clients 6
Product sustainability for business success
1/23/2012
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Understand the Drivers to Operate More Sustainably
Obtain Credible Information
Regulations
Reduce Energy Impacts
DRIVERS Reduce Resource Impacts Supply Chain Issues
Industrial Manufacturer Design for Environment Create & Sell Sustainable Products
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Understand the Opportunities to Improve
Minimize risks
Improve regulatory compliance
Reduce Resource Costs
OPPORTUNITIES Create more sustainable products
Sustainability Opportunities
Build brand equity
Optimize Supply Chain
Develop more sustainable processes
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Where are Most Manufacturers Today?
Market Penetration Curve
A graph of Everett Rogers Technology Adoption Lifecycle model
a substantial portion of companies are deriving financial benefits from their sustainability efforts Sustainability Nears a Tipping Point; MIT Sloan Management Review with BCG, Winter 2012.
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Where are most manufacturers today?
Long-term company success
Drive down cost & increase revenue
Overview / Orientation
Material Comparison
Screening Maturity of LCA usage 11
What does leadership look like today?
Long-term company success
Drive down cost & increase revenue
Product Communication & Verification
‘….LCA is increasingly kicking in
Process & Resource Efficiency
as strategic sustainability initiative’
Verifiable BOM / BOP & Compliance
[S.Stokes, Gartner Research, Sept 2011]
Eco-design & sustainable product Innovation Rapid Prototyping (Generic LCA)
Overview / Orientation
Material Comparison
Screening Maturity of LCA usage 12
What does leadership look like tomorrow?
Long-term company success
Value Chain optimization Sustainable Product Portfolio Management
Drive down cost & increase revenue
Product Communication & Verification Process & Resource Efficiency Verifiable BOM / BOP & Compliance Eco-design & sustainable product Innovation Rapid Prototyping (Generic LCA)
Overview / Orientation
Material Comparison
Screening Maturity of LCA usage 13
Volkswagen AG
“GaBi provides the VW experts with detailed data for strategic decisions.” Dr. Stephan Krinke, Head of Product and Environment
Image © VW AG
• Optimization & design for environment in product development • Product compliance • Marketing and communication
Image © Daimler
• Analyzing recyclability of vehicle components • Optimizing material choices (e.g. energy demand vs. weight) • Scenario-modeling for product improvement
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Industrial Design Paradigm
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Industrial Design Organizational Functions
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Industrial Design Data Documentation
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Industrial Design Environmental Simulation and Reporting
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Summary
Long-term company success
Value Chain optimization Sustainable Product Portfolio Management
Drive down cost & increase revenue
Product Communication & Verification Process & Resource Efficiency Verifiable BOM / BOP & Compliance Eco-design & sustainable product Innovation Rapid Prototyping (Generic LCA)
Overview / Orientation
Material Comparison
Screening Maturity of LCA usage 20
Introducing Zum Tobel
http://www.panoramafotograf.eu
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History From family firm to global player
Dr. Walter Zumtobel establishes “Elektrogeräte und Kunstharzpresswerk W. Zumtobel KG” in Dornbirn, Austria
1928
195 0
196 3
The company becomes a stock corporation
Jürg Zumtobel becomes Chairman of the Supervisory Board
Acquisition of the luminaire manufacturer Staff, Germany Ledon Lamp GmbH established
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1991
1993/9 4
2000
200 1
200 3
First international design award for a Zumtobel product
Jules Thorn founds the “Electric Lamp Service Company”
Zumtobel Licht GmbH and Tridonic Onset of LED Bauelemente GmbH become activities independent subgroups Acquisition of Thorn Lighting Group, UK
2006
2009
2010
Initial public offering (IPO) Harald Sommerer becomes Chief Executive Officer
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Lighting solutions Current reference projects Project: MAXXI Museum, Rome/ IT (2010)
Architect: Zaha Hadid / Patrik Schumacher, Rome Lighting design: Equation Lighting, London/UK Products: VIVO, TECTON, ARCOS, LUXMATE
Project: Galatasaray, Istanbul, Turkey Lighting design: Roger Narboni Products: Mundial R high-performance floodlights
Project: Terminal V, Heathrow – London, UK Products: dimmable DALI ballasts for 120,000 light fittings; 2,600 motion sensors; world’s largest single DALI emergency lighting control system
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Energy efficiency is a growth driver for the lighting industry 19% of worldwide electrical energy for lighting
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Drivers of environmental data
1. Standards and legislation
4. Architects
2. Customer awareness
5. Green procurement programs 3. Green building councils
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Ecometrics Studies show a huge increase in green building certifications.
By 2008, 30% of all non residential buildings were green buildings*.
growing share of green buildings Steigende Tendenz bei Green Building
By 2013 it will be 60%*. Share of buildings %
100% 80% 60% 40% 60 %
20% 30 %
0% 2008
2013 Year
* McGraw-Hill Construction, Global Green Building Trends: Market Growth and Perspectives from Around the World SmartMarket Report (2009)
umw eltzertifizierte Gebäude Conventional buildings Green buildings
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herkömml. Gebäude
Ecometrics Green buildings pay off higher rents
+ 35%
higher transaction value + 6%
reduced energy costs
energy costs rents
transaction value
Henley University UK, New Evidence on the Green Building Rent and Price Premium (2009) USGBC & New Building Institute, Energy Performance of LEED for New Construction Buildings (2008)
- 45%
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Ecometrics Green buildings increase user wellbeing and productivity
 Increased productivity  Reduced sick-leave days
+ 5% Sick-leave days* productivity -3 * p.a./employee
CBRE Richard Ellis and USD University of San Diego, Green Buildings and Productivity (2009)
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Demand for product related environmental data What do we have to do?
Seize sustainable product development know and improve our products
Tell it in a credible way Assure reliability and transparency of data
Give answer to customers’ questions amount of packaging material composition cumulated embodied energy global warming potential provision of EPDs .. http://www.impactlab.net/
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Develop sustainable products Assessment of technologies, materials, processes
~1000kg CO2 CO2 equiv.
~10kg CO2
~1kg CO2
materials
manufacturing
~1kg CO2
1kg CO2
Life-cycle
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transport
use-stage
end of life
Environmental Program Declarations Communicating product information to customers so they can meet standards EPD
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ERP system as data source for LCA calculation We can obtain LCA input data from the ERP system + we can build a query to collect it
ERP ERP data
Life-cycle
materials
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manufacturing
transport
use-stage
end of life
Transfer data from ERP system to LCA software via learning interface Product data → LCA data
ERP
ERP data
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LCA
LCA data
Complete data flow from ERP system to EPD Product data → LCA data → EPD
ERP
ERP data
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LCA
LCA data
EPD
Verification On process level, log files for uninterrupted reproducibility
ERP
ERP data
LCA
LCA data
verification
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EPD
Availability Customers can download EPDs via online catalogue
EPD
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Summary How Zumtobel is capturing business value with Product Sustainability
Resourcing the Zumtobel Group to Deliver Providing internal product design guidance Supporting compliance standards development for products Leveraging existing business information systems Scaling up EPD program to reduce unit costs and increase availability to customers
Supporting the Growing Market Demand Communicating sustainable design initiatives to customers Delivering documented EPD results to meet evolving standards Investing in a key market trend Ability to rapidly problem solve for customers
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Thank you for your kind attention.
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Product Sustainability Leadership Trends Today’s leaders manage product sustainability Tomorrow’s leaders focus on product portfolios
Increasing focus on systems and integration Increasing efficiency and benefit with scale The market is moving quickly where customer drivers are clear
QUESTIONS? 39
Thank you for your attention!
Get in touch with our experts:
Pete Girard, PE INTERNATIONAL p.girard@pe-international.com
We look forward to welcoming you back for more PE Academy workshops and webinars soon: http://www.pe-international.com/academy/webinars/