1. PE DNA + Portfolio 2. Sources, options, drivers 3. LCA as the common approach to Sustainability 4. Example plastics vs. bio-plastic 5. Conclusions
PE INTERNATIONAL
The environmental profile of plastics over the supply chain according to LCA - ISO 14040 Polyking Event, W端rzburg Germany 2012
Dr. Martin Baitz
1. Welcome, why me meet Founded in 1991 213 employees 1,500+ customers â‚Ź25m sales in 2012
20+ Industry Specializations 160 Sustainability Professionals 200 Man Years of Reference Data Collection 2,000 Man Years of Sustainability Experience
Headquarters and global office locations
PE Offices in: Berlin Bihlai Boston Bolder Chicago Copenhagen Stuttgart Guelph Hamburg Istanbul Johannesburg Kapstadt Kuala Lumpur London Lyon Mumbai Ottawa Perth Ravenna San Francisco Seattle Sheffield Tokyo Wellington Wien Winterthur 3
Sustainability Leaders Perform Better
80% of sustainability leaders gain a competitive advantage from investing in sustainable products
Source: McKinsey
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Sustainability is increasingly important to corporate strategy
ASPECTS OF SUSTAINABILITY Social Economic
* Forrester Research: estimated market take-off timeframe
2011*
Waste Resources
PE International offers Portfolio Management capability and has live customers
Emissions
PE International is the market leader in LCA and offers strong Supply Chain capability
Water Energy
2008*
Carbon Reporting, analysis 1
Enterprise Carbon and Energy Management (ECEM) systems
Source: Forrester Research
2014*
PE International covers reporting and analysis of all aspects of Sustainability Enterprise-wide solution incl. life-cycle assessment (LCA), supply chain sustainability
Integrated financial and sustainability product / service portfolio management to align strategy and investment priorities
CORPORATE VALUE CHAIN 5
Sustainability is a core driver of business success
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By Understanding where there are Opportunities for Improvement .... Reduce Resource Costs
Minimize Environmental Risks
Develop More Sustainable Processes
Creating Create More Sustainable Products
Sustainable Business
Enhance Company Reputation
Values
Build Brand Equity
Optimize Supply Chain Performance
Improve Regulatory Compliance
PE has the assets to deliver a total sustainability solution
• 2,000 man years of sustainability knowledge and expertise
• Encyclopedic Reference Data
• Vertical Market specialists
• Learnings and data captured from over 1,500 projects
• Sustainability Business Intelligence • Sustainability Performance Optimization
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PE helps Customers Improve Sustainability Performance
Succeed! Enhanced corporate & environmental performance
Improve Product and Corporate Sustainability Performance
Strategise the best Understand the Impact of Sustainability on their Business
actions on basis of facts to maximise Sustainibility Performance
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…with solutions that specifically address the needs of unique verticals
ENERGY & UTILITIES
CONSTRUCTION & BUILDING METALS & MINING
TRANSPORT & LOGISTICS AGRICULTURE FOOD ELECTRONICS HIGH-TECH
OIL & GAS
PACKAGING
FINANCE
TOURISM
AUTOMOTIVE
AEROSPACE
APPAREL CONSUMER GOODS
CHEMICAL
MANUFACTURING
RETAIL
MEDIA
GOVERNMENT
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‌.some Customers
1. PE DNA + Portfolio 2. Sources, options, drivers 3. LCA as the common approach to Sustainability 4. Example plastics vs. bio-plastic 5. Conclusions
The environmental profile of plastics over the supply chain according to LCA - ISO 14040
Information source and coverage requirements
It is about processes and products in industry. ďƒ data source industry
LCA is about improving industry processes, services and products.
Global coverage of process chains, multinational companies and international supply chains ďƒ Regionalization
Options to improve a status quo for Chemicals and Plastics
reduction of energy demand
Improve the quality/property
alternative sources
Improvement of EOL
Key aspects and drivers
Best option can be “well informed best compromise” Realistic assessment of burdens and benefits Improvement of the property in use phase often promising Drive for simplicity is taken (efficient decision support) Need for credibility is acknowledged (reliable decision, no hidden trade offs) Reality may complex and proper decisions may complex ISO standardized for professional application and credibility LCA reduces complexity via relevancy
1. PE DNA + Portfolio 2. Sources, options, drivers 3. LCA as the common approach to Sustainability 4. Example plastics vs. bio-plastic 5. Conclusions
The environmental profile of plastics over the supply chain according to LCA - ISO 14040
LCA as know-how basis for different methodologies
LCA basis for different sustainability concepts Integrated Product Policy (IPP)
Life Cycle Assessment (LCA) Resource and Energy Efficiency Carbon Footprint
EU Commission: International Reference Life Cycle Data System (ILCD) Environmental Management System (EMS)
Providing quantitative answers to: Industries, associations, legislators, politicians Consultants, academics Consumers
Water Footprint
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From (technically) measured data to Impacts and risks
Industry-“borne“ LCA data on plastics available in commonly known databases: PlasticsEurope, GaBi, ELCD 17.10.2012
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Quantification of sustainability
Sustainability assessment needs: integrated life-cycle approaches and coverage of all relevant aspects Environmental (quantifiable, LCA standards ISO 14040 ff, state of the art) Economic (quantifiable, e.g. LCC, long-time practice and established) Social (e.g. LCWT quantifiable but also “soft” aspects, increasingly used)
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Environmental, Economic and Social aspects in one approach
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The Life-Cycle approaches….
…avoid shift of problems Between life cycle phases (e.g. ethanol use agriculture) Between protection goals (e.g. CO2 more land use/loss) Between countries and regions (e.g. between EU and Brazil)
..increase (decision) credibility: Framework ISO standards
…. interpret different impacts towards informed decisions (e.g. Global Warming, Nitrification, ….)
N Direction towards sustainability is clearer, Target is a value based political decision
W
E
S 17.10.2012
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1. PE DNA + Portfolio 2. Sources, options, drivers 3. LCA as the common approach to Sustainability 4. Example plastics vs. bio-plastic 5. Conclusions
The environmental profile of plastics over the supply chain according to LCA - ISO 14040
Sustainability aspects of Bio-Plastics options Life-Cycle system
Supply and competition situation Biomass by-product or main product Biomass transport and storage
Biomass supply
Technology development status Kind of energy supply Energy by-product quality Tradeoff end-of-pipe measures Sellable by-products
Bioprocess
Distribution pathways Market introduction Flexible use (blends / pure) New infrastructure
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Bio-plastic use
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Background model “Agrarian production system� important Comparability to fossil reference essential
Clearing process
General agricultural process
Fertilizer Adjustment
Agrochemical processes
Reference system Land use
Tendencies in impacts of bio-based plastics (specific Reference fossil plastics
Global warming
CO2-uptake
Energy demand
often in correlation with GWP
Photosmog
no tendency, very specific, savings in use of conventional energy processes and substances vs. harvesting processes (burning)
Acidification
tendency disadvantage, if agrarian products are used (fertilizers) and especially with harvest burnings
Nitrification
tendency disadvantage, if agrarian products are used (fertilizers) and especially with harvest burnings
Ecotox
no tendency, very specific, savings in conventioal substanc releases vs. substances from pesticides , kind of field technique important
Humantox
tendency advantage due to savings in fossil Energy less Combusion processes
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Example Polyethylene based on bio and fossil sources Overview
Renewable sources
Input
Output
By-products
Ethylene from wheat
5,6 kg wheat (15% water)
1 kg Ethylene
1,97 kg DDGS dry
Ethylene from corn
5,3 kg corn (12% water)
1 kg Ethylene
1,97 kg DDGS dry
Ethylene from sugar beets
20,9 kg sugar beets (75% water)
1 kg Ethylene
0,73 kg DDGS dry + 1,1 kg pellets dry
Ethylene from sugar cane
23,3 kg sugar cane (74,5% water)
1 kg Ethylene
0,88 kg vinasse 60% water + 5,99 kg bagasse 50% water
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Example Polyethylene based on bio and fossil sources The supply chain (wheat option)
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Example Polyethylene based on bio and fossil sources By-product issue
Renewable sources
Standard use of by-product
Optional use of byproduct
Ethylene from wheat
animal feed
as energy source
Ethylene from corn
animal feed
as energy source
Ethylene from sugar beets
both animal feed vinasse partly as fertilizer, bagasse as energy source
as energy source vinasse and bagasse as energy source
Ethylene from sugar cane
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Example Polyethylene based on bio and fossil sources CO2 along the chain
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Example Polyethylene based on bio and fossil sources Results over relevant impacts
100%
Primary energy demand fossil
50%
Primary energy demand renewable Global Warming Potential (GWP) [kg CO2-Eqiv.]
0%
Ethylene via Ethylene from Ethylene from Ethylene from Ethylene from Steam Cracker EU wheat US corn from EU sugar BR sugar cane beet
Eutrophication Potential (EP) [kg Phosphate-Eqiv.]
Fossil Polymer has weakness and strength. Biobased polymer has weakness and strength.
Acidification Potential (AP) [kg SO2-Eqiv.]
-50% Photooxidant Creation Potential (POCP) [kg C2H4-Eqiv.]
-100%
Renewable
Land use
resource
[m / kg ethylene]
Corn (US)
4,91
Wheat grains (EU)
6,31
Sugar cane (BR)
3,05
Sugar beet (EU)
3,48
2
- 246%
-150%
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1. PE DNA + Portfolio 2. Sources, options, drivers 3. LCA as the common approach to Sustainability 4. Example plastics vs. bio-plastic 5. Conclusions
The environmental profile of plastics over the supply chain according to LCA - ISO 14040
Some conclusions concerning the example of bioplastics
crop/ha significant and varying agriculture important impacts due to fertilizer, pesticides, burning CO2 intake driver of positive CO2 balance sugar cane route autarkic (no net fossil energy needed), but sugar cane burning driver for impacts conversion rates crop/EtOH significant and varying and waste water in sugar cane processing important EtOH by-product use and quality (e.g. feed or energy) transport sugar beets show significant influence bio-ethylene from sugar cane lowest land use or renewable options land use of fossil ethylene quasi irrelevant vs. bio routes no full life cycle, to be interpreted with the necessary degree of knowhow, before they are used and communicated further. ďƒ 17.10.2012
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Critical success factors at users Feedback from LC professionals
Data availability and selection in-scope, in-time, in-quality; guidance towards suitable data
“Industry-borne data” real supply chains, inter-sectoral use correct technology for individual branches
Region specific data background systems local process technology
Flexibility of application Useful to address more then single topics No isolated sector solutions – common solutions
Individual modification, adaption and extension
Source: gondreauonline.wordpress.com/
local situation (own data, parameterized data) Individual data on demand
Continuity, support, validation and update frequency Cost of database << Cost for work time to set-up and maintain own data
Looking on 20 years successful LCM in many companies….
LCM is not rocket science !
It is a… … structured approach within ISO procedures … using tools and industry-borne data … of realistic supply chains and specific technology … to represent reality … to enable critical business decisions
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Sustainability is not an Optionâ&#x20AC;Ś.
â&#x20AC;Ś.it is Critical Success Factor and Business Reality
Software
. Knowhow
right direction towards sustainability
Data
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PE INTERNATIONAL PE INTERNATIONAL helps deliver a comprehensive end-to-end approach to Sustainability Performance
People Ethics Planet Environment Profit Economics Profit Enterprise
Profit Earth
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