EPDs in the Construction Sector by Sphera

EPDs in the Construction Sector An Overview of Drivers, Practices, and Strategies

Steve Baer Nicholas Santero Susan Fredholm Murphy

Speakers

Steve Baer Principal Consultant

Nicholas Santero Senior Consultant

Moderator

John Heckman Managing Director

Susan Murphy Senior Consultant

PE International Products and Services Overview

 Carbon & Energy Optimization

 Life Cycle Assessment and Carbon Foot printing

 Environmental Management

 Design for Compliance and Environment

 Sustainability Reporting

 Collaborative Sustainability and Communication

 Supply Chain Sustainability

 Integrated / Embedded Calculation Engines

 Portfolio Sustainability Management

 Compliance Process Management Proprietary & Industry-specific Content

 Sustainability Strategy Development

 LCA Databases and Sustainability Content

 Sustainability Assessment

 Regulatory Content for Product Compliance

 Sustainability Planning and Management

 Best Practices Library

 Sustainability Performance and Improvement

 Benchmarking Libraries

31.07.2012

Global locations

PE Offices in: Berlin • Bhilai • Boston • Boulder • Chicago • Copenhagen • Guelph • Hamburg • Istanbul • Johannesburg • Kuala Lumpur • London • Lyon • Mumbai • Melbourne • Ottawa • Paoli/Philadelphia • Perth • Ravenna • San Francisco • Seattle • Sheffield • Stuttgart • Tokyo • Vienna • Wellington • Zurich

31.07.2012

Global customer base North America

31.07.2012

Europe

Rest of the World

Unparalleled expertise 15+ years experience

< 5 years experience

27%

5 – 10 years experience

29%

22%

22% 10 – 15 years experience

29 Dr.’s / PhD’s… 159 Diploma’s / MSc’s

31.07.2012

Agenda

1. What are EPDs? 2. Market Drivers

3. EPD Development Process 4. Barriers and Solutions

5. Streamlined EPD Generation using GaBi

What are EPDs?

Why Should I Care About Environmental Product Declarations? • “I’m looking through you. Where did you go? I thought I knew you. What did I know?” – The Beatles “I’m Looking Through You” on Rubber Soul

z • “It is no longer enough to report the positive impacts of a product. Full disclosure is the only way to create and support an authentic message in today’s marketplace.” – John Wells President and CEO of Interface Americas

Environmental Impact Reporting A Need for Brevity and Consistency

Environmental Facts Functional unit: 1 yd3 of 3,000 psi concrete 9.3x105

Primary Energy Demand [BTU] Renewable [BTU]

5.9x104

Non-Renewable [BTU]

8.7x105

Global Warming Potential [lb CO2 eq]

360

Acidification Potential [lb H+ eq]

Eutrophication Potential [lb N eq]

0.39

Ozone Depletion Potential [lb CFC-11 eq]

2.4x10-10

Smog Potential [lb O3 eq] Boundaries: Cradle-to-Gate Company: XYZ Concrete Total Recycled Content: 30%

21 Fly Ash: 20% Slag: 10%

Image source: adapted from www.turbosquid.com

EPDs, LCAs, and PCRs Decoding the Acronyms

The Guidelines

Product Category Rule (PCR) “Set of specific rules, requirements, and guidelines for developing Type III environmental product declarations for one or more product categories” (ISO 14025)

The Analysis

Life Cycle Assessment (LCA) “Compilation and evaluation of the inputs, outputs and the potential environmental impacts of a product system throughout its life cycle” (ISO 14040)

The Declaration

Environmental Product Declaration (EPD) “Providing quantified environmental data using predetermined parameters and, where relevant, additional environmental information” (ISO 14025)

Environmental Product Declarations (EPDs) Type III Environmental Declaration

Succinct reporting of life cycle environmental profiles • Declare environmental impacts (e.g., greenhouse gas emissions, energy demand) • Facilitate equitable comparisons across similar products • Encourage the demand for (and supply of) environmentally-preferable products Rigorous creation and verification process • Ensures credibility and consistency with best practices • Involves multiple third-party review steps Standardized for consistency • Standardized through ISO 14025: Type III Environmental Declaration • Follows ISO 14040/44 standards for Life Cycle Assessment (LCA)

Market Drivers

Market Drivers Why should you get involved?

Structural Steel

Asphalt Rejuvenator

• EPDs are quickly gaining traction in all industries

• Standard format for communicating environmental performance

• Activity in the B&C sector

• Specific guidelines • ISO 14025 – General EPD

guidance • ISO 21930 – Specific B&C guidance • EN 15804 – PCR harmonization

• PCRs already exist for many construction products

• Metals and basic materials • Building products Concrete Roofing Tile

Market Drivers EPDs in LEED

• EPDs are being integrated into the LEED rating system

• Currently put forth as Pilot Credit 61 (formerly Pilot Credit 43)

• LEED v4 Draft, 4th Public Comment • Credit Category: Materials and Resources Credit Category

• Credit Name: Materials Life Cycle Assessment and Disclosure

Market Drivers EPDs in LEED

• Two points possible • One for structural elements • One for non-structural elements

• Two options • Industry-wide EPD: calculated at cost • Product-specific EPD: calculated at twice cost

Market Drivers Webinar Poll

• Why are you interested in EPDs? (check all that apply)

• • • • •

Direct demand from customers

LEED points Reliable upstream reporting Marketing purposes Internal knowledge / Benchmarking

Results will be presented in a few minutes

EPD Development Process 18

EPD Development Process 1. Search for and evaluate existing PCRs

2. If necessary, create a new PCR

3. Conduct an LCA 4. Verify that the LCA follows the PCR 5. Create the EPD 6. Register the EPD with a program operator

EPD Development Process 1. Search for and evaluate existing PCRs • GEDnet – the Global Environmental Declarations Network

• • •

http://pcr-library.edf.org.tw/ JEMAI – Japanese Environmental Management Association for Industry http://www.ecoleaf-jemai.jp/eng/pcr.html The Green Yardstick http://nywww.environdec.com/en/Product-Category-Rules/PCR-Search/ IBU – Institut Bauen und Umwelt e.V. (German Institute for Buildings and the Environment) http://bau-umwelt.de/hp478/Product-Category-Rules-PCR.htm

2. If necessary, create a new PCR

PCR proposal

Draft creation

Open consultation

Panel review

Approval and publication

EPD Development Process 3. Conduct the LCA

Identify Needs & Drivers

Define Goal & Scope

• • • •

Product Definitions Goals Functional Unit Boundaries Data Requirements Exclusions Mapping the System

Refine Goal & Scope Data Collection

Modeling in GaBi Evaluate environmental indicators, such as: • Global Warming Potential • Primary Energy Demand • Acidification • Eutrophication • Smog • Toxicity

Run Analysis

Review and Edit Model

Types of inputs (Materials, Energy, Costs, etc.) Information from business units & suppliers (EH&S, Purchasing, Process Engineering, Technical Support, R&D, etc.)

Quality Control & Check

Final Analysis & Interpretation

Develop Product Profiles, Communicate to Customers, Integrate with ISO 14001, etc.

EPD Development Process 4. Verify the LCA • Third party verifies that the LCA follows •

ISO 14040/14044 guidelines Conformance with selected PCR

5. Create the EPD • Follow the program operator template • Get your marketing department involved

6. Register the EPD with a program operator

• Multiple operators established in North America

Barriers and Solutions

Barriers and Solutions Time and Resources + Quality Assurance

$, 

PCR

LCA

EPD

$, 

Barriers and Solutions Time and Resources • Define product category • Develop compliant rules • Facilitate stakeholder engagement

$, 

• Synthesize LCA into EPD, according to PCR • Include additional environmental information • Disclose LCI data and environmental impacts

$, 

PCR

LCA

EPD

$, 

• Data collection • LCA modeling • Generation of results • Revise according to QA process 25

Barriers and Solutions Quality Assurance • Third party review (with public comment) • Compliance with ISO 14040 and 14025 • Meets Program Operator rules

$, 

• Program Operator review • Conformance with PCR and ISO 14020 and 14025 • Meets Program Operator rules

$, 

PCR

LCA

EPD

$, 

• Third party review • Conformance with PCR and ISO 14040 and 14025 • Data quality (e.g., representativeness) 26

Barriers and Solutions Removing Costs through Streamlining

• Individually, EPDs are resource-intensive • LCA reports are thorough, detail-oriented documents • EPDs often only reflect a single products

• How can we… • • • •

…decrease the time and financial resources needed to create an EPD? …expand the breadth of products/families declared? …create consistent reports? …capture variability across different supply chains?

Barriers and Solutions Removing Costs through Streamlining

PCR

LCA

EPD

PCR

LCA

EPD

PCR

LCA

EPD

Barriers and Solutions Removing Costs through Streamlining

$, ď&#x201A;¸

LCA

EPD

LCA

EPD

LCA

EPD

PCR

Barriers and Solutions Removing Costs through Streamlining

EPD

$, 

LCA + Tool

PCR

EPD

$,  EPD

Barriers and Solutions Removing Costs through Streamlining

$, 

LCA + Tool

PCR

$, 

Streamlined EPD Generation using GaBi 32

Barriers and Solutions Removing Costs through Streamlining

$, 

LCA + Tool

PCR

$, 

Streamlined EPD Generation Using GaBi Association Members with Existing Templates

1. Gain Web-Access to Existing GaBi LCA Model with EPD template for select PCRs

â&#x20AC;˘

Working together with industry associations, PE has already prepared standard models and EPD templates for some product category rules.

â&#x20AC;˘

Gain access to this site through your association or directly from PE

Streamlined EPD Generation Using GaBi Association Members with Existing Templates

1. Gain Web-Access to Existing GaBi LCA Model with EPD template for select PCRs

2. Enter your company-specific product data • • • •

Bill of Materials Scrap Rate, Energy Utilization etc.

Streamlined EPD Generation Using GaBi Association Members with Existing Templates

1. Gain Web-Access to Existing GaBi LCA Model with EPD template for select PCRs

2. Enter your company-specific product data 3. Export draft EPD to Rich Text Format

Streamlined EPD Generation Using GaBi Association Members with Existing Templates

1. Gain Web-Access to Existing GaBi LCA Model with EPD template for select PCRs

2. Enter your company-specific product data 3. Export draft EPD to Rich Text Format 4. Apply Corporate Logos/Images and other final edits in Word Processor

Streamlined EPD Generation Using GaBi Association Members with Existing Templates

1. Gain Web-Access to Existing GaBi LCA Model with EPD template for select PCRs

2. Enter your company-specific product data 3. Export draft EPD to Rich Text Format

4. Apply Corporate Logos/Images and other final edits in Word Processor

5. Submit EPD to Program Operator for Verification

â&#x20AC;˘

PE has professional relationships with many program operators

Streamlined EPD Generation Using GaBi Association Members with Existing Templates

1. Gain Web-Access to Existing GaBi LCA Model with EPD template for select PCRs

2. Enter your company-specific product data

3. Export draft EPD to Rich Text Format 4. Apply Corporate Logos/Images and other final edits in Word Processor

5. Submit EPD to Program Operator for

Updated Annually

Verification

6. Repeat Steps 2-5 in future years â&#x20AC;˘

PE updates underlying data (energy and materials) annually 39

Streamlined EPD Generation Using GaBi GaBi Users

1. Model Product Life Cycle in GaBi according to your company-specific product and applicable PCR

Streamlined EPD Generation Using GaBi GaBi Users

1. Model Product Life Cycle in GaBi according to your company-specific product and applicable PCR

2. Apply generic EPD template or PCR-specific template

Streamlined EPD Generation Using GaBi GaBi Users

1. Model Product Life Cycle in GaBi according to your company-specific product and applicable PCR

2. Apply generic EPD template or PCR-specific template

3. Export draft EPD to Rich Text Format 4. Apply Corporate Logos/Images and other final edits in Word Processor

Updated Annually

5. Submit EPD to Program Operator for Verification

6. Repeat Steps 2-5 in future years 42

Case study Client

Large electronics company •

Project Overview

•

• • •

Goals

• Outputs •

Develop EPDs for 59 printers in 14 families Streamline EPD generation for each product Enable EPEAT silver rating Build LCA capacity within company Identify strategic opportunities for environmental improvement

Publication-ready EPDs for all printers LCA tool to support future analyses

Case study Client

Interface

Interface®

• Project Overview

•

• Goals

•

• Outputs

•

Support a commitment to transparency Ascertain cradle-to-grave information for product families Create product-specific EPDs for all carpet lines Identify high-impacts sources and strategies for impact reduction

90% (and counting) of products are documented through EPDs Integration of multiple reduction methods (e.g., material substitution)

Summary • Environmental Product Declarations (EPDs)

• Declare environmental impacts using LCA principles • Growing importance in the building and construction community, including integration into LEED v4

• EPD development process •

• Multiple quality assurance steps ensure credibility • A single EPD can be resource-intensive to generate

• Significant advantages to streamlining EPD development • Use custom tools to generate EPDs • Large economy of scale benefits  reduced cost + time

PE Assistance at All Levels

Internal effort and expertise

PE training on GaBi 5 LCA software and databases

Consulting support

Use of PE-designed EPD templates

PE Support for LCA modeling and EPD generation

Access to web-based i-report to generate on-demand EPDs

Use of PE-designed ireport to generate ondemand EPDs

Contact Information

Steve Baer 617-247-4477 ext 112 s.baer@pe-international.com

Susan Fredholm Murphy 617-247-4477 ext z 106 s.murphy@pe-international.com

Nicholas Santero 617-247-4477 ext 123 n.santero@pe-international.com