The Life Cycle Management Navigator Performance Evaluation and

The Life Cycle Management Navigator Performance Evaluation and Environmental Product Declaration Training Session 13 Life Cycle Management Navigator: 13_PR_PE 1 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation What? What is PE? Tool which helps companies to measure and evaluate its environmental performance. Environmental performance: “. . . the extent and effectiveness of actions to address its environmental aspects”. Outline of PE: 1. selecting indicators covering the most important environmental aspects (or problems); 2. collecting and analysing data; 3. assessing the information identify improvement potentials put them into action. Life Cycle Management Navigator: 13_PR_PE 2 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation Where? Areas of Application • To evaluate selected environmental aspects, either - company wide; - for certain departments/production sites/workshops; - for single machines. • To support environmental management, e. g. - do we comply with the regulation? - where are the “low hanging fruits”? during the company’s daily operation • On a more strategic level, PE - helps to benchmark against competitors; - gives guidance on investment decisions. strategic decisions Life Cycle Management Navigator: 13_PR_PE 3 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation Why? Benefits You can only manage what you know, and you can only know what you measure. Why evaluate the performance? • to reveal cost-savings and other benefits; • to identify and prioritise improvement potentials; • to track and document performance and progress in minimising the environmental impacts; • to demonstrate and communicate the improved performance to stakeholders (public, financial sector, insurances, unions etc. ); • to support strategic decision-making with respect to infrastructure investments or the product portfolio. Source: WBCSD, 2000, eco-efficiency Learning Module Life Cycle Management Navigator: 13_PR_PE 4 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? How to apply Outline of PE process: Plan Act Do Check Indicators to assess the Performance are essential. Two well-known guidelines • ISO 14031 “Environmental Performance Evaluation – Guidelines” • WBCSD “Measuring Eco-Efficiency – a guide to reporting company performance ” Life Cycle Management Navigator: 13_PR_PE 5 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? Step 1 - Plan Act • Initial scope: - areas under direct management control; Do Check - aspects caused by activities with high priority by management. • Determine targets for environmental performance • Choose or develop appropriate indicators Life Cycle Management Navigator: 13_PR_PE 6 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? Indicator. . . is something that helps us to understand where we are, which way we are going, and how far we are from where we want to be. A good indicator alerts us to a problem before it gets too bad and helps us recognise what needs to be done to fix the problem (Hart, 1997). Plan Act Do Check Tool to provide information about environmental performance How to select indicators: • prioritise the most significant environmental impacts; • select impacts where the company is able to make a change; • select the most characteristic criteria considering the user. Life Cycle Management Navigator: 13_PR_PE 7 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? WBCSD Indicators Eco-efficiency = Product or Service Value Environmental influence Ba Plan Act Do Check se • be relevant and meaningful with respect to do environment, health and welfare n 8 • inform decision making to improve the performance of Pr the organization inc ipl • recognize the inherent diversity of business es • support benchmarking and monitoring over time • be clearly defined, measurable, transparent and verifiable • be understandable and meaningful to identified stakeholders • focus on areas under direct management control • recognize upstream and downstream aspects of a company’s activities Source: WBCSD, 2000, Measuring eco-efficiency Life Cycle Management Navigator: 13_PR_PE 8 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? WBCSD Indicators Plan A) Generally applicable indicators Act • valid for virtually all business; Do Check • easy to measure; • bear significant cost-saving potential. Examples Energy: tons of coal consumed/unit product Water: m 3 process water extracted from nearby river Raw materials: m 3 raw timber used/unit product Source: WBCSD Life Cycle Management Navigator: 13_PR_PE 9 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? WBCSD Indicators Plan B) Business specific indicators Act • tailor-made for specific company; Do Check • essential in order to get a complete picture; • not less or more important per-se than “generally applicable indicators”. Examples Chemical usage: amount of varnish used per unit product Chemical usage: percentage of water-based varnishes Packaging: tons of packaging used Wood dust: particulates (mg/m 3) concentration indoors Source: WBCSD Life Cycle Management Navigator: 13_PR_PE 10 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? ISO 14031 Indicators Plan Environmental Performance Evaluation Act Do Check EPI Environmental Performance Indicator MPI Management Performance Indicator Life Cycle Management Navigator: 13_PR_PE 11 Source: ISO 14031 OPI Operational Performance Indicator CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? Examples Environmental Performance Indicators (EPI) Plan Act Do Check a) Management Performance Indicator (MPI) • information about management efforts to influence the Environmental Performance • e. g. number of employees trained in environmental programmes b) Operational Performance Indicator (OPI) • information about the EP of the organisation’s operations • e. g. quantity of water per unit product Life Cycle Management Navigator: 13_PR_PE 12 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? Examples Furniture workshop discharging wastewater: Plan Act Do Check • Total amount of specific contaminant (e. g. suspended solids) discharge per year (OPI - audience: local community) • Biological oxygen damand (BOD 5) of wastewater (OPI - audience: authorities) • Change in contaminant discharge per year relative to investments in cleaner technologies (MPI - audience: management, investors) Source: ISO 14031 Life Cycle Management Navigator: 13_PR_PE 13 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? Step 2 - Do Plan Put it into action. . . Data collection Act Do Check Collect data • systematically • use appropriate sources, like - business records (inventory, production, accounting, . . . ); - monitoring and measuring; - reports and studies. Data analysis & conversion Convert data into information Source: ISO 14031 Life Cycle Management Navigator: 13_PR_PE 14 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? Step 2 - Do Plan Put it into action. . . Information assessment Communication Act To indicate progress or deficiencies Do Check • Compare information with EP criteria or previous figures Communicate the findings to relevant stakeholders (see Corporate Environmental Reporting) Source: ISO 14031 Life Cycle Management Navigator: 13_PR_PE 15 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? Steps 3 & 4 - Check & Act Plan Act Do Check For a continuous improvement the EPE • the cost effectiveness and benefits achieved; • the progress in environmental performance; • appropriateness of the environmental criteria and indicators. Life Cycle Management Navigator: 13_PR_PE 16 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation Example The Efficient Entrepreneur Assistant An annual step-by-step process for managing internal environmental aspects of a company Purpose and set-up of the calendar (January) How to get started? (February) Performance areas Energy consumption (March) Materials consumption (April) Water consumption (May) Performan ce Assessme nt Non- product output (June) Reviewing progress (October) Internal and external communication (November) Team Building & Policy Prioritisati on Risk management & prevention (July) Product stewardship (August) Community integration (September) Managem ent of aspects Communicat ion Getting recognition (December) Life Cycle Management Navigator: 13_PR_PE 17 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation The Efficient Entrepreneur Calendar • • • Example Especially for SMEs For systematic evaluation of risks Available: English, French, Spanish, Flemish, German, Turkish, Arabic Planned: Chinese, Italian, Portuguese, Russian About 10, 000 copies distributed world-wide Source: http: //www. efficient-entrepreneur. net/ Life Cycle Management Navigator: 13_PR_PE 18 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? SMART - Sustainability for the Small and Medium Sized Companies committed to Accountability, Responsibility and Transparency Production Enterprises A toolkit enabling SMEs to cope with the sustainable production and consumption challenge Interface: Supply & Demand Households Consumption Life Cycle Management Navigator: 13_PR_PE 19 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? SMART • training (intermediaries & SMEs) • EU awareness raising campaign • Efficient Entrepreneur network • Partners‘ networks (e. g. Cleaner Production Centers) Unlocking SMEs‘ CSR Potential • Banks, large companies Life Cycle Management Navigator: 13_PR_PE 20 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation Manufacture of Fabricated Metal Products Case Study Electroplating unit that performes zinc, nickel, brass and chrome plating Cleaner Production assessment identified a number of pollution problems including è The excessive water use as one of the main problems. • Performance Indicators have been set up, in order to: 1. identify the best saving options within the production process 2. be able to track the changes over time Source: UNEP Life Cycle Management Navigator: 13_PR_PE 21 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation Manufacture of Fabricated Metal Products Case Study Along the five main steps of the facility, 1. polishing 2. cleaning 3. racking 4. metal finishing m 3 Water 5. gilding m 2 of finished surface water consumption is measured in Rinsing (in step 2. & 4. ) turned out to be a major improvement opportunity, by • adding agitation and sprays; • control water use Investments: less that $100 (US) • reduce water use Savings: about $1000 (US) per year Source: UNEP Life Cycle Management Navigator: 13_PR_PE 22 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation in Giradota Case Study Girardota profile: • Location: Antioquia, Colombia • Personnel: 28 • Sector: mining • Production capacity: 450000 m 3/year Main impacts: soil deterioration, water pollution, air emissions, noise pollution, energy consumption and impacts on landscape � • Identification of key indicators: • 35 indicators in the areas of soil, water, air, noise, ecology and landscape • grading system (0 to 5) and weighing factors • total grade shows the company’s status Source: Colombia NCPC Life Cycle Management Navigator: 13_PR_PE 23 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? Environmental Product Declaration (EPD) is a little report or information sheet that. . . communicates the environmental performance of one product or system. . . is LCA based. . . is standardised through ISO 14025/TR. . . is certified by an independent third party Source: www. dantes. info, Imrell, Sanne, 2003, EPD - Key to interpretation Life Cycle Management Navigator: 13_PR_PE 24 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation How? Environmental Product Declaration Common structure of an EPD 1. Programme-related information e. g. Name of EPD programme, registration number, reference to relevant websites 2. Product-related information e. g. Product information, identification according to classification schemes 3. Environmental performance-related information e. g. Emissions of pollutants and their global warming potential, resource use 4. Additional environmental inormation e. g. company information, supply chain management 5. Mandatory statements e. g. omissions of life cycle stages, means of obtaining explanatory materials Source: www. environdec. com Life Cycle Management Navigator: 13_PR_PE 25 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation Environmental Product Declaration Example Company Cork, Italy. . . informs about the environmental performance of their products in an objective, comparable and credible way. . shows the continuous environmental improvement of their products over time and along its value chain. Ex ce rpt fro m EP D Life Cycle Management Navigator: 13_PR_PE 26 Source: www. companycork. it CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME

Performance Evaluation Tips for Action! • Start with a simple, but tailor-made approach. • “Less is more” – collect only data which can be transformed into useful information. • Communicate your findings to management. • Report your improvements to the local community, the financial sector and other interested parties (see tool on Corporte Reporting). Life Cycle Management Navigator: 13_PR_PE 27 CSCP, UNEP, WBCSD, WI, In. WEnt, UEAP ME