1 Environment and Business, Part II Environmental Benchmarking Prof. Dr. Ir. Ab Stevels Chair of Applied EcoDesign Design for Sustainability Dept. Design Engineering, School of Industrial Design Delft University of Technology

September 16, Outline 1.Introduction 2.Why environmental benchmarking? 3.Characteristics, issues and procedures 4.To what items to pay attention to? 5.Examples 6.Conclusions

September 16, Improvement analysis, industry approach Address environmental issues which you can influence yourself (internal issues) Get facts and organize these according to a chosen benchmark procedure Use information to generate and prioritize design actions against external issues Check feasibility Implement in eco(design) specifications and targets

September 16, Improvement analysis, scientific approach Do Life Cycle Analysis, holistic approach Select internal and external improvement options Start stakeholder discussion Come to solutions Implement in programme

September 16, The Environmental Benchmark Method -Thee parts -Well documented -Yields reproducible results

September 16, Why environmental benchmarking of products? Know what you are talking about. Know where you stand with respect to demands for customers, legislation. Find out where you can save money. Know where you stand with respect to competition Be able to set priorities and to integrate environment into product development process.

September 16, Lessons learned from Benchmarking Tremendous awareness I never realized that … my competitor is better in … Big differences for ‘new’ products also for products at end of learning curve Improvement potential no brand scores consistently best All focal area’s affected Strong basis for improvement / brainstorm

September 16, Contributions of benchmarking to basic processes Creating awareness: What is this all about? managerial & technical Making plans, programs support: Where do we stand? Where do we want to go? strategy & roadmap Eco-design: How to realize? specification/ targets five focal areas: energy, packaging, materials, substances, end-of life in the market Supporting/ exploitation: How to enhance business? communication, marketing & sales

September 16, Choice of products -In Philips context: choice of Green Flagships Candidates -Select your own product -Select products from competition -Best commercial competitors -Brands with good expected environmental performance -Be certain of similarity of characteristics regarding: -Functionality -Commercial availability -Price/performance ratio -Size -Product generation

September 16, Characteristics of Benchmarking Comparison with competition; relative not absolute Technical language and tangible units instead of environmental indicators: W, seconds, kg, %, … Learning by doing; do it yourself – visible. Easy to integrate into business process; environmental specification of products

September 16, Benchmark Issues Life cycle perspective defining product system boundaries (Example : cellphone or also loader?) items to be considered (Example: all focal area’s or just energy consumption) Functionality or embodiment? Example: ‘1 litre orange juice’ or ‘fruit juicer’ Embodiment as such Example: CD Radio Cassette Recorders have almost, but never completely identical performance specification/functionality

September 16, Benchmark procedure, I (example) 1.Starting points and goals 2.Functional description and analysis functionality product system boundaries basic input-output diagram 3.Energy analysis power consumption of subassemblies and PWBs -efficiency -4.Mechanical description and analysis -structure chart -materials application -assembly/disassembly

September 16, Benchmark procedure, II (example) 5.Environmental description and analysis application checklist to count, measure, calculate chemical content of product Eco-indicator, Life Cycle Analysis 6.Environmental cost analysis cost price breakdown life cycle cost / cost of ownership calculation

September 16, Benchmark procedure, III (example) 7.Product positioning with respect to customer demands with respect to legal demands with respect to competition 8.Analysis, Assessment Information groups Sensitivity: if …. Would change, then …. 9.Preparing imput for business processes roadmaps targets, specifications

September 16, Measurement in five Focal Areas Energy kWh based on assumption of consumer behaviour Weight kg, number (of wires, components, connections) Packaging kg, volume, ratio’s Hazardous substances chemical content procedure, chemical analysis Recyclability Material Recycling Efficiency, disassembly time

September 16, Life cycle check Environmental calculation in life cycle stages Raw Materials Manufacturing Packaging and transport Use Disposal

September 16, Energy Power consumption use stand-by off mode Battery and adapter application Alternative energy sources Consumer usage scenario calculation

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September 16, Weight Per (sub) assembly : Encasing Picture tube, drives (if present) Electronics (PWB, display, batteries, etc.) Components on PWB (type and number) Accessories (adapter, RCU, etc.) Functional parts (speakers, antenna, etc.) Wiring and connectors (main cord, etc.)

September 16, Weight Per materials type Plastics of various types Iron Aluminum Copper Non-Ferro (precious metals)

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September 16, Packaging Packaging materials (documentation, box, buffer and bags) Product weight and volume Box volume Number of materials Presence of recycled cardboard

September 16, Packaging ratio’s Weight packaging/ weight product Volume packed product/ volume product

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September 16, Potentially toxic substances Presence of flame retardants and additives Presence of heavy metals Presence of PVC Presence and types of coatings Lead content of solders Chemical content % of released components/materials present number of rejected components (banned substances )

September 16, Recyclability Plastics application (e.g. mono-materials, halogenated flame retardant) Connection type Disassembly time Material Recycling Efficiency Costs and revenues of end-of-life treatment

September 16, Disassembly Benchmark (TV’s) Gross time (seconds)TV1TV2TV3TV4TV5 Getting ready Mains cord/plug Unscrew back cover Clean and sort back cover Take out and sort PWB Take out and sort speakers Deflection unit Get CRT out Clean and sort CRT Clean and sort front covers Total

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September 16, Life cycle check, I Should set the environmental priority as part of the overall business priority. Should be scientific proof of environmental communication to customers. Should suit to other audiences (authorities, consumer organisations, green pressure groups, science world) Example: Method Eco Indicator ’95 Software Eco Scan Database Philips CFT (proprietary) Product data From benchmark Effect Product data (kg, kWh, …)

September 16, Life Cycle Check, II

September 16, Benchmarking at Philips Consumer Electronics It is the core of Philips Consumer Electronics ecodesign program Is mandatory for all product groups and business units Functions awareness roadmapping brainstorming new product specifications qualifying for “Green Flagship”

September 16, It is worthwhile to go environmental benchmarking. Example : EISA Green Awards at the IFA EISA is the European Imaging and Sound Association; Members are the 60 leading magazines in Audio and Video -Awards for all product categories shown at the IFA; selection by EISA panels -Green Awards as of 2005 (TV) and 2009 (cell phones); measurements and proposal for winner by DUT Delft (Netherlands) and NTNU (Norway)

September 16, Weight factors for the Evaluation (Scores are on a point scale) TV phone Energy (W, user scenarios) 5 4 Materials (weight x ecopoints) 2 4 Packaging (weight, volume) 1 1 Substances( incl. knock out) 1 1 Disassembly/Product Architecture 2 1 Bonus points for special items

September 16, Gap between best and worst score Item TV Phone Energy 38% 80% Weight (total) 20% 64% precious metal content NA 62% copper content NA 86% Packaging volume 22% 84% Packaging weight 8% 98% Toxics 40% 58% Good News : average figures decrease over the years !!

September 16, Conclusions Benchmarking is an environmental “gold-mine” facts creativity inspiration learning for free Practitioners do not need to go to the environmental “language school” Can have big impact on product creation process