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

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 2 Performance Evaluation What is PE? What? 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. Tool which helps companies to measure and evaluate its environmental performance.

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 3 Performance Evaluation Areas of Application Where? 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”? On a more strategic level, PE -helps to benchmark against competitors; -gives guidance on investment decisions.  during the company’s daily operation  strategic decisions

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 4 Performance Evaluation Benefits Why? 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. You can only manage what you know, and you can only know what you measure. Source: WBCSD, 2000, eco-efficiency Learning Module

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

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

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 7 Performance Evaluation Indicator How? 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.  Tool to provide information about environmental performance... 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 Do Check Act

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 8 Performance Evaluation WBCSD Indicators How? Plan Do Check Act Product or Service Value Eco-efficiency = Environmental influence Source: WBCSD, 2000, Measuring eco-efficiency be relevant and meaningful with respect to environment, health and welfare inform decision making to improve the performance of the organization recognize the inherent diversity of business 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 Based on 8 Principles

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 9 Performance Evaluation WBCSD Indicators How? A) Generally applicable indicators valid for virtually all business; 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 Plan Do Check Act

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 10 Performance Evaluation WBCSD Indicators How? B) Business specific indicators tailor-made for specific company; 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 Plan Do Check Act Source: WBCSD

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

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 12 Performance Evaluation Examples How? Plan Do Check Act Plan Do Check Act Environmental Performance Indicators (EPI) 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

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 13 Performance Evaluation Examples How? Furniture workshop discharging wastewater: 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 Plan Do Check Act

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

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

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

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

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 18 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 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:

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

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

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 21 Performance Evaluation Manufacture of Fabricated Metal Products Case Study Electroplating unit that performes zinc, nickel, brass and chrome plating Source: UNEP Cleaner Production assessment identified a number of pollution problems including  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

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 22 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 5. gilding water consumption is measured in m 3 Water m 2 of finished surface Rinsing (in step 2. & 4.) turned out to be a major improvement opportunity, by adding agitation and sprays; control water use reduce water use Source: UNEP Investments: less that $100 (US) Savings: about $1000 (US) per year Investments: less that $100 (US) Savings: about $1000 (US) per year

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 23 Performance Evaluation in Giradota Case Study Girardota profile: Location: Antioquia, Colombia Personnel: 28 Sector: mining Production capacity: m 3 /year 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 Main impacts: soil deterioration, water pollution, air emissions, noise pollution, energy consumption and impacts on landscape Source: Colombia NCPC

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 24 Performance Evaluation Environmental Product Declaration How? Source: Imrell, Sanne, 2003, EPD - Key to interpretation 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 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

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 25 Performance Evaluation Environmental Product Declaration How? Source: 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

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 26 Performance Evaluation Environmental Product Declaration Example Source: 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.... 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. Excerpt from EPD

CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 13_PR_PE 27 Performance Evaluation Tips for Action! Tips 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).