1. www.sto.no  STØ Environmental Performance Indicators and Strategy From LCI data for LWA to indicators for Environmental Management Anne Rønning STØ

2. www.sto.no  STØ National and international authorities  National requirements for reduction of climate gas emissions, which may lead to considerable investments and increased manufacturing cost.  Introduction of a national and international system for climate gas trading  A radical increase in landfill waste costs (e.g. for waste from building demolition), demands put on the different manufacturing branches to design and operate recycling systems for waste after end use, as well as a requirement for a certain, minimum share of recycled material in new products. A radical increase of prices for fossil energy resources and electric energy.

3. www.sto.no  STØ Why use environmental indicators for decision support Systematic work for –changing of the energy mix –more energy- and material efficient products –change of the product mix and material composition of products may prevent large increases in manufacturing costs for companies in a 5-10 year perspective. The introduction of environmental indicators in the various decision situations may become an efficient tool to: –plan –follow-up –control this company performance in these areas.

4. www.sto.no  STØ Deciding what to measure The challenge is to decide upon the most important parameters to be prioritised and in which form these should be expressed.

5. www.sto.no  STØ When to use EPIs For planning, goal-setting and follow-up on a strategic level For planning, goal-setting and follow-up on an operational level External communication

6. www.sto.no  STØ When to use EPIs On a strategic level - Effectiveness indicators –do the right thing On a operational level - Efficiency indicators – do it correctly

7. www.sto.no  STØ Type of indicators - how are they expressed

8. www.sto.no  STØ Example of effectiveness indicator

9. www.sto.no  STØ Example of effectiveness indicator

10. www.sto.no  STØ Use of strategy matrix -Making Product 1 better, e.g. by selecting a substitute material or choosing another supplier (with a better environmental profile); -Making Product 2 better, e.g. by making the manufacturing process more energy efficient and converting to a less fossil-dependent energy mix.

11. www.sto.no  STØ Example of efficiency indicator

12. www.sto.no  STØ Delegating responsibility; linking decisions and consequenses everyone should be able to see the effect on the environment resulting from the decisions they make –breaking into a cause/effect chain

13. www.sto.no  STØ Delegating responsibility; linking decisions and consequenses

14. www.sto.no  STØ Delegating responsibility; linking decisions and consequenses In the EMS - make a close connection between the significant environmental aspects, and the functions responsible for continuous environmental improvement  how should the indicator be expressed  how often should it be reported and to whom  who is responsible for following up

15. www.sto.no  STØ Not just reporting

16. www.sto.no  STØ EPI as a part of EMS

17. www.sto.no  STØ Procedures for reporting and managing

18. www.sto.no  STØ The greenhouse gas protocol - a corporate accounting and reporting standard World Business Council for Sustainable Development (WBCSD) and World Resources Institute (WRI) suggested this standard is used as the common, internationally accepted system for accounting and reporting

19. www.sto.no  STØ The greenhouse gas protocol - a corporate accounting and reporting standard

20. www.sto.no  STØ Scope 1 - Direct GHG emissions accounts for direct GHG emissions from sources that are owned or controlled by the reporting company. production of electricity, heat, or steam physical or chemical processing transportation of materials, products, waste, and employees, fugitive emissions: intentional or unintentional releases such as: equipment leaks from joints, seals; methane emissions from coal mines; HFC emissions during the use of air conditioning equipment; and CH 4 leakages from gas

21. www.sto.no  STØ Scope 2 - GHG emissions from imports of electricity, heat, or steam accounts for indirect emissions associated with the generation of imported/purchased electricity, heat, or steam

22. www.sto.no  STØ Scope 3 - Other indirect GHG emissions Indirect emissions that are a consequence of the activities of the reporting company –employee business travel –transportation if products, materials and waste –outsourced activities, contract manufacturing –emissions from the use and end-of-life phases of products and services produced by the reporting company –employees commuting to and from work –production of imported materials

23. www.sto.no  STØ The GHG Protocol recommends that companies account for and report scopes 1 and 2 at a minimum.

24. www.sto.no  STØ CO 2 -trading system EU-countries –expected to participate in the initial phase EU trading system between 2005-07 –CO 2 quotas will in this period probably be free based on a nationally selected reference year from 1990-2000 Non-EU countries (Norway) –Leca must participate in the Norwegian trading system during the period 2005-07. –Quotas corresponding to 80% of 1990 emissions will be free

25. www.sto.no  STØ Conclusions Implementation of EPI on all level in organisation is vital –Strategic indicators few in all levels but operational indicator can be many and different in each level. Link to EMS important. Not only a reporting system – but a tool on strategic and operational level! CO 2 trading demands focus on this issue – EPI can be the tool to do that in the whole organisation. GHG emission based on the same data as EPI. Again a tool to keep this issue in focus