Units 5 & 6

History of Sustainable Management

Strategies

Historical pattern of Sustainable Time and

Business management strategies Space
Business-as-usual
Compliance with
regulation Process oriented
Pollution prevention
EIA, Energy audits, Envir.
audits

Extended product
responsability
Eco-efficiency
Product oriented
Design for Environment
Life Cycle Assessment
LCA

Industrial Ecology
Creating loop closing
industrial ecosystems Systems Oriented
Promoting waste exchanges
Cascading energy utilization
Circular Economy
Corporate Sustainability
Sustainability

Stakeholders

Integrated Systems

EMS Implementation
Design for the environment

Product Stewardship

Zero Discharge

Pollution prevention

Compliance Audits

End-Of-pipe thinking

Non compliance
 Overall Product Management
Strategies to attain Sustainability

• 1.Dematerialization
• 2.Life Cycle Management
• 3.Product Service Systems
• 4.The Triple Bottom Line Concept
• 5.Policies
• 6.Reporting
• 7.Education and training
 1.Dematerialization

• Addressing needs and functionality rather

than the product alone
• Tracking throughput of materials and energy
in industrial and consumption processes
• Major increase in resource productivity
 2.Life Cycle Management

Life cycle thinking provides a holistic

framework taking the entire system of
Return to the
environment
a product, process or service into
Consumption/
Obsolescence Society’s Need account, enabling us to make realistic
choices for the longer term taking
Use for Products and
Re-Use Services

multiple factors into account.

Manufac-
turing Recy-
cling
Exploration
• Life cycle thinking needs tools to make it
Refining Extraction practical to regular activities and
decisions.
3.Product Service Systems:
Definition
“A Product-Service System can be defined as the result of an
innovation strategy, shifting the business focus from designing
and selling physical products only, to selling a system of
products and services which are jointly capable of fulfilling
specific client demands.”
(UNEP)
Three main approaches:
• Services providing added value to the product life cycle
• Services providing “final results” for customers
• Services providing “enabling platforms” for customers
 Sustainable Procurement
Sustainable procurement is the process in which organisations buy
supplies or services by taking into account:
• the best value for money considerations such as, price, quality,
availability, functionality, etc.;
• environmental aspects ("green procurement": the effects on the
environment that the product and/or service has over its whole
lifecycle, from cradle to the cradle);
• the entire Life Cycle of products;
• social aspects: effects on issues such as poverty eradication,
international equity in the distribution of resources, labour
conditions, human rights.
 4.The Triple Bottom Line
Concept
Three Pillars of Sustainable
Society
Development Environment

Sustainable
Development

Economy
 5.Policies and instruments

• Integrated Product Policy

• Policy instruments to encourage Sustainable Consumption and
Production
 Integrated Product Policy (IPP)

• Life-Cycle Thinking – cumulative environmental impacts - from the

“cradle to the grave/cradle”.
• Working with the market – setting incentives so that the market
moves in a more sustainable direction by encouraging the supply and
demand of greener products.
• Stakeholder Involvement – it aims to encourage all those who come
into contact with the product
• Continuous Improvement – improvements can often be made to
decrease a product’s environmental impacts
• A Variety of Policy Instruments – the IPP approach requires a number
of different instruments because there are such a variety of products
and different stakeholders.
 Policy instruments

 Regulatory: standards, norms, EPR

(environmental performance reviews), labelling,
(enforcement)
 Economic instruments: taxes, subsidies, credits,
financial incentives, etc.
 Social: awareness raising, education, information,
voluntary initiatives
 Others: indicators, green accounting...
6. Reporting Practices in the
Industries
• Environmental Policy statement
• Environmental Impact assessment
• Emergency preparedness
• Environmental Statements
• Environmental communication
• Environmental Public relations
• ESG
 Procedural tools to achieve
sustainable business management
• Environmental Management Systems
• Environmental Audit
• Eco-design (P2/CP)
• Environmental Performance Review (E P R)
• Environmental Impact Assessment (EIA)
• Total Quality Environmental Management (TQEM)
Analytical tools to achieve sustainable business
management
• Life Cycle Analysis (LCA)
• Material Input per Unit of Service (MIPS)
• Environmental Risk Analysis (ERA)
• Material Flow Accounting (MFA)
• Cumulative Energy Requirements Analysis (CERA)
• Environmental Input-Output Analysis (IOA)
• Life Cycle Costing (LCC)
• Total cost accounting (TCA)
• Cost-Benefit Analysis (CBA)
• Matrices
• Checklists
 Life Cycle Analysis
The Life cycle concept (ISO 14040)
Industrial systems are comprised of
interdependent processes and activities, requiring
a systems approach for considering technology
from a “cradle-to-grave/cradle” perspective.

The Environment
Inputs The Outputs
Industrial
System
 Life Cycle Analysis

The Life cycle concept

LCA is a holistic analytical technique for
assessing the environmental effects
associated with a product, process, or
activity.
• System-wide, multi-media
perspective
• Functional unit accounting
system
• Comparative assessment of
relative or functional unit
differences
 Life Cycle Analysis

General Scope of LCA

Inputs Life-Cycle Stages Outputs

Raw Materials Water

Effluents
Extraction/Processing
Airborne
Energy Emissions
Product Manufacturing
Solid
Product Use/Reuse Wastes
Raw
Materials Maintenance and Repair Products

EOL Disposition
Co-
Boundary Products
source:
 Life Cycle Analysis
The Life Cycle
Assessment Framework

Direct applications
Goal & scope
definition

Interpretati
Product development
Inventory ¨ Strategic Planning
Analysis ¨ Public policy making
¨ Marketing
¨ Other

on
Impact
Assessmen
t
source:
 Life Cycle Analysis
Advantages of LCA
• Supports decision-making for product/production systems with
scientific data and competence
• Identifies opportunities of improvement
• Identifies key impacts and life-cycle stages of system
• Improves marketability of product (ecolabelling, environmental
claim, product declaration)
• Identifies trade offs and information gaps
• Results in cost reductions, enhanced public image, competitive
advantages, performance, productivity and profits
• Helps companies to adopt a remanufacture approach to reduce
the resource use and cost
• Provides guidance towards optimizing the actual technology
implementation by pinpointing process steps with high
environmental impact
 Life Cycle Analysis
Limitations of LCA
• Availability and quality of life-cycle inventory data
• Uncertainties in the inventory and in the impact
assessment methodology
• Impossible to assess the quality of results due to its
complexity
• Differences in LCA problem formulation due to
differences in values
• High cost associated with a comprehensive LCA
• Practical difficulty in carrying out detailed life-
cycle inventories and also to translate the results
into appropriate actions
• Time consuming and complex nature of LCA