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  • 1. Green Products Green Products (Life Cycle Thinking to  Green Procurements) Shantanu Roy shantanu.roy@emcentre.com How much Green is  Green 2 shantanu.roy@emcentre.com 1
  • 2. Green Products How to define ‘Green’? • Many definitions • Also self‐defined by producers • Some use ecolabels Compliance Leanness in  use of  resources Do No  Harm 3 How much ‘Green’ is ‘Green’? • Products and services – That are environmentally friendly • Environmentally friendly relative to those available – Have lesser / reduced impact on human health and  environment than other product that perform similar  function • Behind every product there’s a ‘past’ and a ‘future’ – The life cycle 4 shantanu.roy@emcentre.com 2
  • 3. Green Products 5 Leather production Chromium compounds Metal finishing Acid wastes and heavy metals Plastic production Plastic wastes Iron/Steel Production Slags Paintings Paint sludges & solvents Aluminum Production Slags Rubber production Rubber wastes shantanu.roy@emcentre.com Tooling & machining Cutting oils and emulsions 6 3
  • 4. Green Products What is Green Products/Services? • Products/Services* that – Are More environmentally friendly relative to other products in the  same category . – Have lesser / reduced impact on human health and environment than  other product that perform similar function Green products / services would typically display all or some of the following characteristics; • conservation of energy and water • minimized generation of waste and releases of pollutants or emissions • be recyclable or themselves be made from recycled materials; and • use energy from renewable sources. *United Nations Environment Programme 7 What is Green Products/Services? Any product which is made, used or disposed  of in a way that significantly reduces the harm  it would otherwise cause to the environment,  can be categorized as Green product 8 shantanu.roy@emcentre.com 4
  • 5. Green Products Is a plastic bag ‘greener’ than a paper bag? 9 10 shantanu.roy@emcentre.com 5
  • 6. Green Products Life Cycle considerations 11 12 shantanu.roy@emcentre.com 6
  • 7. Green Products The way we design, make and use things right now has a  measureable effect on the earth  Means a greater effect on the future… The choices we make today affect  how we live tomorrow er products!!! And that’s why we need green ^ 13 Green Products  LIFE CYCLE ANALYSIS AND COSTING 14 shantanu.roy@emcentre.com 7
  • 8. Green Products Understanding Consumption & Production Use of natural resources Industry Products Recycled waste products Consumers / people Polluted environment 15 Need of the Hour: Decoupling of Economic Growth from Environmental Degradation Quality of life Change of production techniques Economic growth Change of consumption patterns Use of natural resources Wuppertal Institute 16 shantanu.roy@emcentre.com 8
  • 9. Green Products The need in the Product context • Efficient management of resources at  all stages of value chain • Less use of toxics in production • Better product performance during  use – lower resource consumption,  longer life 17 Life Cycle of a product Packaging & Distribution Design & Manufacturing Use & maintenance Recycling & Disposal Extraction & Processing 18 shantanu.roy@emcentre.com 9
  • 10. Green Products Life Cycle thinking • Company creates impacts not only through its own  processes but along the life cycle of a product, and taking  action • Shift in the conventional thinking! • Greening the supply chain • Life Cycle – from raw material  extraction to final disposal and/or  recycling!  • Extended Producer’s Responsibility 19 Life Cycle thinking • Includes environmental,  social, and economic impact  of product • Aims to reduce product‘s  resource use and emissions • Aims to improve product‘s  socio‐economic  performance Learning about the  environmental  performance of  products and services Minimizing  production and  regulatory costs Minimizing  environmental and  human health  damage Understanding trade‐ offs between  multiple impact  categories  and  product phases Supporting equitable  economic  distribution and  profitable operations  20 shantanu.roy@emcentre.com 10
  • 11. Green Products LCA – Key elements Calculating the  load • Identifying and quantifying env.  loads involved – resources used  and emissions/wastes released Evaluating the  impact • Assessing and evaluating  potential env. impacts  of these  loads Assessing  opportunities for  Environmental  Improvement • Assessing opportunities during  decision making process to bring  about env improvements • LCA is a method that  considers energy and raw  material consumption,  different types of  emissions and other  important factors related  to a specific product’s  entire life cycle from an  environmental point of  view. 21 Life Cycle of Jeans Cultivation of Cotton in Country A Transport Processing  at the spinning mill  in Country B  Jeans manufacturing  in Country C  NATURE Dumping or Recycling  Waste Collection  Transport Transport Marketing and Sales  in Country D  Collection by  the second‐hand shop for re‐use  Transport Use by  Source:  the Consumers  Source: UNEP, Wuppertal Institute shantanu.roy@emcentre.com 11
  • 12. Green Products LCA is complex!!! • Complex supply chain • Lack of customised data bases • Cost of LCA of a product 23 LIFE CYCLE COSTING shantanu.roy@emcentre.com 12
  • 13. Green Products Life Cycle Costing (LCC) • Decision making tool • Instrumental to Life Cycle Management is Life Cycle Costing • The assessment of “cost” should consider all costs throughout  the life‐cycle ‐ purchase price, usage costs (energy/water  consumption, maintenance), and disposal costs "... a technique which enables comparative cost assessments to be  made over a specified period of time, taking into account all  relevant economic factors both in terms of initial capital costs and  future operational costs" (BS 15686‐1, 2000; p.28) 25 Use of LCC in decision making Selecting the alternative which optimizes both environmental  and economic considerations Source: The Econo‐environmental  Return; Gontran Bage, Rejean Sampson shantanu.roy@emcentre.com 13
  • 14. Green Products Elements of LCC Research &  development  cost Manufacturing  cost Packaging &  distribution  cost Recycling &  Disposal  cost Operation and  maintenance  support cost 27 Green product, if truly green, must cost less, if accounted in a life cycle perspective. 28 shantanu.roy@emcentre.com 14
  • 15. Green Products Reasons why prices are high? Small Market Size Cost of recycling more due  to disproportionate costs of  reverse logistics and often  due to perverse pricing of  resources Economy with less  incentives for  manufacturers/producers Production costs high.  Produced as ‘boutique  items’(small quantities);  material conversion  efficiency high Compliance across  supply chains Use of frontier technologies  yet to be commercialized See no one  wants my  product. I  invested so  much!! Manufacturer 29 Life cycle costs and benefits are unevenly shared and are often hidden Greener alternatives use less  toxic materials;  lower costs  during use and disposal 30 shantanu.roy@emcentre.com 15
  • 16. Green Products Green Products GREEN  PROCUREMENT Principles of Green Purchasing 1. Consider whether a product is needed  before purchasing it or not.  2. Purchase a product considering the  various environmental impacts over its  life cycle ‐ from extraction of raw  materials to disposal.  3. Select suppliers who make a conscious  efforts to care for the environment.  4. Collect environmental information on  products and suppliers.  5. Support Greening of your supply chain Environmental issues to consider • Low energy • Longer life • Locally produced • Low pollution • Recycled contents • Packaging • … 32 shantanu.roy@emcentre.com 16
  • 17. Green Products Identifying Green Products • Eco‐labels • Self declared ‘greenness’ 33 Eco‐labels • Criteria span across the life cycle • Multi attribute • Set criteria for product categories • Criteria define what makes a greener  product 34 shantanu.roy@emcentre.com 17
  • 18. Green Products Sometimes, greenness is defined upon a  single criterion • Single‐attribute labels 35 Self declared ‘greenness’ • Not awarded by an independent  authority • Developed internally by companies • Take the form of a declaration, a  logo, a commercial, etc.  36 shantanu.roy@emcentre.com 18
  • 19. Green Products Some key requirements as per GPNI • • • • • • • • Compliance to environmental regulations Resource conservation & efficiency Exclusions & preferences based on LCA Environmental protection & conservation of  biodiversity Reporting & responsible disclosure Biodegradability & recyclability Implementing EMS Social Inclusions 37 We don’t have all the answers… Just as we all share this world, we share the journey  through it.   Working together, we can leave it a better place. Each of us brings our own shade of green to the effort. Together, we can make it beautiful. Thank you shantanu.roy@emcentre.com 19