Accounting & communicating emission reductions enabled by green products

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An increasing number of companies position their products in the market as enablers of emission reductions. For a successful market introduction of such products, it is essential to communicate emission reductions in a credible and comparable way. Methodologies, based on Life Cycle Assessment, have been developed by individual companies and at sector level. This presentation discusses a number of methodological issues, inventoried by WWF, Ecofys, Utrecht University and a number of leading companies. It was held by Annemarie Kerkhof, Senior Consultant Supply Chains at Ecofys, during the Life Cycle Management Conference (LCM) in Gothenburg, Sweden, on 27 August 2013.

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Accounting & communicating emission reductions enabled by green products

  1. 1. Annemarie Kerkhof, Vincent Hoen & Giel Linthorst 27/08/2013 Accounting and communicating emission reductions enabled by green product portfolios
  2. 2. © ECOFYS | | Avoided emissions Scope 1, 2 & 3 Activities of companies to reduce their emissions 27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst Company Emission reduction at the facilities of the company itself Emission reduction in the company’s value chain Emission reduction enabled by green product portfolios Low-carbon economy
  3. 3. © ECOFYS | | Use What are avoided emissions? 27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst Product X Material acquisition Production End-of-life Material acquisition UseProduction End-of-life Product A Emission reduction enabled by product X Company A Solution provider
  4. 4. © ECOFYS | | Use Example: Fuel-efficient car tyres 27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst Additive for car tires Material acquisition Production End-of-life Material acquisition UseProduction End-of-life Car Emission reduction enabled by chemical additive Car manufacturer Chemical company
  5. 5. © ECOFYS | | Why communicating about avoided emissions? 27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst Use Product X Material acquisition Production End-of-life Material acquisition UseProduction End-of-life Product A Company A Solution provider Benefits of communicating avoided emissions • Marketing of products. Emission savings (and cost savings) is a feature of the product in addition to quality and price • Differentiate from competitors by communicating the total amount of avoided emissions related to the company’s green product portfolio • Raising awareness at value chain partners and stakeholders, like policy makers • Engage with NGO’s, e.g. avoided emissions is one of the criteria in the WWF Climate Savers Program Emission reduction enabled by product X
  6. 6. © ECOFYS | | How to calculate avoided emissions? 27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst Use Product X Material acquisition Production End-of-life Material acquisition UseProduction End-of-life Product A Emission reduction enabled by product X Company A Calculating avoided emissions • Credibility of results is highly important • Methodologies/guidelines have been developed: ICT (GeSI) Chemical sector (WBCSD/ICCA) Individual companies Solution provider
  7. 7. © ECOFYS | | Methodological challenges > How to select a baseline? > How to distribute avoided emissions along the value chain? > Inclusion of multiple environmental impacts needed? > Lack of an international standard 27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
  8. 8. © ECOFYS | | Use How to select a baseline? 27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst Product X Material acquisition Production End-of-life Material acquisition UseProduction End-of-life Product A Company A Solution provider Use Material acquisition Production End-of-lifeBaseline Baseline: • Old product • Product with same function in the market with high sales volume • Industry average
  9. 9. © ECOFYS | | Use How to distribute avoided emissions? 27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst Additive for car tires Material acquisition Production End-of-life Material acquisition UseProduction End-of-life Car Car manufacturer Chemical company Car tires Material acquisition UseProduction End-of-life Tire manufacturer How to allocate avoided emissions to value chain partners? Important to avoid double counting.
  10. 10. © ECOFYS | | Focus on reducing problems Focus on solutions Reducing impacts and focusing on solutions 27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst
  11. 11. © ECOFYS | | Contact details Ecofys Netherlands B.V. Kanaalweg 15G 3526 KL Utrecht The Netherlands Annemarie Kerkhof Senior Consultant T: +31 (0)30 662-3047 E: a.kerkhof@ecofys.com I: www.ecofys.com 27/08/2013 Annemarie Kerkhof, Vincent Hoen & Giel Linthorst

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