Global Principles and Practices for Hotspots Analysis and Sustainability Information

1. A joint organisation   of UNEP & SETAC" Global Principles and Practices for Hotspots Analysis and Sustainability Information! James A. Fava & Curtis A. Harnanan, thinkstep! Mark Barthel & Claire Kneller, WRAP/PSF !

2. Outline! Overview of Flagship Project 3a! What is Hotspots Analysis! Outcomes of Phase 1! Analysis! Initial insights on methodological framework! What to expect in Phase 2! Future steps (Phase 3)! Q&A and Discussion / Input! 2"

3. A joint organisation   of UNEP & SETAC" Overview of Flagship Project 3a! ‘‘HHoottssppoottss AAnnaallyyssiiss’’!!

4. Ultimately . . .! WWee aarree ddeevveellooppiinngg::!! !  A common methodological framework for sustainability hotspots analysis at different scales; ! !  A guideline for the appropriate use and communication of sustainability information derived from hotspots analysis; ! !  A community of practice on hotspots analysis; and ! !  A range of options to bring together the ﬁndings from existing hotspots studies to provide a richer, global picture of sustainability hotspots in the economy and society.! ! 4" Es#mated comple#on: late 2017

5. What is Hotspots Analysis?! A methodological framework that allows for the rapid assimilation and analysis of a range of information sources, including life cycle based and market information, scientific research, expert opinion and stakeholder concerns. ! ! The outputs from this analysis can then be used to identify potential solutions and prioritize actions around the most significant governance, economic, environmental and/or social sustainability impacts or benefits associated with a specific country, city, industry sector, lifestyle, product portfolio, product category or individual product or service*. ! ! Hotspots analysis is often used as a pre-cursor to developing more detailed or granular sustainability information. ! ! 5" *More recently, hotspots analysis is also being used to assess the impacts and benefits of interven#ons to support the transi#on to more sustainable consump#on paAerns and lifestyles.

6. Overview & Key Phases

7. Status of Hotspots Analysis? ! ➜  Growing number of different scales of application and communications approaches! ➜  No common approach nor accepted guidance on how to translate and apply the results of Hotspots Analysis into meaningful product sustainability information for use by business, governments and other stakeholders. ! ➜  NNeeeedd for an effort to ensure gglloobbaall ccoonnssiisstteennccyy and inter- operability among the various programmes and activities. ! 7"

8. Application of Hotspots Analysis! 8" Pathfinders & pilots Real world product improvement programmes (pilots, working groups, industry implementation) Priority Products Focusing on the products that matter Value chain optimisation and resource efficiency Tesco’ global food loss and waste initiative Sustainability Indexes From domestic appliances to public gardens Water catchment management* Understanding water scarcity hotspots and water resource management *Greenhouses in San Agus#n near Almería, Andalusia, Spain (36°42’ N – 2°44’ W) © Yann Arthus-‐Bertrand / Al#tude

9. A joint organisation   of UNEP & SETAC" Outcomes of Phase 1! FFllaaggsshhiipp PPrroojjeecctt 33aa!!

10. Phase 1: Initial HSA Mapping Study! ➜  Approval & support from UNEP / SETAC !! ➜  OObbjjeeccttiivvee:: !! ➜  To provide an overview of existing hotspots methodologies via literature reviews, expert interviews and stakeholder consultations! ➜  To undertake an analysis of the commonalities and differences in existing hotspots analysis and the reasons behind them! ➜  To assess the application of hotspots analysis at different scales and levels of granularity! ➜  To share the learning from existing studies and initiatives and beneﬁt from proven practice in the development process! ➜  April – December 2014! ! 10"

11. Phase 1: Final Report! 11" Available at: hAp://www.lifecycleini#a#ve.org/wp-‐ content/uploads/2014/12/UNEP-‐Hotspots-‐ Mapping-‐Project-‐Final-‐Report-‐Phase-‐1.pdf

12. Mapping Methodologies! Engaged methodology owners, developers and users! ➜  Identified 44* various methodologies! ➜  Refined results → selected 28 for analysis ! ➜  Further prioritized & selected final 21 for analysis ! 12" Scale of Application Methodology Stakeholder engagement Impact coverage Applicability to SMEs Applicability to Emerging Economies Ease of Use Business Model Approach Public Private Qual. Quant. National EU EIPRO n ¢ ✔ ✔ + $ $ Getting the Numbers Rights nnn ¢ ✔ ✔ ++ $ Global Protocol for Community Scale GHG emissions nnn ¢ ✔ ✔ + $ $ US GSA Supply Chain Hotspots Project n ¢ + $ GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard nnn ¢ ✔ ✔ + $ $ Sector National Cattlemen’s Beef Association Hotspots Analysis nnn ¢¢ ✔ ✔ ++ $ Public Gardens Sustainability Index Hotspots Analysis nnn ¢¢ ¢¢ ✔ ✔ ++ $ Sustainability Accounting Standards Board Materiality Map™ nnn ¢¢ ¢¢ ✔ ++ $ $ "  4 na#onal "  5 sector "  12 product *NOTE: since comple#ng Phase 1 in December 2014 six further methodologies have come to light which will be further inves#gated during Phase 2

13. Methodologies Identiﬁed from Survey! 13"

14. Final Selected Methodologies! NNaattiioonnaall LLeevveell MMeetthhooddoollooggiieess!! ! 1.  EU EIPRO! 2.  Getting the Number Right (GNR)! 3.  Global Protocol for Community-scale GHG emissions ! 4.  US GSA Supply Chain Hotspots Project ! ! ! SSeeccttoorr LLeevveell MMeetthhooddoollooggiieess!! ! 1.  GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standards ! 2.  National Cattlemen’s Beef Association Hotspots Analysis! 3.  Public Gardens Sustainability Index Hotspots Analysis! 4.  Sustainability Accounting Standards Board (SASB) Materiality Map™! 5.  Sustainability Assessment of Food and Agriculture systems (SAFA) tool! ! ! PPrroodduucctt CCaatteeggoorryy LLeevveell MMeetthhooddoollooggiieess!! ! 1.  Association of Home Appliance Manufacturers (AHAM) Hotspots Analysis! 2.  Japanese Carbon Footprint Programme! 3.  Japanese Ecoleaf Programme! 4.  French Grenelle I and II BPX 30-323-0 Product Lifecycle Environmental Impact Quantiﬁcation Guidance Standard! 5.  GHG Protocol Product Life Cycle Accounting and Reporting Standards! 6.  ISO/TS 14067: Greenhouse gases - Carbon footprint of products! 7.  Social Hotspots Database! 8.  Social LCA! 9.  The Sustainability Consortium! 10. WRAPs Product Sustainability Forum! 11. Water Quality Association (WQA) Hotspots Analysis! 14"

15. Summary Analysis! 15"

16. Summary Analysis! 16" Scale of Application Methodology Stakeholder engagement Impact coverage Applicability to SMEs Applicability to Emerging Economies Ease of Use Business Model Approach Public Private Qual. Quant. National EU EIPRO n ¢ ✔ ✔ + $ $ Getting the Numbers Rights nnn ¢ ✔ ✔ ++ $ Global Protocol for Community Scale GHG emissions nnn ¢ ✔ ✔ + $ $ US GSA Supply Chain Hotspots Project n ¢ + $ GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard nnn ¢ ✔ ✔ + $ $ Sector National Cattlemen’s Beef Association Hotspots Analysis nnn ¢¢ ✔ ✔ ++ $ Public Gardens Sustainability Index Hotspots Analysis nnn ¢¢ ¢¢ ✔ ✔ ++ $ Sustainability Accounting Standards Board Materiality Map™ nnn ¢¢ ¢¢ ✔ ++ $ $

17. Summary Analysis! 17" Scale of Application Methodology Stakeholder engagement Impact coverage Applicability to SMEs Applicability to Emerging Economies Ease of Use Business Model Approach Public Private Qual. Quant. Sector Sustainability Assessment of Food and Agriculture systems nnn ¢¢ ¢¢ ✔ ✔ ++ $ Product Association of Home Appliance Manufacturers Hotspots Analysis nnn ¢¢ ¢ ✔ ✔ + $ Japanese Carbon Footprint Programme nnn ¢ ✔ + $ $ Japanese Ecoleaf Programme nnn ¢ ✔ + $ $ French Grenelle I and II BPX 30-‐ 323-‐0 Product Lifecycle Environmental Impact Quantification Guidance Standard nnn ¢ ✔ ✔ + $ $

18. Summary Analysis! 18" Scale of Application Methodology Stakeholder engagement Impact coverage Applicability to SMEs Applicability to Emerging Economies Ease of Use Business Model Approach Public Private Qual. Quant. GHG Protocol Product Life Cycle Standards nnn ¢ ✔ ✔ + $ $ Product Sustainability Forum nnn ¢¢ ✔ ✔ + $ $ Social Hotspots Database nnn ¢ ✔ ✔ ++ $ Product Social LCA nn ¢¢ ✔ ++ $ $ The Sustainability Consortium nnn ¢¢ ✔ ✔ + $ ISO/TS 14067: 2013 -‐ Carbon footprint of products nnn ¢ ✔ ✔ + $ $ Water Quality Association (WQA) Hotspots Analysis nnn ¢¢ ¢ ✔ ✔ + $ $

19. Commonalities! ➜  All of the key methodologies engage several stakeholders in their development;! ➜  Most methodologies include environmental impacts;! ➜  All methodologies utilize to some degree, a quantitative approach. A few only use qualitative elements;! ➜  Most approaches address multiple impacts.! 19"

20. Differences! ➜  National:! ➜  All utilize a quantitative approach to address environmental impacts! ➜  Tend to use input/output analysis or materials ﬂows analysis! ➜  Sector & Product:! ➜  Tend to be more diverse in the impacts and issues they address, as well as in the use of more qualitative elements! ➜  Tend to focus on life cycle approaches or ‘beyond LCA’ approaches! ➜  City-Scale: one methodology has speciﬁcally developed for use in cities*, others could be adapted for use at this scale! ➜  Hybrid (public & private) funding appears to be dominant among the methodologies, ! ➜  No common funding model that can be attributed to any of the three methodology levels! ! 20" *Global Protocol for Community-‐scale GHG emissions

21. General Observations! ➜  Growing number of methodologies “move beyond LCA” ! ➜  Development stems from a various organisations & linked to a specific objective! ➜  All engage a wide stakeholder base ! ➜  Majority are focussed on multiple issues, with most covering a core set of environmental issues, though issue-specific methods also exist ! ➜  While the hybrid funding appears to be dominant, there is no common model applied at a national, sector, or product level.! ➜  Few incorporate financial data on the costs and benefits of addressing hotspots. ! ➜  Links to activity to reduce the impact of hotspots are sparse. ! ! 21"

22. Key Stakeholder Insights! ➜  Support ‘Beyond LCA’ approach ! ➜  Clearly identify goal & scope ! ➜  Build stakeholder credibility & use a phased approach! ➜  Keep hotspots actionable & manageable! ➜  Prioritize to meet goals for addressing hotspots! ➜  Make results clear & intuitive using visualization! ➜  Periodically review & revise HSA analysis! ➜  Clearly communicate uncertainty! ➜  Develop case studies & examples to support use! ! 22"

23. Methodological Framework: Initial Insight! Define Goal & Scope Gather data, seek expert insight Iden#fy & validate hotspots Iden#fy & priori#ze ac#ons Review ini#al findings with key stakeholders & experts Present & validate findings Iden#fy implementa#on gaps & recommenda#ons Review and revisit hotspots analysis 23"

24. What to Expect in Phase 2! ➜  Wider stakeholder engagement and consultation process! ➜  Two one-day facilitated rapid prototyping workshops for sector and product-level hotspots analysis modules (Q1 – 2016)! ➜  Interested in participating?! ➜  Three regional webinars (Q1 – 2016) ! ➜  Interested in participating?! ➜  Reﬁned methodological framework, including sector and product category-level guidance based on expert input from workshops & webinars! ➜  Guidance on the appropriate use and communication of sustainability information! 24"

25. What to Expect in Phase 2!

26. Guidelines on use and communication! ➜  Appropriateness of how sustainability information used and communicated will be dependent on scope/goals of study, e.g.:! ➜  Availability of underpinning data and information; and depth and granularity of research ﬁndings used to identify hotspots; ! ➜  Quality and consistency of expert opinion and judgement and level of agreement reached; ! ➜  The level and inclusiveness of stakeholder engagement and degree to which stakeholder concerns have been addressed; ! ➜  The materiality / relevance of the sustainability information to be used or communicated in the context of identiﬁed sustainability hotspots; and! ➜  How and what this sustainability information is to be applied to in order to provide information to consumers/stakeholders! 26"

27. Future Steps (Phase 3)! ➜  Tailoring of Phase 2 deliverables for speciﬁc applications:! ➜  UNEP 10YFP tourism sector guidance! ➜  Undertake a series of practical piloting projects to road-test deliverables! ➜  City-scale pilot (Quito, Equador)! ➜  UNEP 10YFP Better By Design ﬂagship project! ➜  Bringing together the evidence from ! different studies and initiatives ! under the auspices of the UNEP 10YFP ! on SCP! 27"

28. Questions! 28" Interested in par,cipa,ng or learning more? Please contact: Jim Fava ( jim.fava@thinkstep.com) Mark Barthel (Mark.Barthel@wrap.org.uk)

29. Questions to prompt discussion! ➜  What additional value do/can ‘beyond LCA’ approaches to Hotspots Analysis bring? ! ➜  At what level(s) of application of hotspots analysis does the ‘beyond LCA’ provide the greatest benefit? ! ➜  Are there any applications where the use of a ‘beyond LCA’ approach is of low value or should not be encouraged?! ➜  What issues and topics should be covered in the principles and practices for hotspots analysis and how could they best be applied (bearing in mind they will need to be flexible enough to accommodate different scales of application (e.g. national, city, sector, product category, lifestyles)? ! ➜  In what format and/or information should the final guidance (i.e., principles and practices for hotspots analysis) be provided in order to optimize its utility (and broadly encourage its adoption) among all levels of users?! 29"

30. Thank you for your attention!! ! SSTTAAYY UUPP--TTOO--DDAATTEE OONN !! LLIIFFEE CCYYCCLLEE IINNIITTIIAATTIIVVEE AACCTTIIVVIITTIIEESS:! ! Web: www.lifecycleinitiative.org! Email: info@lifecycleinitiative.org! Twitter: @LC_Initiative! ! We’re also on LinkedIn and Facebook and you can subscribe to our newsletter LC Net on our website!! ! 30"

Global Principles and Practices for Hotspots Analysis and Sustainability Information

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Global Principles and Practices for Hotspots Analysis and Sustainability Information

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