Data driven sustainable food purchasing
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Autor: Clayton Heinrich, Master of Science, University of California,
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Data driven sustainable food purchasing
- 1. Data Driven Sustainable Food Purchasing An Economic Input-Output Life Cycle Assessment case study applying the Comprehensive Environmental Data Archive (CEDA) Clayton Heinrich Mineral and Energy Economy Research Institute of the Polish Academy of Sciences Instytut Gospodarki Surowcami Mineralnymi i Energią Polskiej Akademii Nauk November 21, 2014
- 2. Agenda MEERI Visit - 21.11.2014! ! Background ! About Me ! About CEDA ! About the Bren School ! Data Driven Sustainable Food Purchasing ! Thesis Group ! Client ! Problem ! Data ! Methods & Analysis (CEDA) ! Discussion & Conclusions ! Discussion
- 3. Background About Me: Clayton Heinrich ! Master of Science, Environmental Science and Management ! University of California, Santa Barbara - Bren School of Environmental Science & Management ! Bachelor of Science, Chemistry / Food Science & Human Nutrition ! University of Illinois at Urbana-Champaign ! Research & Development Specialist ! NOW Foods ! Singer / Songwriter Musician ! www.claytonheinrich.com ! Proud resident of Wrocław until March, 2015 ☺ MEERI Visit - 21.11.2014!
- 4. Background About CEDA ! Comprehensive Environmental Data Archive (CEDA) ! Developed by Sangwon Suh, PhD ! Economic input-output life cycle assessment tool used to quantify environmental impacts of different industrial processes ! Multiple functions ! Suite of indicator results ! Input Contribution tool ! Output Contribution tool ! Diverse applications ! Carbon footprinting, water consumption, other emissions ! More information at: http://iersweb.com/services/ceda/ MEERI Visit - 21.11.2014!
- 5. Background About the Bren School ! Master of Environmental Science and Management ! 2 year program ! Integrates science, management, law, economics, policy ! Group Project, capstone work that serves as Master’s thesis MEERI Visit - 21.11.2014!
- 6. Thesis Group Dustin Merback BA, Environmental Science and Policy Focus: Resource Optimization Clayton Heinrich BS, Chemistry, Food Science and Human Nutrition Focus: Corporate Sustainability Katie Filippini BS, Biology and Earth Sciences Focus: Conservation Planning Hannah Tillmann BS, Animal Science, Field Biology Focus: Corporate Sustainability MEERI Visit - 21.11.2014! Jason Huffine BA, Communication Studies, Spanish, Environmental Systems Focus: Corporate Sustainability Harish Prather BA, Business/Managerial Economics Focus: Energy and Climate
- 7. Client MEERI Visit - 21.11.2014! Google, Inc. ! Internet Search Engine & Online Advertising ! Annual Revenue - $50 Billion (2012) ! 70 Offices Globally ! Great Employee Benefits
- 8. Client Employee Benefits Free Employee Food Program ! Breakfast, lunch, dinner, and snacks ! Available to all employees, contractors, and vendors ! Source: WebProNews Source: Pittsburgh City Paper MEERI Visit - 21.11.2014!
- 9. Client Corporate Social Responsibility Commitment to the Environment ! Renewable energy investments ! Data centers ! Products ! Food program? Source: GetSolar.com MEERI Visit - 21.11.2014!
- 10. Problem MEERI Visit - 21.11.2014! Problem Statement Google wanted to understand: ! ! climate change and ! water consumption impacts of food purchases, and begin a data-driven approach to sustainable food purchasing
- 11. Problem Environmental Impacts of Agriculture Contribution to global impacts: MEERI Visit - 21.11.2014! Global Warming (26%) Water Consumption (70%)
- 12. Problem Growing World Food Demand Population Wealth 2x Global Food Demand 2x Environmental Impact MEERI Visit - 21.11.2014!
- 13. Data Crunchtime! I"N"F"O"R"M"A"T"I"O"N"""S"Y"S"T"E"M"S" Google HQ Purchasing Data ! April-June, 2013 ! 58 Google micro-categories ! 3,500 unique SKUs ! 22,000 lines ! $ Millions spent quarterly MEERI Visit - 21.11.2014!
- 14. Data Project Scope Phase Criteria ! Homogenous ! Minimally Processed ! Regional Variability ! Relevant Environmental Impacts ! MEERI Visit - 21.11.2014!
- 15. Data Project Scope Phase Criteria ! Homogenous ! Minimally Processed ! Regional Variability ! Relevant Environmental Impacts PHASE 1 PHASE 2 ! MEERI Visit - 21.11.2014!
- 16. Methods & Analysis MEERI Visit - 21.11.2014! Process Overview All Upstream Inputs Primary Inputs Food Items Purchaser
- 17. Methods & Analysis MEERI Visit - 21.11.2014! Process Overview All Upstream Inputs Primary Inputs Food Items Purchaser
- 18. Methods & Analysis MEERI Visit - 21.11.2014! Process Overview All Upstream Inputs Primary Inputs Food Items Purchaser
- 19. Actionable Info Food Categories Primary Inputs All Upstream Inputs Life Cycle Impact Assessment Input Contribution Analysis Sustainable Food Sourcing Methods & Analysis Process Overview Water Stress Index Output Contribution Analysis MEERI Visit - 21.11.2014!
- 20. Actionable Info Food Categories Primary Inputs All Upstream Inputs Life Cycle Impact Assessment Input Contribution Analysis Sustainable Food Sourcing Methods & Analysis Life Cycle Impact Assessment Water Stress Index Output Contribution Analysis MEERI Visit - 21.11.2014!
- 21. Methods & Analysis Life Cycle Impact Assessment Economic Input-Output Life Cycle Assessment ! If you know how much you spent on an item you can quantify the environmental impacts Environmental Impact Based on Economic Flows ! Screening of large data sets ! Multiple tools exist ! MEERI Visit - 21.11.2014!
- 22. Methods & Analysis Life Cycle Impact Assessment – CEDA Comprehensive Environmental Data Archive! DATA SOURCE PURPOSE RESULT Economic Flows Environmental Impacts Indicator Results Impact / $ IRGW,k = kg CO2e / $ IRWC,k = kg H2O / $ (2002) TRACI& MEERI Visit - 21.11.2014!
- 23. Methods & Analysis Life Cycle Impact Assessment – CEDA ! MEERI Visit - 21.11.2014! Assign Census Category to Google Food Category Deflate Purchases to 2002 dollar Calculate Environmental Impact 1 2 3 Google Food Category 2002 Annual Spending Census Category Name IRGW,beef (kg CO2e/$) GW Impact (ktonnes CO2e) IRWC,beef (kg H20/$) Water Consumption (ktonnes H2O) BEEF Animal (except poultry) slaughtering, rendering, and processing 3.15 4.68 455 676 Removed! per!NDA!
- 24. Methods & Analysis Life Cycle Impact Assessment - Results MEERI Visit - 21.11.2014! Annual Food Purchase Impact Totals Global Warming Impact 46 ktonnes CO2e Water Consumption 16 Mtonnes H2O 73% 27% Phase 1 Phase 2 37% 63% Phase 1 Phase 2
- 25. Methods & Analysis Life Cycle Impact Assessment - Results This is equivalent to 9,000 cars MEERI Visit - 21.11.2014! 6,500 Olympic pools Global Warming Water Consumption
- 26. Water Consumption vs. Global Warming Impact Vegetables) Fresh)Fruits) Beef) Pork) Chicken) Cheese) Nuts)+)Grains) Coffee)
- 27. Relative Global Warming Impact
- 28. Actionable Info Food Categories Primary Inputs All Upstream Inputs Life Cycle Impact Assessment Input Contribution Analysis Sustainable Food Sourcing Methods & Analysis Input Contribution Analysis Water Stress Index Output Contribution Analysis MEERI Visit - 21.11.2014!
- 29. Methods & Analysis Input Contribution Analysis ! What: Contribution analysis for primary inputs ! Why: Hotspots at farmer / processor level " scorecard ! How: CEDA - Input Contribution Analysis Tool MEERI Visit - 21.11.2014!
- 30. Methods & Analysis Input Contribution Analysis– Results Electricity Farming support activities Fertilizer Vegetable farming Petroleum Pesticides Farming real estate Cattle farming Water Wood packaging All remaining (individual contribution of <1%) 31%) 17%) 11%) 8%) 7%) 7%) 11%) Example: Vegetables Global Warming MEERI Visit - 21.11.2014!
- 31. Actionable Info Food Categories Primary Inputs All Upstream Inputs Life Cycle Impact Assessment Input Contribution Analysis Sustainable Food Sourcing Methods & Analysis Output Contribution Analysis Water Stress Index Output Contribution Analysis MEERI Visit - 21.11.2014!
- 32. Methods & Analysis Output Contribution Analysis ! What: Contribution analysis for all inputs in supply chain ! Why: Hotspots across entire supply chain" macro strategy ! How: CEDA - Output Contribution Analysis Tool MEERI Visit - 21.11.2014!
- 33. Methods & Analysis Output Contribution Analysis – Results Example: Global Warming Cattle farming Vegetable farming Electricity Grain farming Dairy cattle farming All remaining (individual contribution of <5%) Top Contributing Supply Chain 16%) 14%) 13%) 8%) 8%) 41%) Processes MEERI Visit - 21.11.2014!
- 34. Actionable Info Food Categories Primary Inputs All Upstream Inputs Life Cycle Impact Assessment Input Contribution Analysis Output Contribution Analysis Sustainable Food Sourcing Methods & Analysis Water Stress Index Water Stress Index MEERI Visit - 21.11.2014!
- 35. Actionable Info Food Categories Primary Inputs All Upstream Inputs Life Cycle Impact Assessment Input Contribution Analysis Output Contribution Analysis Sustainable Food Sourcing Methods & Analysis Water Stress Index Water Stress Index MEERI Visit - 21.11.2014!
- 36. Actionable Info Food Categories Primary Inputs All Upstream Inputs Life Cycle Impact Assessment Input Contribution Analysis Output Contribution Analysis Sustainable Food Sourcing Discussion Actionable Information Water Stress Index MEERI Visit - 21.11.2014!
- 37. Discussion Key Takeaways Hotspot Identified Strategic Action Food Categories Benchmarking Product Substitution Primary Inputs Scorecard Supply Chain Inputs Overall Perspective Life Cycle Impact Assessment Input Contribution Analysis Output Contribution Analysis MEERI Visit - 21.11.2014!
- 38. Discussion Assumptions & Limitations Methodology Sensitivity Analysis EIO LCA *Phase Criteria *Aggregation Data I"N"F"O"R"M"A"T"I"O"N"""S"Y"S"T"E"M"S" *Hydrology *Ecosystem Response MEERI Visit - 21.11.2014!
- 39. Discussion Assumptions & Limitations Methodology Sensitivity Analysis EIO LCA *Phase Criteria *Aggregation Data I"N"F"O"R"M"A"T"I"O"N"""S"Y"S"T"E"M"S" *Hydrology *Ecosystem Response MEERI Visit - 21.11.2014!
- 40. Actionable Info Food Categories Primary Inputs All Upstream Inputs Life Cycle Impact Assessment Input Contribution Analysis Sustainable Food Sourcing Water Stress Index Conclusion Output Contribution Analysis MEERI Visit - 21.11.2014!
- 41. Conclusion MEERI Visit - 21.11.2014! Food miles negligible Key Takeaways Top purchase impact: fruits + vegetables Large impact baseline Relative impact decreases quickly Top relative impact: animal products
- 42. Conclusion MEERI Visit - 21.11.2014! Moving Forward Product substitution Further research Supplier scorecards Water index for sourcing $) Consider other impacts
- 43. Conclusion Client Solution Problem MEERI Visit - 21.11.2014! ! Need for data-driven purchasing decisions to reduce environmental impacts: climate change water consumption Deliverables ! Baseline embodied CO2e emissions (carbon footprint) and water consumption ! Supply chain hotspots ! State irrigation water stress index
- 44. Conclusion MEERI Visit - 21.11.2014! Recap of CEDA Application CEDA Tool Knowledge Gained Indicator Result Carbon Footprint Water Footprint Input Contribution Tool Profile of Hotspot Primary Inputs Output Contribution Tool Profile of Hotspot Supply Chain Inputs Life Cycle Impact Assessment Input Contribution Analysis Output Contribution Analysis
- 45. Conclusion Special Thanks ! Sangwon Suh, PhD ! David Tilman, PhD ! Gary Libecap, PhD ! Yi Yang, PhD(c) ! Shivira Tomar, MESM ! Eric Edwards, PhD(c) ! Aubrey Dugger, PhD(c) ! Stephan Pfister, PhD MEERI Visit - 21.11.2014! Google ! David Bennett ! Victoria Ho Bon Appetit ! Helene York ! Charlie Liao ! Joe Dominguez
- 46. Thank you! Questions? MEERI Visit - 21.11.2014! Link to “Data Driven Sustainable Food Purchasing” Full Report
- 47. Appendix Data Overview MEERI Visit - 21.11.2014! - Information management system for food service industry - Annual purchases for food program - Comprehensive Environmental Data Archive (CEDA) - Industry specific Characterization Factors - GWP (kg CO2e / $) and WCP (kg H2O / $) - North American Industry Classification System (NAICS) - Categories used by BEA, and CEDA - National Oceanic and Atmospheric Administration - Precipitation (state / national) - United States Geological Survey - Water withdrawals from human use (state / national)
- 48. Appendix MEERI Visit - 21.11.2014! “Assessing the environmental impacts of a product throughout its entire life cycle” Apple Farming Transport Apple Processing Transport Grocery Store Life Cycle Assessment Total Impact =5 units water =5 units greenhouse gas
- 49. Appendix Life Cycle Impact Assessment - Results MEERI Visit - 21.11.2014! Daily Impact of a Google Employee: 835 gal H2O 9 kg CO2e Global Warming Water Consumption
- 50. Appendix MEERI Visit - 21.11.2014! Coarse Analysis – Global Warming Calculations Google Food Category 2002 Annual Spending Census Category Name GWP (kg CO2e/$) GW Impact (ktonne CO2e) VEGETABLES $3,945,382 Vegetable and melon farming 1.75 6.83 BEEF $1,485,709 Animal (except poultry) slaughtering, rendering, and processing 3.15 4.68 FRESH FRUITS $2,138,852 Fruit farming 1.55 3.39 PORK $1,062,846 Animal (except poultry) slaughtering, rendering, and processing 3.15 3.35 Removed! per!NDA! CHICKEN $1,541,277 Poultry Processing 1.51 2.32 CHEESE $903,527 Cheese manufacturing 2.49 2.25 NUT, SEED, RICE, GRAIN, BEAN $769,921 Tree nut farming 1.50 1.86 MILK $729,370 Fluid milk and butter manufacturing 2.22 1.62 EGGS $532,869 Poultry and egg production 2.39 1.27
- 51. Appendix Fine Analysis – Global Warming Calculations Google Food Category 2002 Annual Spending Census Category Name GWP (kg CO2e/$) MEERI Visit - 21.11.2014! GW Impact (ktonne CO2e) BEEF $1,485,709 Animal (except poultry) slaughtering, rendering, and processing 3.15 4.68 PORK $1,062,846 Animal (except poultry) slaughtering, rendering, and processing 3.15 3.35 CHICKEN $1,541,277 Poultry processing 1.51 2.32 CHEESE $903,527 Cheese manufacturing 2.49 2.25 Removed! per!NDA! MILK $729,370 Fluid milk and butter manufacturing 2.22 1.62 EGGS $532,370 Poultry and egg production 2.39 1.27 YOGURT $123,117 Fluid milk and butter manufacturing 2.22 1.09 LETTUCE $143,742 Vegetable farming 1.75 1.01 COFFEE $903,527 Coffee and tea manufacturing 1.04 0.96
- 52. Appendix Coarse Analysis – Water Consumption Calculations Google Food Category 2002 Annual Spending Census Category Name GWP (kg CO2e/$) MEERI Visit - 21.11.2014! Water Consumption (ktonnes H2O) BEEF $1,485,709 Animal (except poultry) slaughtering, rendering, and processing 3.15 675.66 CHICKEN $1,541,277 Poultry processing 1.51 502.97 PORK $1,062,846 Animal (except poultry) slaughtering, rendering, and processing 3.15 483.35 TOMATO $278,351 Fruit farming 1.55 421.52 Removed! per!NDA! COFFEE $915,601 Coffee and tea manufacturing 1.05 408.31 STRAWBERRY $237,761 Fruit farming 1.55 360.05 EGGS $532,370 Poultry and egg production 2.39 350.22 LETTUCE $574,967 Vegetable farming 1.75 329.99 BANANA $217,310 Fruit farming 1.75 329.08
- 53. Appendix Fine Analysis – Water Consumption Calculations Google Food Category 2002 Annual Spending Census Category Name GWP (kg CO2e/$) MEERI Visit - 21.11.2014! Water Consumption (ktonnes H2O) FRESH FRUITS $2,138,852 Fruit farming 573.92 2956 VEGETABLES $3,945,382 Vegetable and melon farming 573.92 2693 BEEF $1,485,709 Animal (except poultry) slaughtering, rendering, and processing 455.00 676 NUT, SEED, RICE, GRAIN, BEAN $769,921 Tree nut farming 84.52 578 Removed! per!NDA! CHICKEN $1,541,277 Poultry Processing 326.33 503 PORK $1,062,846 Animal (except poultry) slaughtering, rendering, and processing 454.77 483 COFFEE $903,527 Coffee and tea manufacturing 445.94 408 EGGS $532,869 Poultry and egg production 657.23 350 JUICES $188,915 Frozen food manufacturing 368.73 279
- 54. Appendix MEERI Visit - 21.11.2014! Life Cycle Impact Assessment – Phase 1 and 2 Finfish! Shellfish! Vegetables! Fresh!Fruits! Beef! Pork! Chicken! Cheese! Coffee! Beverages!
- 55. Appendix Life Cycle Impact Assessment – Results MEERI Visit - 21.11.2014!
- 56. 28%) 24%) 19%) 10%) 6%) Appendix Farming support activities Electricity Vegetable farming Water use Other crop farming Cattle farming Pesticide use Real estate Fertilizer use Petroleum use All remaining (individual contribution of <1%) Example: Vegetables Water Consumption MEERI Visit - 21.11.2014!
- 57. Appendix • The right ideas MEERI Visit - 21.11.2014! Output Contribution Analysis – Explain Utility
- 58. Appendix Output Contribution Analysis – Explain Utility • The right ideas MEERI Visit - 21.11.2014!
- 59. Appendix Output Contribution Analysis Example: Water Consumption Vegetable farming Fruit farming Grain farming Other crop farming Electricity All remaining (individual contribution of <5%) Top Contributing Supply Chain 18% 17% 11% 4% 7% 46% Processes MEERI Visit - 21.11.2014!
- 60. Appendix Limitations of EIO - LCA Indicator Results MEERI Visit - 21.11.2014!
- 61. Appendix Limitations of EIO - LCA Indicator Results MEERI Visit - 21.11.2014!
- 63. Methods & Analysis Water Stress Index MEERI Visit - 21.11.2014! ! What: Water stress has regional variability; water use in one state is not equivalent to use in another state! ! How:) Ws : Withdrawals (state) Wn : Withdrawals (national) Ps : Precipitation (state) Pn : Precipitation (national) Is : % Water Used for Irrigation (state) ! Why: Compare water use impacts across states!
- 64. State Irrigation Water Stress Impact Water Availability High Low
- 65. Appendix MEERI Visit - 21.11.2014! State Water Stress Impact Values denote H2Oe Impact per 100 kg CEDA Water Consumption 336 247 State Water Stress Index Value 9 83 46 122 101 182 49 223
- 66. Appendix Water Stress Index - Equations • !"#"$%#&$'#($%)'$*+)+"#"+,- +- ∗ 65,780,000%6+"$'! %7#"$' .' +- %)'$*+)+"#"+,- 8+2 ∗ !"#"$%8+2 ∗ 1%;(%7#"$' 1%6+"$' %7#"$' = %!"#"$%!=))6.% ;(%7#"$' .' ! ! • >(',=-?7#"$'%7+"ℎ?'#7#6 (#6 ?#. ∗ 3.785%;(%7#"$' 1%(#6 %7#"$' ∗ 365%?#.! 1%.' C + >!='E#*$%7#"$'%7+"ℎ?'#7#6 (#6 ?#. ∗ 3.785%;(%7#"$' 1%(#6 %7#"$' ∗ 365%?#.! 1%.' C = ! % ","#6%7+"ℎ?'#7#6! ;(%7#"$' .' ! !! • >7+"ℎ?'#7#6! ;(%7#"$' .$#' ÷ !=))6.% ;(%7#"$' .' C ∗ 100% = %%,E%7#"$'%!=))6.%=!$?! !! • (%%,E%!"#"$%7#"$'%!=))6.%=!$? ÷ I. J. #&$'#($%%%!=))6.%=!$?) ∗ 100% =! !"#"$%%%!=))6.%=!$%?$&+#"+,-%E',8%-#"+,-#6%#&$'#($! !! • LMNO%7#"$'%+8)#*" ∗ !"#"$%%%!=))6.%=!$%?$&+#"+,-%E',8%-#"+,-#6%#&$'#($ = '$(+,-#6+P$?%7#"$'%+8)#*"! !! • ((',=-?7#"$'%7+"ℎ?'#7#6 ÷ ","#6%7+"ℎ?'#7#6) ∗ 100% = %%(',=-?7#"$'%!ℎ#'$%,E%","#6%7#"$'%!=))6.! !!! MEERI Visit - 21.11.2014!