Key Skills Session 2
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What does Life Cycle Thinking (LCT) emphasize?

  • Focusing only on production efficiency
  • Considering environmental, social, and economic impacts throughout a product's life cycle (correct)
  • Maximizing profits during the manufacturing stage
  • Limiting assessments to the disposal phase of a product
  • In which levels can Life Cycle Assessment (LCA) be applied?

  • Only at the production site
  • Government policy enforcement
  • Products level and corporate level (O-LCA) (correct)
  • Supply chain management only
  • Which of the following best represents the goal of Sustainable Development in relation to LCT?

  • Balancing environmental, social, and economic factors for future generations (correct)
  • Maximizing short-term profits
  • Reducing manufacturing costs
  • Increasing market share through product sales
  • Which stage of the product life cycle does LCT encourage to improve resource consumption?

    <p>Every stage of the life cycle</p> Signup and view all the answers

    How can pollution transfer be avoided according to Life Cycle Thinking?

    <p>By considering the life cycle system in its entirety</p> Signup and view all the answers

    What is the relationship between Life Cycle Management and LCT?

    <p>Life Cycle Management is a practical application of Life Cycle Thinking</p> Signup and view all the answers

    What role does each actor have in the context of Life Cycle Thinking?

    <p>A role to play from cradle to grave/cradle</p> Signup and view all the answers

    What does the term 'cut-off rules' refer to in the context of system boundaries?

    <p>Criteria for excluding certain materials based on specific measures.</p> Signup and view all the answers

    Which of the following is NOT a defined LC phase according to the system boundaries?

    <p>Gate to Cradle</p> Signup and view all the answers

    In the context of LCA, what aspect does the 'level of scrutiny' refer to?

    <p>The depth of detail considered for different life cycle stages.</p> Signup and view all the answers

    How does the example of the MIT LCA study on hand dryers define the primary region of focus?

    <p>By focusing primarily on use in the United States.</p> Signup and view all the answers

    Which aspect is NOT considered in the system boundaries of an LCA study?

    <p>The specific materials used in production.</p> Signup and view all the answers

    What is the primary purpose of setting the goal in Life Cycle Analysis (LCA)?

    <p>To evaluate environmental impacts and improve design decisions</p> Signup and view all the answers

    Which question is NOT part of defining the goal and scope in an LCA?

    <p>When will the LCA process begin?</p> Signup and view all the answers

    In the context of the example study on hand dryers, who is the primary target audience?

    <p>Design and engineering teams as well as the public</p> Signup and view all the answers

    What is a potential outcome of conducting an LCA according to the identified goals?

    <p>Enhanced brand value for competitive differentiation</p> Signup and view all the answers

    Why is it important to identify impact drivers in an LCA?

    <p>To target factors influencing environmental impacts</p> Signup and view all the answers

    Which of the following is NOT a reason for conducting an LCA?

    <p>Develop a marketing strategy</p> Signup and view all the answers

    How does addressing the 'WHY' question in an LCA help the study?

    <p>It defines the specific objectives of the study.</p> Signup and view all the answers

    Which aspect is crucial when deciding 'WHO' the results of an LCA will be for?

    <p>The stakeholders who will use the findings</p> Signup and view all the answers

    What is a benefit of informing product design decisions through LCA?

    <p>It helps to create more environmentally friendly products.</p> Signup and view all the answers

    Who is considered the first audience for life cycle environmental impact analysis?

    <p>Any interested party wanting to understand the data and assumptions</p> Signup and view all the answers

    What must be established in the goal and scope of a Life Cycle Assessment?

    <p>A fair basis to compare options</p> Signup and view all the answers

    Which of the following describes a product's function in a Life Cycle Assessment?

    <p>An action describing the product’s purpose or its components’ purposes</p> Signup and view all the answers

    What are basic functions in the context of a product's function?

    <p>Core actions the product is designed to perform</p> Signup and view all the answers

    Which of the following best describes a functional unit in a Life Cycle Assessment?

    <p>The quantified performance of a system of products serving as a reference</p> Signup and view all the answers

    What is a crucial aspect of selecting a functional unit for a Life Cycle Assessment?

    <p>It should relate to a quantity of service rather than physical product</p> Signup and view all the answers

    Which example is NOT considered a basic function for the Node chair?

    <p>Store student’s belongings</p> Signup and view all the answers

    Additional functions of a product refer to which of the following?

    <p>Enhancements that provide extra value to the user</p> Signup and view all the answers

    In life cycle assessment, who are the Dyson engineers primarily focused on?

    <p>Understanding drivers of environmental impact</p> Signup and view all the answers

    What is a common mistake in defining functional units?

    <p>Assuming physical quantity equals function</p> Signup and view all the answers

    Which represents an overly restrictive definition of a functional unit?

    <p>Active usage of product for 10,000 hours</p> Signup and view all the answers

    What are system boundaries in LCA related to?

    <p>Environmental impacts and unit processes</p> Signup and view all the answers

    What defines elementary flows in the context of LCA?

    <p>Emissions that directly enter the environment</p> Signup and view all the answers

    What are non-elementary flows characterized by?

    <p>Intermediate products or wastes between actors</p> Signup and view all the answers

    Which of the following is NOT a mistake when defining functional units?

    <p>Application of broad definitions</p> Signup and view all the answers

    In LCA, what does 'cradle to gate' refer to?

    <p>Assessment from resource extraction to delivery</p> Signup and view all the answers

    Why are incorrect uses of technical standards often a mistake in functional unit definition?

    <p>They may not reflect environmental efficiency</p> Signup and view all the answers

    Which of the following best exemplifies an incorrect interpretation of a functional unit?

    <p>10,000 hours of usage for performance</p> Signup and view all the answers

    What is an example of a common misconception regarding functional units?

    <p>Physical quantity equates to functionality</p> Signup and view all the answers

    Study Notes

    SKEMA Business School - Key Skills for Corporate Transition: Life Cycle Assessment

    • This presentation is about key skills for corporate transition, with a focus on life cycle assessment (LCA).
    • The presenter is Professor Yoann Guntzburger, Ph.D.
    • The target audience is SKEMA PGE M1 S1 - 2024 students.

    Introduction

    • There is a QR code to access a participation platform (wooclap.com)
    • The event code is LCAPGE
    • Participants can also use SMS by sending @LCAPGE to 06 44 60 96 62.

    Session's Overview

    • Life cycle approaches are important for sustainable business decisions.
    • LCA is used to move beyond life cycle thinking by systematically assessing all impacts over the product's entire life cycle.
    • LCA frameworks and limitations are also discussed.

    Importance of Life Cycle Approaches to Sustainable Business Decisions

    • Sustainability is a megatrend currently transforming companies due to various pressures.
    • These pressures include: Regulation, Investor (ESG), Consumer/Stakeholder, Employee, Competition, Cost & Risk, and Awareness-raising.

    Sustainable Value Creation

    • Companies improve sustainability performance by gaining competitive advantages and enhancing reputation.
    • Strategies include reducing risks and costs of scarce resources, developing more sustainable (e.g., environmental/social) products and processes, and targeting specific environmental and social needs.

    Sustainable Value Creation: Value Creation

    • It describes actions using both tangible and intangible organizational assets to increase the worth of goods/services or a business as a whole.
    • Value equals monetary worth.

    Sustainable Value Creation: Sustainable Value Creation

    • It's about the organization's actions that increase the economic, social, and environmental value of goods and services within the business while ensuring sustainable value creation capacity.

    The Big Question Remains...

    • The key question is how to make sure sustainable decisions are made.

    5 Main Purposes of LCA Applications

    • Decision support for product and process development (R&D)
    • Marketing purposes (e.g., eco-labeling)
    • Developing and selecting environmental indicators for product/plant monitoring
    • Selection of suppliers/subcontractors
    • Strategic planning

    Two Levels of Applications

    • Products (goods and services) level
    • Corporate level: Organizational LCA (O-LCA)

    From Life Cycle Thinking (LCT) to Life Cycle Assessment (LCA)

    • A visual diagram shows the phases of a product's life, from raw materials to end-of-life, including manufacturing, use, and disposal.
    • The diagram indicates different environmental impacts at each stage, e.g., carbon footprint, water footprint, and impact on ecosystems.

    From LCT to LCA

    • A simplified diagram of the steps required to successfully implement Life Cycle Management (LCM) in a business.
    • Breakdown of Life Cycle Thinking (LCT) into the stages of Mindset, Integration into Practice, Management, and LCA.
    • LCM touches on Policy/Strategy, Processes, Concepts/Programs, Tools/Tech, and Data/Models.

    Life Cycle Thinking

    • Definition: LCT is a holistic perspective beyond production, encompassing product impacts over the entire life cycle.
    • Sustainable development is both the origin and objective of LCT.

    Life Cycle Thinking: Lifecycle Diagram

    • Presents a typical product life cycle diagram.
    • Highlights the potential for reducing resource consumption and improving product performance at each stage of the product life cycle.
    • Emphasizes the need to consider the entire life cycle system to avoid pollution transfer.
    • Each actor from "cradle to grave" has a role to play.

    Life Cycle Thinking: Example: The Life Cycle of a T-Shirt

    • Asks what the stages of the T-shirt life cycle are and the main environmental impact of each stage.
    • Shows a diagram of a T-shirt Lifecycle and the environmental issues.

    Life Cycle Thinking: Lifecycle of a T-Shirt: Social Issues

    • Diagram showing the social issues during the T-shirt Lifecycle, including child labor, low wages, worker health & safety. Discusses labor rights issues and community health impacts.

    Life Cycle Thinking

    • Shift in mindset: a holistic perceptive.
    • Recognizing how choices influence all life cycle steps.
    • Innovation potential: considering both opportunities and risks from raw materials to disposal.

    Life Cycle Thinking (Quiz) – Participation Platform

    • Instructions on how to access the quiz through a website (wooclap.com)
    • Event code provided (LCAPGE)

    Life Cycle Management (LCM)

    • A set of practices used to target, organize, analyze and manage product/service related info/activities toward continuous improvement.
    • Includes systematic integration of sustainable strategies into product design, development, and purchasing decisions.
    • Fosters a holistic perspective of interdependencies within and between businesses.

    Life Cycle Management

    • Diagram of a circular flow of various concepts and tools/techniques like Sustainable Development, Triple Bottom Line, Dematerialization, etc, within a life cycle management context.

    Life Cycle Assessment (LCA)

    • LCA is a quantitative method to assess environmental impacts associated with a product's life cycle (or product – process – service).
    • It's a decision-making tool for sustainability management, aiding in evaluating multiple options.

    Life Cycle Assessment (LCA)

    • Strengths of LCA: scientifically based and data-driven, comprehensive integration of impact categories (like climate change, resource depletion), and framed by international standards (ISO 14040 series).
    • Prevents pollution shifting.

    Life Cycle Assessment (LCA) – Pollution Shifting

    • Diagram illustrating the concept of pollution shifting, showing potential environmental impacts at different stages.

    LCA - How Does It Work?

    • Diagram outlining the process of LCA, illustrating how product/service system data are used with environmental models and impact results are processed through calculation.
    • Provides an overview of the software & databases used in LCA studies (ecoinvent, Gabi, USDA).

    Full LCA – A Standardized Process

    • Description of the history, development, and key organizations (SETAC, UNEP, ISO) involved in standardizing LCA methodology.
    • Discusses the ISO standards relevant in environmental management systems and Life Cycle Assessment.

    Life Cycle Assessment (LCA) Methodology

    • Description of a 4+1 step LCA methodology: goal, scope definition, inventory analysis (LCI), impact assessment, interpretation & critical review

    LCA – Step 1: Goal & Scope

    • 4 questions (WHY, WHO, WHAT, WHERE) to define the LCA goals and scope.
    • Examples of LCA studies (e.g., hand dryers).
    • Discusses target audiences and the importance of defining the functional unit and the system boundaries.

    LCA – Step 1: Goal & Scope

    • Importance of establishing a clear goal for the LCA, including identifying the specific questions & objectives.
    • Example from a MIT study commissioned by Dyson about hand-dryer systems.
    • Details on who the target audience was for this specific study.

    LCA – Step 1: Functional Unit

    • LCA requires a fair basis to compare options.
    • A product's function is an action describing its purpose or components' purpose(s)
    • A simple way to describe a function is: verb + complements.
    • Illustrative examples of functions are provided (node chair).

    LCA – Step 1: Functional Unit (Examples)

    • Examples of functional units, with a focus on clarifying the intended use in the study, emphasizing the relation between the function of a product and the quantity of service provided.
    • Three common mistakes when defining FU are pointed out.

    LCA – Step 1: System Boundaries

    • System boundaries are introduced, focusing on defining and quantifying environmental impacts from the different phases and sources of the system.
    • Distinguishes between "cradle to gate" and "cradle to grave" or "cradle to cradle."

    LCA – Step 1: System Boundaries (Cut-Off Rules)

    • Guidelines for defining cut-off rules for the scope of a given LCA study, such as those concerned with weight, cost, or environmental aspects contribution.

    LCA – Step 2: Life Cycle Inventories (LCI)

    • An LCI is a list of quantified elementary flows (resources and emissions), and secondary flows (intermediate and final products/waste) needed for the functional unit.
    • The data is categorized by inputs (materials, energy, water, air) and outputs (waste, effluents, emissions).

    LCA – Step 3: Impact Assessment (LCIA)

    • The objectives are to understand and evaluate the magnitude and significance of potential environmental impacts and choice of databases and specific impact assessment methods.
    • Methods and considerations when choosing the appropriate database and impact assessment method.
    • Importance of the impact categories (midpoint and endpoint).
    • Categories, relevant regulations, and the company's environmental agenda are vital considerations.
    • Example: IMPACT 2002+ categories and endpoint categories of protection.

    LCA – Step 3: Impact Assessment - Databases

    • Presentation of various LCA databases like IMPACT 2002+, Eco-Indicator 99, CML 2001, and other relevant impact assessment methods and databases.

    LCA – Step 3: Impact Assessment - Categorization

    • Three main steps to reconcile different flow quantities into specific impact categories.
    • Categorization, characterization, normalization, and weighting, which relate to the quantities of flows (from LCI) in terms of equivalent quantities of reference substances and consideration of the importance (weighting).

    LCA – Step 3: Impact Assessment - Normalization and Weighting

    • The use of reference exposure and weighting schemes (average annual impact, weights associated with relative and subjective importance).
    • The transformation of the results to create a single score in 'points' (Pt) to measure and combine damage/environmental impacts.
    • Examples of impact results are provided. (e.g., chart showing results of Normalized IMPACT 2002+).

    LCA – Step 4: Interpretation & Conclusion

    • Objectives of the interpretation and conclusion: Analyze results & make recommendations using a sensitivity & uncertainty analysis.
    • How sensitivity and uncertainty analysis can be performed and considerations to be made regarding the interpretation of data and potential limitations.
    • Diagrams illustrating the process.

    Limitations: Decision Making

    • Many decisions are made in an LCA study regarding the functional unit, scope, type of LCA, cut-offs, impact categories, allocations, and weighting.

    Limitations: Data and Model Quality

    • LCA data/model quality issues affecting the process accuracy and reliability, e.g., uncertainties related to parameters, scenarios, or models.
    • Examples of uncertainty source related to the IT sector are considered.

    Limitations of LCA vs Sustainability

    • LCA alone cannot fully determine sustainability.
    • Environmental impacts are only a part of the assessment, although two methods are introduced to help address the sustainability gap, i.e., eLCC (Environmental Life Cycle Costing) and S-LCA (Social Life Cycle Analysis).
    • Additional methods for a more complete sustainability assessment to fill the gap, aligned with ISO 14040 standards. (eLCC and S-LCA)

    Main Challenges to LCA Development

    • Barriers and challenges in implementing sustainability management tools, including LCA, by SMEs are presented, i.e., lack of awareness, knowledge, resources, incentives, flexibility of organizational routines and tool complexity.

    Quiz K2

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