Key Skills For Corporate Transition PDF

KEY SKILLS FOR CORPORATE TRANSITION Life Cycle Assessment Prof. Yoann GUNTZBURGER, Ph.D. SKEMA PGE M1 S1 - 2024 INTRODUCTION 2 SESSION’S OVERVIEW Importance of Life Cycle approaches to sustainable business decisions; From Life Cycle...

KEY SKILLS FOR CORPORATE TRANSITION Life Cycle Assessment Prof. Yoann GUNTZBURGER, Ph.D. SKEMA PGE M1 S1 - 2024 INTRODUCTION 2 SESSION’S OVERVIEW Importance of Life Cycle approaches to sustainable business decisions; From Life Cycle Thinking to Life Cycle Assessment (LCA); LCA Framework and Main Limitations; 3  IMPORTANCE OF LIFE CYCLE APPROACHES TO SUSTAINABLE BUSINESS DECISIONS THE SUSTAINABILITY IMPERATIVE Sustainability is now a megatrend that is transforming companies because of multiple pressures: ‒ Regulation pressures; ‒ Investor pressures (ESG criteria); ‒ Consumers and stakeholder pressures; ‒ Employees pressures; ‒ Competition pressures; ‒ Costs & risks pressure; ‒ Awareness-raising. 5 SUSTAINABLE VALUE CREATION Main strategies for companies to improve their sustainability performance, gain competitive advantage and enhance their reputation: ‒ Reduce risks and costs of scarce resources; ‒ Develop more sustainable (env/soc) products, processes or the overall business; ‒ Target specific environmental and social needs (social ventures/enterprises). Creation of sustainable value through innovation. Mignon & Bankel (2022). Sustainable business models and innovation to realize them: A review of 87 empirical cases. Business Strategy and the Environment 6 SUSTAINABLE VALUE CREATION Value creation: ‒ The performance of actions (using organizational assets, both tangible and intangible) that increase the worth of goods, services or even a business; ‒ Value = monetary value; Environmental (natural resource use, pollution prevention, reduction of emissions) Sustainable value Social Economic (Standard of living, equal Social- (Profit, cost-savings, opportunities, safety, Economic economic growth) Sustainable value creation: health) (Fairtrade, human rights) Performance of the organisation’s actions that increase the economic, social and environmental value of goods, services or the overall business, while ensuring its sustainable value creation capability 7 7 THE BIG QUESTION REMAINS… How to make sure that we make the most sustainable decision??? 8 5 MAIN PURPOSES OF LCA APPLICATIONS 1. Decision support in product and process development (R&D); 2. Marketing purposes (e.g. Eco-labelling); 3. Development and selection of indicators used in monitoring of environmental performance of products or plants; 4. Selection of suppliers or subcontractors; and 5. Strategic planning. 9 TWO LEVELS OF APPLICATIONS Products (goods and services) level; Corporate Level: Organizational LCA (O-LCA); 10  From Life Cycle Thinking (LCT) to Life Cycle Assessment (LCA) Quantis 11 FROM LCT TO LCA MINDSET Life Cycle Thinking INTEGRATION INTO B. PRACTICE Life Cycle Management POLICY/ DATA/ STRATEGY MODELS SYSTEMS/ TOOLS/ PROCESSES CONCEPTS/ TECHN. PROGS LCA 12 LIFE CYCLE THINKING Definition: “Life Cycle Thinking (LCT) is about going beyond the traditional focus on production site and manufacturing processes to include environmental, social and economic impacts of a product over its entire life cycle.” Life Cycle Initiative – UNEP/SETAC Sustainable development is both the origin and the objective of LCT 13 LIFE CYCLE THINKING Typical product Design lifecycle diagram In each life cycle stage, there is the potential to reduce resource consumption and improve the performance of products; Component processing & production Necessity to consider the life cycle system in its globality to avoid pollution transfer; Each actor, from cradle to grave/cradle, has a responsibility and a role to play LCI – UNEP/SETAC Life cycle thinking is not only a matter of circular economy! 14 LIFE CYCLE THINKING Example: The life cycle of a T-Shirt What are the main life cycle stages? What are the main source of env. impacts for each stage? 15 LIFE CYCLE THINKING 16 LIFE CYCLE THINKING 17 LIFE CYCLE THINKING Shift in mindset: a holistic perspective; It means that we recognise how our choices influence each of the life cycle phases; Potential for innovation: identification of both opportunities and risks of a product or a service, all the way from raw materials to disposal; 18 LIFE CYCLE THINKING 19 Life cycle management LCM 20 LIFE CYCLE MANAGEMENT Set of practices that can be used to target, organize, analyze and manage product/service-related information and activities towards continuous improvement along the product/service life cycle; Systematic integration of product/service sustainability in company strategy and planning, product design and development, purchasing decisions and communication policies and programs; Holistic view and a full understanding of interdependency within one organisation and between businesses; 21 LIFE CYCLE MANAGEMENT 22 LIFE CYCLE MANAGEMENT 23 Life cycle assessment LCA 24 LIFE CYCLE ASSESSMENT Life Cycle Assessment (LCA) : ‒ Quantitative method to assess environmental impacts related to a product's life cycle (product – process – service); ‒ It is decision-making tool for sustainability (environmental) management: choice between multiple options; 25 LIFE CYCLE ASSESSMENT The strengths of LCA: ‒ Scientifically based and data-driven; ‒ Comprehensive: integrates multiple impact categories (climate change, resource depletion, air acidification, eutrophication, air toxicity, biodiversity loss, etc.); ‒ Framed by international standards (ISO 14040 series); ‒ Avoids ”pollution shifting”. 26 LIFE CYCLE ASSESSMENT Pollution shifting (or Pollution transfer): Impact Impact 1 2. Raw Fabrication Distribution Use End of Life Raw Fabrication Distribution Use End of Life materials materials Phase, type of impact or geographic region 27 LCA – HOW DOES IT WORK? MODEL & ASSESSMENT SOFTWARE Product/Service Model env. Databases system & data data Ecoinvent SimaPro Gabi OpenLCA USDA Ecochain Methods LCA Asses env. Impact Results Methods impacts https://ecoinvent.org/the-ecoinvent-association/software-tools/ 28  FULL LCA – A STANDARDIZED PROCESS Society of Environmental 1990s: scientific exchange platform for the development of LCA Toxicology and Chemistry (SETAC) 2002: SETAC and UNEP launch the Life Cycle Initiative 2002 – 2007: developing consensus on life cycle approaches The United Nations 2007 – 2011: spreading awareness and use of life cycle approaches Environment Program (UNEP) throughout the world 2012 – now: developing consensus on impact indicators and guidance for organizational LCA The International Organization for 1980 and 1990s: ISO published over 350 standards / environmental issues Standardization (ISO) ISO 14000: environmental management systems 1990s: ISO 14040 series on LCA, revised in 2006 30 LIFE CYCLE ASSESSMENT ISO 14040 & ISO14044 LCA Methodology: 4 (+1) main steps 1. Goal & Scope LIFE CYCLE ASSESSMENT definition FRAMEWORK Direct applications: Product development 2. 4. and improvement; Need for Inventory Strategic planning; comprehensive Interpretation analysis (LCI) Public policy making; Databases Marketing; Etc. 3. Need for 5. Critical review Impact software and assessment models 31  Life cycle Analysis Step 1: Goal and Scope 32