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Posts tagged 'UK Legislation'

The Single Market For Green Products – Facts and figures

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The European Commission has released the following facts and figures from the Single Market for Green Products initiative:

* The global market for low carbon environmental goods and services is estimated at €4.2 trillion. EU companies’ market share is 21% (UK Department for Business, Innovations and Skills, 2012).

* Xerox reported savings of $400 million and Zara €500 million in 2009 by designing their products to minimise their life-cycle environmental impact.

* There are currently more than 400 environmental labels worldwide (www.ecolabelindex.com).
For analysis at company level, 80 leading methodologies and initiatives were identified according to which GHG reporting could be carried out (EC study, 2010).

* For product carbon footprinting, 62 leading initiatives and methods were identified (EC study, 2010).

* PUMA has stated that 94% of the environmental impacts of its products occur along the supply chain.

* 90% of consumers buy green products at least sometimes (Eurobarometer).

* 39% of consumers say business claims about the environment are not accurate (GFK, 2011).

* Only 6% of EU citizens trust producers’ claims about their products’ environmental performance completely (Eurobarometer, 2009).

* 94 companies examined used 585 different indicators in environmental reports. Of the indicators disclosed, 22% were used by more than 3 corporations; 55% were used only once (Journal of Cleaner production, 2012).

* Investors are interested: the investors’ base behind the Carbon Disclosure Project grew from 35 investors with assets of 4.5 trillion USD in 2003 to 655 investors with assets of 78 trillion USD in 2012.

* More than 1/3 of 250 business executives said that they could not keep up with consumer demand for sustainable products and services and 62% declared that sustainable investments were motivated by consumer expectations for green products (Accenture, 2012).

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How to revolutionise other industry sectors through a magic metric

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A practical guide for policy-makers. So how do we get beyond the car sector?

Below is a brief guide to creating transformational change within a sector or product category based on the concept of FPT.

1. Do an LCA in order to understand the main environmental impact of that sector or product category (e.g. food, buildings, chemicals, electricity, etc.).

2. Develop a common metric based on the full lifecycle impact or at least on the main impact area.

3. Establish a long-term goal stating what performance is required by when. This can be a fixed value or variable in order to increase competition.

4. Establish minimum performance required and ban underperform- ing products (you might get some World Trade Organization issues but there are always ways around it).

5. Create a system where industries pay penalties for underachieving and/or tax credits for overachieving. That encourages industries to compete and innovate. 6. Mandate visibility of the common metric on all promotional materials.

7. Enable and encourage national taxes, whereby the products with more environmental impact pay more and products with less impact pay less (variable product tax).

8. Enable local regulation that gives ‘incentives’ to products with less impact (e.g. what free parking and free congestion charge is doing for the cars).

9. Support and enable data intermediaries to be creative and do their job to help consumers make sense of the data.

10. Release the power of public procurement and buy only products that achieve certain performance levels.

11. Encourage equally the power of corporate procurement.

12. Award with the EU Ecolabel those products that demonstrate more than 50% impact reductions over the average product.

13. Sit and relax – the market usually delivers (but you need to tell the market what you want).

 

Let’s look at the building sector and try to apply this thinking (in a very simplistic way):

a) Magic metrics could be kWh/m2 and kg of embodied CO2/m2 (I will focus on the first one).

b) Set up a minimum European standard of, let’s say, 100 kWh/m2 for new buildings in 2020.

c) Give the EU Ecolabel to new buildings under, let’s say, 50 kWh/m2.

d) Give tax discounts to new buildings under, let’s say, 50 kWh/m2.

e) Facilitate licences/permits to the super-performing buildings (e.g. fast track or no permit required).

f) Existing houses pay variable rate of stamp duty and local council tax according to their energy rating (would encourage retrofit more radically than green deal type of approaches).

g) Government would commit to the strongest standard for new buildings and would retrofit existing government buildings to a minimum standard.

h) Mandatory energy ratings displayed in every public and private building including offices, retail, etc.

This is a back of the envelope approach that does not take into account the fine details such as the differences in building types such as domestic, office or retail, but it gives an idea of what the magic metric approach can deliver.

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PEF Policy Conference – 29-30 April – Berlin

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Join us at the PEF Policy Conference where they will release details on the upcoming pilot phase on the development and testing of Product and Organisational Environmental Footprinting Category Rules, benchmarks and communication vehicles.

Rana Pant from the European Commission Joint Research Center will be available to assist Michele Galatola from DG Environment on the technical aspects of the pilot phase. An updated programme for the event will be posted tomorrow here.

The PEF Policy Conference will be held on 29-30 April 2013 in Berlin. Objectives include; developing an early understanding of open questions, next steps and perspectives from different stakeholders on the future use of the detailed product environmental footprinting methodology and respective policy options. All participants are invited to actively contribute to the open dialogue to sharpen the common understanding of the road ahead.

Please click on the image below to find out all about the PCF World Forum including the program of events for this coming week.

Product Environmental  Footprinting (PEF)

Registration is still available via online or Fax Form

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Helping companies and consumers navigate the green maze

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The European Commission has released a fantastic initiative around the subject of ‘Building the Single Market for Green Products’. Helping companies and consumers navigate the green maze.

What is the problem for companies?

A company wishing to market its product as green in several Member State markets faces a confusing range of methods and initiatives. Let alone the hundreds of certification sharks, private labels and incumbent national systems that make a huge amount of money from this.

What is the problem for ‘Mum’ in the supermarket?

Consumers are also confused by the stream of incomparable and diverse environmental information: according to a recent Eurobarometer, 48 % of European consumers are confused by the stream of environmental information they receive. This also affects their readiness to make green purchases.

In the words of Commissioner Potocnik

“To boost sustainable growth, we need to make sure that the most resource-efficient and environmentally-friendly products on the market are known and recognisable. By giving people reliable and comparable information about the environmental impacts and credentials of products and organisations, we enable them to choose. And by helping companies to align their methods we cut their costs and administrative burdens.”

The commission has issued strong guidance on product footprinting as well as organisation footprinting. I will be commenting on these documents in the future.

The EC is launching a three-year pilot phase. Their objectives:

* Set up and validate the process of the development of product group-specific rules (Product Environmental Footprint Category Rules – PEFCRs), including the development of performance benchmarks. Where product group-specific rules already exist and are used by stakeholders, the Commission will use these as a basis for the development of the PEFCRs;

* Make the application of the environmental footprint methods easier, especially for SMEs, by testing innovative ways of managing the process and through the development of tools;

* Test different compliance and verification systems, in order to set up and validate proportionate, effective and efficient compliance and verification systems;

* Test different business-to-business and business-to-consumer communication vehicles for PEF information in collaboration with stakeholders.

I hope businesses will jump at these pilots to achieve our dream of open standards and push for full product transparency in the market without delay.

 

Links

Original press release

Draft Communication from the Commission to the European Parliament and the Council: Building the Single Market for Green Products – Facilitating better information on the environmental performance of products and organisations (April 2013)

Draft Commission Recommendation on The use of common methods to measure and communicate the life cycle environmental performance of products and organisations (April 2013)

Annex II of the Recommendation: Product Environmental Footprint (PEF) Guide (April 2013)

Annex III of the Recommendation: Organisation Environmental Footprint (OEF) Guide (April 2013)

For more information contact: 

Joe Hennon (+32 2 295 35 93) and Monica Westeren (+32 2 299 18 30)

 

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5. What is an epd?

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Full Product Transparency bookExcerpt 5 from the book ‘Full Product Transparency

‘What is an EPD?’

An environmental product declaration (EPD) is a statement of a product’s ‘ingredients’ and environmental impacts across its lifecycle. In the same way that nutritional labels help consumers compare the health benefits of food items, an EPD enables them to compare the environmental impacts of products.

Why an EPD is not just another eco-label

An EPD is not another eco-label. It is a statement of fact about the environmental impacts of a product. There are no ratings, claims or judgement calls to be made, as there are with eco-labels: an EPD itself doesn’t tell you whether a product is good or bad, green or polluting; it just provides the facts to enable better informed decisions.

In the same way that a chocolate bar with a nutritional label is not necessarily any healthier than a chocolate bar without one, having an EPD does not mean a product is ‘better’ or more sustainable. It does, however, enable customers to compare products and choose the ones that have least impact.

EPDs give you the full picture: for example, data on several environmental impact categories. Your product might be good on global warming potential (e.g. low CO2) but have a high acidification potential (e.g. high SO2) and both parameters have to be reported and not cherry-picked by the company.

How are EPDs created?
The methodology used to obtain an EPD is robust, and the assumptions used in the LCA calculations behind it are standardised. This means that manufacturers cannot manipulate assumptions to favour their own product (by calculating an artificially long life-span, for example). The methodology uses internationally recognised standards; an LCA must be conducted in accordance with ISO 14040 and the EPD must be produced in accordance with ISO 14025. All of this must be verified by an independent third party.

What does an EPD tell you?
A good EPD declaration would disclose the following:

• A list of raw materials and their origin
• A list of chemicals and their origin
• A description of raw material processing and production
• Specifications on the manufacturing of the product, including a breakdown of energy consumption and embodied energy, emissions released, treatment of waste, and packaging and transport
• Information on product use and end of life processing, including treatment of any waste and emissions released
• A table with the LCA results per impact category per lifecycle stage
• Evidence and verification for the calculations. All EPDs need to provide a report showing evidence for verification of the calculations and statements in the EPD

Once all these data about the environmental footprint of the product have been verified by an independent third party auditor, they then need to be captured in a clear and concise declaration.

How EPDs provide full product transparency and why that matters

FPT disclosure based on EPDs empowers and enables all customers, whether they are governments, businesses or consumers, to gain a clear understanding of the total environmental and social impact of a product, including at its end of life.
Providing customers with accurate, impartial third party-certified information about the total footprint of a product allows them to vote through their purchasing decision and to buy the right sustainable product. This will not only have a positive impact on the environment and society but also on competition and innovation. It creates a clearly visible level playing field for companies offering similar products within a sector, and it forces them to compete not only on price and quality but on all aspects that go into the making of a product.

EPDs are inexpensive, contrary to the urban myth

Some people argue that EPDs are very expensive and, especially if you have too many product categories, that it becomes unmanageable. This is like arguing that Unilever or Kraft would find it impossible and very expensive to provide the nutrition facts for all their products, given their product range. Yet they manage.

EPDs are expensive if you don’t do the internal work and you ask a consultant to do all the work for you. You would end up paying from €10,000 to €15,000, which is still much less that what many companies pay for some green labels. To put this into perspective, I have seen companies in the building products sector pay more than €50,000 for various types of green labels and certification schemes of dubious independence and robustness.

Once you invest internally and a small part of your corporate social responsibility (CSR) or sustainability team have the ability to perform LCAs, it becomes very inexpensive and EPDs can be done for less than €1000, sometimes even €500. And the information collected is not only of great use externally but for internal purposes and decision-making, mostly substituting for redundant internal reporting.

Example of information contained in a real EPD

Result of the LCA for Microtuft modular PA 6.6 carpet from InterfaceFlor

 

Next time ‘The Magic Metric That Changed The Car Industry’

… please revisit regularly for more excerpts from the book ‘Full Product Transparency‘ – or rent/buy by clicking here

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An Interview with Michele Galatola – ‘EU Environmental Footprinting’

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Michele Galatola from DG Environment at the European Commission provides an overview on the rationale of the EU environmental footprinting methodology.

In this short video he describes the addressed audience and possible fields of application of the methodology.

Furthermore Michele Galatola shares insights on the role of environmental footprinting in future EU policy.

From the PCF World Forum, Sep 2012 (Published Nov 2012) -

Renewable Resources in the Value Chain. A Viable Option for Reducing Environmental Footprints?”

About the PCF World Forum

Consumption of goods and services indirectly contributes to a large share of worldwide GHG emissions. Efforts are underway to better understand, manage and reduce these emissions. Standards and tools for carbon footprinting as well as more comprehensive environmental and sustainability metrics are developed, refined and practically tested.

The Product Carbon Footprint (PCF) World Forum is a neutral platform to share practical experiences and knowledge towards climate-conscious consumption and production. The international platform provides orientation in current standardisation processes and creates opportunities for discussing international corporate best practices and emerging tools to support low carbon and climate-conscious consumption models.

The PCF World Forum was created out of the ambition to talk with each other and not just about each other given the ever increasing number of initiatives around the world and often little real understanding of respective approaches and activities.

PCF World Forum is an initiative by Berlin based think-do-tank THEMA1.

www.pcf-world-forum.org

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‘Breakthrough’ – latest report by Volans – A must read!

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Breaththrough by Volans - Sustainability ReportJohn Elkington, Susie Braun and the team at Volans have pulled this report together titled ‘Breakthrough’

‘Breakthrough’, their seventh publication to date draws on five years of work and over 100 interviews with key people in the field for this project to sketch a manifesto and linked agenda to help move towards Breakthrough change. The report focusses on solutions across the economic, environmental, social and governance agendas. Their criteria for this agenda can be found on page 18 and mapping of progress to date can be found on page 51, tracking the evolution of the agenda from early denial to today’s growing interest at the leading edge of business in catalysing market revolutions.

Their sub-website www.breakthroughcapitalism.com goes into much greater detail, and the report can be downloaded here.

Here is an excerpt from the beginning of the report:

Business leadership is now make-or-break in rebooting capitalism

” A spectre is haunting the global economy — the spectre of economic, social and environmental breakdown.

Some people will instantly recognize that these words echo the Communist Manifesto, published in 1848.7 We are champions of future-ready capitalism, but it is hard when re-reading Marx and Engels to ignore the striking parallels with today’s world, with an old order breaking down—and a new one struggling to be born.

Sustainability Report - We Burned Our Way To Prosperity

The bloody chaos that ensued as various forms of communism helped socialize capitalism, forcing wrenching changes in wealth distribution, suggests that the timing and scale of our responses will determine the future prospects of billions of people. But at a time when we are incurring ever-greater debt—including environmental debt imposed on future generations—it is time for a giant, sustained deleveraging of our economies.

Drawing on the 26 presentations at our first Breakthrough Capitalism Forum8 and some 100 subsequent interviews with leading figures in the field, we have distilled the various calls for action into this brief Manifesto.It is set in the context of the three scenarios spotlighted at the Forum and on pages 16–19: ‘Breakdown,’ ‘Change-as-Usual’ and ‘Breakthrough.’

Volans is pursuing several Breakthrough trajectories. They include the promotion of zero-based targeting in business and public policy, with our agenda laid out in The Zeronauts: Breaking the Sustainability Barrier; 9 our involvement in initiatives pushing the boundary of science and technology, among them Biomimicry 3.8, 10 founded by Janine Benyus, and cleantech venture fund Zouk Capital; 11 and C-Suite-focused platforms like The B Team,12 whose co-presidents are Sir Richard Branson and Jochen Zeitz, former CEO of PUMA (pages 17 and 26).

Among projects in the pipeline: a new book, Tomorrow’s Bottom Line, co-authored by John Elkington and Jochen Zeitz. “

Well done to John and the team.

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1 – The Case for Refocusing on Product (Rather than Corporate) Sustainability

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Full Product Transparency bookExcerpt from the book ‘Full Product Transparency

1. The corporate responsibility beauty contest hasn’t taken us that far

WE ARE AT LEAST TEN YEARS ALONG the corporate sustainability journey now, so what really significant changes have we achieved?

Perhaps the business world has focused on the wrong tasks? Could it be that, despite all the carbon neutrality claims, hundreds of Global Reporting Initiative A+ reports and sustainability teams of ten or more people, companies have still not radically redesigned their core products and business models? The answer is that there has been far too much focus on companies wanting to look good, and not nearly enough attention paid to actually performing well. The beauty contest It’s in the blood of companies to compete, to strive to be better than their peers.

That has been the reason for the success of corporate sustainability, because businesses like to vie with each other to be the best in this area. But the end result of all the competition has been to encourage companies to give the impression of looking good while barely changing their ‘business as usual’ model. It’s hard to change the direction of a business, especially in the short term, but the corporate sustainability beauty contest has nonetheless been characterised by a disappointingly low level of achievement.

An entire industry has been created around this beauty contest, including thousands of labels, corporate responsibility (CR) report design agencies, boutique assurance providers, hundreds of awards with infinite categories, materiality matrix mavericks, investor questionnaires consultants, professional stakeholders looking to ‘engage’ with companies and all manner of membership organisations offering support networks for a hefty fee. Service-provider directories in the field typically feature more than 500 such organisations offering to help businesses look more virtuous than their peers – what the marketing guys call ‘differentiation’.

The problem with all this activity is that looking more virtuous doesn’t have anything to do with being more sustainable.

We in the sustainability movement need to ask ourselves honestly whether we are pushing for actual change or whether we are merely helping companies to gloss over big issues by making them compete in irrelevant contests? We offer companies the prospect of being able to make ‘100% natural’ products or to be the first company in their sector to become ‘carbon neutral’. In short, we have been tremendously innovative in coming up with fairly meaningless stuff that is easy and quick to implement, or that can deliver nice stories and marketing claims, but frighteningly ineffective at producing anything that will affect actual performance.

And astonishingly, CEOs are quite happy about their performance.

A 2010 Accenture survey of global CEOs put the last nail in the coffin of CR as it stands. It found that 81% thought sustainability issues were fully embedded into the strategy and operations of their company. Yes, FULLY EMBEDDED! It’s not a joke. It’s actually quite sad that the most senior people don’t get it.

Please someone explain to them that having a CR team reporting to public affairs with a nicely designed 150k report with some cherry-picked case studies and a set of qualitative targets plus a few quantitative targets on quick wins is not ‘fully embedded’! Fully embedded means sustainability is fully taken account of in all the products of the company. You are redesigning your products, your business models, your entire value chain. Yet there is no company in the world that has achieved this. The sustainability movement should brutally tell CEOs that making wishy- washy claims such as ‘Sustainability is part of our DNA’ is just wrong.

Seventy-two percent of CEOs in the same survey felt the strongest motivator for taking action on sustainability issues was ‘strengthening brand, trust and reputation’. Well, here we have the reason we are trapped in this rather useless beauty contest.

Prepare yourself for the next sustainability phase: Full product transparency.

Somebody needs to speak out if we are to move towards something more meaningful. We need a proper comparative benchmark, so that companies can compete on what really matters – and so that the sustainability consultancy industry can sell properly useful transformative services to these companies. This book is aimed at providing this benchmark: products instead of companies.

So the next phase in sustainability has to be truly embedded by being focused on the product. We need to understand clearly the total footprint of a product throughout its lifecycle – that must be the starting point.

There has been some focus at product level but wrongly headed: Green labels.

You may well be asking, ‘Why does it have to be this complicated to choose the most sustainable product? Can’t I just look for a product with a green label?’

It’s not surprising people look for shortcuts to help them decide. After all, few of us have the time to study every purchase we make. That’s why there have been so many people, from gurus, to NGOs, to certification sharks, to industry associations inventing so many lucrative labels that offer ‘quick assurance’ about product sustainability credentials.

But when you look carefully at how some labels are administered, you realise how flawed they are. Most are too easy to obtain, which is obvious because the easier your label is to get, the bigger your market becomes. Most labels are very narrow in scope, measuring the easiest things to measure rather than the big issues. Many lack independent certification or may even be administered by the manufacturers themselves. Many labels duplicate each other, confusing clients and obliging manufacturers to certify the same product several times. Unfortunately, some of the best marketed labels are the least robust.

Today nobody certifies whether a yoghurt or a burger is good for your health. You just get the calories and the nutrition facts and you judge.

This is what this book is arguing for: the environmental impacts of products – Full Product Transparency.

… please revisit for more excerpts from the book ‘Full Product Transparency‘ – or rent/buy by clicking here

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Book ‘Full Product Transparency’ – Author Profile

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Ramon Arratia - Sustainability DirectorOver the next few months I will publish excerpts from my book ‘Full Product Transparency’ on this blog to encourage the use of its content, and spread the message that we need to ‘cut the fluff’ out of sustainability communications, dispel partial truths, and constantly push for stronger corporate responsibility through education and regulation.

You can rent or buy ‘Full Product Transparency’ via this link

Here is my Author profile should you not know who I am or what I do. Thank you so much for taking the time to come to this blog and read the book. We would obviously appreciate your support by spreading the word, and all feedback gratefully received.

 

” RAMON ARRATIA is a sustainability director with 13 years of practical experience in corporate positions at multinational companies such as Interface, Vodafone and Ericsson.

He was named by The Guardian newspaper as one of the world’s top sustainable business tweeters. He is a strong advocate of product sustainability through his popular blog (you’re here!) and gives 50 speeches a year on the subject. He campaigns for stronger and more efficient European regulation based on product standards, for revisiting corporate sustainability reporting and for many years he led the ‘Cut the Fluff’ campaign against labels, certificates, partial truths, marketing claims and all the components of the old sustainability beauty contest.

Ramon has an MBA from Warwick Business School, a MSC in Quality and Environment from Spain and a degree in chemistry. This mixture of business and technical education has given him a privileged perspective to understand both the geeks (LCA practitioners, academics, engineers) and the geezers (marketing, PR, sales, sustainability consultants). This book has been clearly written with a hybrid ‘geekzer’ mindset. “

 

‘Full Product Transparency’

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The Cambridge Econometrics wind report for WWF and Greenpeace: modern environmental campaigning

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I loved the way WWF and Greenpeace have campaigned on the wind versus gas debate in the UK. This is modern campaigning and shows how sophisticated the environmental movement is becoming. It’s not just telling mum to save the tigers or making a scene at Westminster, it’s proper public policy debate.

Here is some analysis of what I think went well and why I think it’s a recipe for the future:

1. Commission a proper, authoritative piece of research by a reputable consultant. 

In this case, a 70 page report from Cambridge Econometrics, has been written illustrating being transparent with the scenarios, as well as showing real macroeconomic figures with a proper sensitivity analysis. Download the full report here. It’s worth it!

2. Partnership. NGOs working together, sharing resources and rewords.

3. Wider alliance.

They got the Green Alliance involved, the Aldersgate Group, and quotes from several businesses.

The same week the report was published, The Green Alliance wrote the report The Future of Gas Power.

4. Engage businesses.

WWF asked several businesses to provide quotes to support the research. 11 people from key businesses contributed.

The Green Alliance asked Jim Watson, Director of the Sussex Energy Group, to talk about why gas can’t solve the UK’s energy woes. Here is their blog.

5. Brilliant findings bring brilliant PR

The Guardian:  Substantial deployment of offshore wind by 2030 would boost growth and create 70,000 more jobs than gas.

 

 

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