2012-12-141

DRAFT

Business Plan for the CEN Workshop

CEN/WS Framework for SustainValue - Sustainable Value Creation in manufacturing networks

Workshop

(to be approved during the Kick-off meeting on 2013-DD-DD)

1 Date of updating, to be inserted by the latest editor

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Table of Contents

1 Status of the Business Plan ...... 5 2 Background to the Workshop ...... 5 2.1 General ...... 5 2.2 The SustainValue project funded under the FP7 program of the European Commission .... 6 2.3 Motivation for the CEN-Workshop ...... 6 2.4 The market environment ...... 7 2.5 Existing standards, standards related activities and documents ...... 8 3 Workshop proposers and Workshop participants ...... 9 4 Workshop scope and objectives ...... 9 4.1 WP 1: Governance and business architecture ...... 11 4.2 WP 2: Business models in sustainable manufacturing value networks ...... 12 4.3 WP 3: Life-cycle-based products and service development ...... 14 4.4 WP 4: Sustainability performance standards ...... 18 5 Workshop Program ...... 19 5.1 Work Plan ...... 19 6 Workshop structure ...... 21 6.1 CEN Workshop Chairperson ...... 21 6.2 CEN Workshop Vice-Chair ...... 21 6.3 CEN Workshop Secretariat ...... 21 7 Resource requirements ...... 22 7.1 Costs of the CEN Workshop Secretariat ...... 22 7.2 Participation and Registration Fee ...... 22 8 Contact points ...... 23 Annex A – List of Workshop proposers and participants ...... 23 Annex B – Relevant standards and standards committees ...... 26

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Figures

Figure 1: Project Overview WP 1 – WP 4 ...... 10 Figure 2: Model for sustainability governance in manufacturing networks...... 12 Figure 3: Development framework ...... 15 Figure 4: Methodology framework ...... 16 Figure 5: Framework ...... 17

Tables

Table 1 – Status of this Business Plan ...... 5 Table 2 – Contact point on the part of the CWA proposers ...... 9 Table 3 – Work Schedule ...... 20 Table 4 – List of Workshop proposers ...... 24 Table 5 – List of Workshop participants ...... 25 Table 6 – Select list of existing standards ...... 26

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List of Abbreviations and Acronyms

CCMC CEN/CENELEC Management Center

CEN Comité Européen de Normalisation European Committee for Standardization

CLC CENELEC European Committee for Electrotechnical Standardization

CWA CEN Workshop Agreement

DIN Deutsches Institut für Normung e. V. German Institute for Standardization

SustainValue Sustainable value creation in manufacturing networks

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1 Status of the Business Plan This Business Plan currently has the status as presented in Table 1.

Table 1 – Status of this Business Plan

Document Type Actions required Status

Initial Draft Business Plan to be further developed, prior under preparation to submission for approval

Draft Business Plan to be approved at the Kick-off meeting of the Workshop

Business Plan Approved at Kick-off

2 Background to the Workshop

2.1 General

The increasing demands for sustainability have created new challenges and emerging opportunities for society and for business. To be successful, manufacturers must be pro-active and creative in thinking about the opportunities that the sustainable economy will present to develop new products and markets and optimize their value networks according to the new sustainability criteria. The overall goal of SustainValue is to develop industrial models, solutions and performance standards for new sustainable and more performing production and service networks.

The project will develop governance and business models, a new methodology to support sustainable life cycle decisions and sustainability assurance performance standards for complex business processes in integrated production and service networks.

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2.2 The SustainValue project funded under the FP7 program of the European Commission

New industrial models for a sustainable and efficient production is what the SustainValue project funded under the FP7 program of the European Commission has set as its goal.

The specific objectives of the SustainValue project are the following:

To design governance models and business architectures for sustainable value adding production networks.

To deliver a proven set of tools and methods for sustainable and value-adding business- modelling and network-analysis and to provide a methodology for developing sustainable solutions.

To develop a governing framework for sustainability performance standards across integrated product-service value networks and verification processes.

To test and validate the developed tools and methods in realistic industrial use cases.

The research on existing industrial models for a sustainable and efficient production showed that the SustainValue approach was unique for the industrial models on the market and industrial companies were very curious to work with this kind of industrial model.

2.3 Motivation for the CEN-Workshop

Contribution to standardization activities had been specified as one of the goals of SustainValue.

The objectives concerning standardization were refined when the project entered implementation:

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development of standards and contribution to standardisation activities ongoing in the European Committee for Standardization

This approach goes beyond standardization being considered as an instrument for the dissemination of the research results, but it is integral part of the overall strategy of the project.

The organizational structure of the project reflects this and includes a task "Standardization" where all activities related to standardization work are bundled.

Standardization is needed when the same methodology and tools for sustainable business models are used across borders in diverse national contexts as done in SustainValue, while comparability of results is essential when evaluating e. g. overall sustainable value savings potentials in Europe.

Last but not least, SustainValue can deliver considerable assets to ongoing standardization and push knowledge and expertise, thus enhancing and accelerating standards work.

The following result of SustainValue has been identified as exploitable knowledge for standardization:

A standardized recommendation for action for the measurement, management and verification of sustainability performance in complex manufacturing / production settings, as a critical mean to better manage challenges and to capitalize on opportunities.

As to which of the knowledge is to be used for the development of the CWA, refer to chapter 4.

2.4 The market environment

The following stakeholders are considered as target groups for the models, methods and tools developed in the project:

Operators / Owners of manufacturing / Production facilities / systems

Original equipment manufactures

Technology developers and Service providers

R & D community

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2.5 Existing standards, standards related activities and documents

The SustainValue project provided the opportunity to assess the landscape of existing standards, ongoing standardization activities as well as future work.

An overview of selected standards and frameworks can be found in Annex B.

There are several specific and more general weaknesses in existing approaches. One common property of all standards and frameworks is the clear focus on the organization as entity of interest. The system boundaries, however, have been defined as comprising the manufacturing network. Networks have certain characteristics that do influence firm performance just like firms can influence the performance of other firms or of the whole network. There is no clear reference to network properties in any of the standards or frameworks discussed. Furthermore, there is clear bias towards environmental aspects while social aspects of sustainability play a minor role.

The most important standards and frameworks for the project are:

DIN EN ISO 14001 Environmental

DIN EN ISO 14031 Environmental Performance Evaluation

DIN EN ISO 14040 series Environmental Management – Life Cycle assessment – principles and framework

DIN EN ISO 14064-1 Greenhouse gases - Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals

DIN EN ISO 14064-2 Greenhouse gases - Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements

DIN EN ISO 14064-3 Greenhouse gases - Specification with guidance for the validation and verification of greenhouse gas assertions

DIN EN ISO 50001 Energy management Systems – Requirements with guidance for use (old ISO 16001:2009 – “Energy management systems and guidelines for using”)

DIN ISO 26000 Guidance on Social Responsibility

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SA 8000:2008 Social accountability

EMAS: 2009 Eco-management and audit scheme (Note: In the following report we refer to the third and the last edition EMAS III published by the European Community on December 2009)

GRI: 2011 Global Reporting Initiative (Note: The third generation of GRI’s Sustainability Reporting Guidelines is G3.1 Guidelines launched in March 2011).

3 Workshop proposers and Workshop participants

Table 2 – Contact point on the part of the CWA proposers

Contact point Teuvo Uusitalo

1 Company VTT

Tekniikankatu 1

P.O. Box 1300,

FI-33101 TAMPERE,

Finland

2 Contact data Tampere Office: +358 40 835 6643 [email protected]

4 Workshop scope and objectives

This CEN workshop is proposed based on the scope, objectives and the outcomes of the Sustain Value project.

The overall goal of Sustain Value, as aforementioned, is to develop industrial models, product and service solutions and performance standards for new sustainable and more performing production and service networks. The project will develop governance and business models, a new methodology to support sustainable life cycle decisions and sustainability assurance

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performance standards for complex business processes in integrated production and service networks.

Thus the scope of the proposed CEN-workshop is to take the necessary initial steps towards the development of a generic standard applicable across various industrial sectors based on the outcomes of the Sustain Value project.

The underlying objectives are:

. Compile the outcomes of various work packages of the Sustain Value project that can help support further actions towards the standardization process related to Sustainable manufacturing.

. Disseminate the draft standardization content to a suitable external group, particularly inclusive of industrial organizations from different sectors, to receive inputs on the content and potential other ideas / suggestions of practical relevance.

. Review and refine the content of the draft with reference to the feedback received from the external participants.

Figure 1: Project Overview WP 1 – WP 4

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4.1 WP 1: Governance and business architecture

Since manufacturing activities are presently organized through networked processes, new models for network governance are needed in order to ensure sustainable development and performance. The main differences between the company and network governance models are related to legal aspects, decision making processes and control mechanisms.

Companies are legal entities with their own goals and their decision making is based on hierarchical structures (control governance) inside the company whereas networks consist of independent actors, who have their own targets and decision making models. These models should enable clear identification of network actors and stakeholders, who are influencing and can be influenced by the sustainability of the products and services during their life-cycle.

The governance model developed in the project illustrates sustainability governance within a manufacturing network as a process for guiding the activities of all actors involved toward sustainable development and performance over a product's life cycle.

There are three main tasks of sustainability governance: analyzing, organizing and developing as illustrated in the figure below.

Through these, the governance model illustrates a process that integrates

i) requirements and commitments of stakeholders within the manufacturing network as well as

ii) business models and the self-interest of manufacturing-network companies.

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Figure 2: Model for sustainability governance in manufacturing networks.

4.2 WP 2: Business models in sustainable manufacturing value networks

The transition towards sustainable manufacturing will require a significant shift in the way businesses are conceived and operated. This involves firms to embed sustainability in the proposition, delivery and creation and capture of value of the business model. Literature and practice review highlight the need for business model innovation to embed sustainability into the core of the business purpose and operations. However, business model innovation for sustainability is incremental, ad-hoc and dependent on a visionary leader. If sustainability is to be realized then there is a need for a clear process and tools for sustainable business modelling that will assist manufacturing firms in delivering sustainability.

The existing business models and modeling activities are mostly based on creating, delivering and capturing economic value, with limited or no attention to environmental and social value and focus is almost exclusively on customers’ and shareholders’ interests. To integrate sustainability into the business purpose a comprehensive consideration of multi-stakeholder view of value

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across the manufacturing network is necessary to rethink the value proposition of the firm and tools that explicitly include this consideration is seen as being integral towards business models delivering for sustainability.

A sustainable business modeling process and a portfolio of tools to accompany the process is proposed by WP2 based on state-of-art and state-of-practice review, to assist firms in the analysis of sustainable business models and manufacturing networks.

Five step sustainable business modeling process and tools:

Proposed steps Proposed tools and methods Expected outputs Step 1 - Purpose of the System SWOT analysis – Reason for being in the business SUSPRONET business, approach and drivers PESTLE/STEEPLED for sustainability, products and Sustainability continuum service bundles, industry- related needs, norms and opportunities Step 2 – Identify Stakeholder mapping - LC Potential stakeholder types stakeholders Sustainability analysis and what do they value, (actors and sustainability sustainability priorities issues mapping), Value network analysis GRI guidelines, Sustainability Accounting Standards Board (industry- specific) Scenario Analysis (WP3) Step 3 - Explore and Value mapping tool Value proposition for a firm and develop new opportunities Value framework, Value its stakeholders – value for sustainable value tree analysis opportunities proposition Blue ocean strategy – value innovation Step 4 - Concept generation Business model archetypes Transformation and/or and selection Systems dynamics tool development of the value (WP3) proposition Sustainability impact calculation tool (WP3)

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Step 5 - Define and develop Osterwalder and Pigneur Key activities, key resources, the value creation and canvas key partners, key channels, delivery system, and the PSS for value creation key mind-set and the value value capture mechanism Systems dynamics tool exchanges and value capture (WP3) for the stakeholders LC costing tool (WP3)

4.3 WP 3: Life-cycle-based products and service development

The overall goal of the work package 3 is to create a development methodology for the creation of sustainable solutions in a network or in companies. The procedure will support companies in developing new sustainable solutions.

There are a lot of development methodologies which describe how to develop new products or services. Even approaches which describe the development of sustainable solutions can be found in literature (cf. D3.1, http://www.sustainvalue.eu/publications.htm). However the different approaches show different focuses on the development. Some approaches like the product development approaches are very technical related. Otherwise some service development methodologies are very conceptual. Other approaches focus only on the sustainability aspect but neglect other important aspects. In the deliverable D3.2 a matching between the requirements (concerning sustainability and for the development methodology) has been presented (cf. D3.2, page 22). On the one hand this table shows that there are plenty of approaches. On the other hand it shows that a lot of different tasks must be considered when developing sustainable solutions instead of singular products or services. When new sustainable solutions are designed plenty of actors in a network (with internal and/or external actors) are affected by the new solutions. During the whole life cycle of the new solutions occur plenty of requirements to this solution, beginning from the design phase, up to the operation phase until the recycling or re-usage phase of the product.

Interfaces to all involved development and planning procedures of other stakeholders are needed. Therefore a development framework is aspired at the end of Work package 3.

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The development framework is structured into 4 main phases. The first phase is the idea phase where goals, aims and new ideas are being developed. Beside the ideas the dynamics environment of the new solution (markets, laws, technologies etc.) must be considered within this phase. The second phase is the concept phase. Here the selected ideas will be developed further and a concept of new sustainable solution is detailed. This important phase has to consider a lot of different requirements which occur from the whole life cycle. So this phase possesses a lot of interfaces to different actors (like manufacturing or logistics planning) during the development. The third phase is the implementation phase. The main focus of this phase is a detailed planning of the piloting and the role out of the new solution into the market. During the last phase (so called market phase) all services, retrofits, upgrades, optimizations up to the re- usage or recycling are supported here. Even the question if the solution is still "sustainable" or if the solution still satisfies the stakeholder needs must be verified continuously.

Figure 3: Development framework

The methodology framework combines different methodologies from different perspectives which occur in complex networks like value networks or within a single company. These different perspectives are described with the help of defined "dimensions". The figure below illustrates the

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development framework.

Figure 4: Methodology framework Dimensions which are defined:

. Central Initiation

o Strategy Development

o Business Model Development

. Conceptual Dimension (What?)

o Technology Development

o Product-Service-System Development

. Product Development

. Service Development

. Operational Dimension (How?)

o Sourcing / Purchase Planning

o Manufacturing Planning

o Distribution & Logistical Planning

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o Service & Spare Parts Operational Planning

. Life Cycle Services (e.g. Maintenance, Operator Models & Service Contracts, Spare Parts, Asset Management)

o End-of-Life / Recycling Planning

The framework combines different methodologies from different dimensions. Within these dimensions the single methodologies are summarized. Additionally the interfaces to other dimensions (different functions in company, other stakeholders etc.) are revealed. Further important gates which must be reached during the development procedure are described. With the help of this kind of checklist a complete and reliable development methodology can be ensured.

Figure 5: Framework

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The goal of the standardization workshop is to validate and justify the proposed development methodology within a mixed consortium. On the one hand industrial partners should validate the practical relevance of the process. On the other hand the scientific partners should ensure that the process includes all important steps and aspects to realize a sustainable solution.

4.4 WP 4: Sustainability performance standards

Sustainability has gradually grown as an industrially valuable concept. There is a wide interest in measuring and managing sustainability performance in many sectors. A standardized framework to assess sustainability performance of dispersed production networks, however, is yet to be found. Existing initiatives either focus on very specific aspects of sustainability, focus on higher organizational level, or do not support sustainability considerations for complex industrial settings where a number of companies share values and risks. Therefore, there is a growing need for standardization of sustainability performance. This will enable firms, who collaborate in manufacturing and other sectors, to assess their sustainability performance in a standardized way; this will eventually enable to be in better control of complex business operations, keeping into account their effects on economic, environmental and social aspects.

The CEN Workshop will lay out the fundamental design and development of a standardized approach for the measurement, management, and verification of sustainability performance in complex manufacturing settings. The initial framework to help guide this was described in D4.1 of the SustainValue Project.

The Scope is dividing into 3 major elements: Business framework, performance measures, and verification methodology. The scope is now used as target to drive the development of an integrated platform for measuring sustainability in manufacturing value networks: this is the outcome expected from D4.2 of the SustainValue Project.

A key requirement is that the platform – developed in D4.2 – integrates the relevant specifications and measures already present in existing standards and frameworks. Accordingly,

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the user of the platform may (i) reuse all the existing knowledge, without reinventing the wheel with new measures or approaches, and (ii) make a benchmark through a set of indicators commonly adopted in industry. The existing standard and frameworks will be empowered by providing a new perspective according to the system boundaries focused for the assessment, namely in order to consider value creation and risk mitigation in complex manufacturing settings.

The objective is to provide a standardized approach that enables systematic sustainability performance assessment in the manufacturing context. The framework is intended to close the gap between existing frameworks focusing on individual organization or specific area of interest without regarding the interdependence and multi-dimensionality in value creation and risk mitigation in complex manufacturing settings.

5 Workshop Program

5.1 Work Plan

The deliverable of this workshop consists of one CEN Workshop Agreement; it shall be published in English.

As funding originates from public sources, an external comment phase is foreseen; for this purpose the draft version of the CWA shall be made publicly available for 60 days on the CEN website http://www.cen.eu/CEN.

From this website, potential commentators are guided through the commenting process. All comments shall be submitted to the secretariat endorsed at the kick-off meeting and indicated on the website related to the commenting phase.

Anyone can comment on the draft version of the CWA. All comments received will be considered by the chairperson preliminary to the meeting of participants of the workshop where each comment received shall be presented, discussed and resolved. It shall depend on the number of

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comments received if this meeting shall coincide with the final meeting of the workshop where the final version the CWA shall be endorsed by parties present.

Any meeting except for the kick-off and the final meeting can be organized as virtual meetings. If the comments received are only from parties registered for the workshop (i.e. not from parties not registered, but interested in the issue) the endorsement of the CWA can be handled in a voting booth or any other means of written approval or disapproval of registered parties.

The time schedule for the workshop is being influenced by the runtime of the SustainValue project. Table 6 gives an overview of the schedule of the Workshop.

Table 3 – Work Schedule

2012 2013

Activity Action 01 02 03 04 05 06 07 08 09 10 11 12

Development and Consultation of Business Plan

Public availability of Business Plan

Kick-off Meeting

Elaboration of Draft CWA

Public Enquiry of CWA

Resolving comments

Endorsement of final version of CWA

Final version sent to CCMC for publication

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6 Workshop structure

This workshop shall be led by a chairperson and in case of absence or unavailability, by a vice- chair. The workshop secretariat shall be responsible for the management of the workshop.

6.1 CEN Workshop Chairperson

A proposal for the chairperson will be made by the Workshop proposers; he/she or any other candidate nominated during the period of publication of this Business Plan or at the Kick-Off will be approved at the Kick-off meeting by the parties present. His / her responsibilities include:

Chairing the CEN Workshop meetings,

Representing the CEN Workshop in outside meetings in cooperation with CCMC and with the Workshop secretariat,

Monitoring the progress of the CWA,

Interface with CCMC regarding strategic directions, problems arising, external relationships, etc.

6.2 CEN Workshop Vice-Chair

The Workshop Vice-Chair shall be appointed in the Kick-off meeting. The Vice-Chair shall support and assist in all responsibilities outlined for the Chairperson. In the absence of the Chairperson, the Vice-Chair will represent the CEN Workshop at outside meetings in cooperation with CCMC and will interface with CCMC regarding strategic directions, problems arising, external relationships etc.

6.3 CEN Workshop Secretariat

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The CEN Workshop Secretariat is providing the formal link to the CEN system. The following main activities will be carried out by the Workshop Secretariat:

Organizing CEN Workshop plenary meetings,

Producing CEN Workshop minutes and action lists,

Forming the administrative contact point for CWA project,

Managing CEN Workshop attendance lists,

Managing CEN Workshop document registers,

Following-up action lists,

Assisting Chairperson in monitoring and following-up of electronic discussions – in case the CEN Workshop is mainly working by electronic means,

Administrating the liaison with relevant CEN/TCs, if applicable.

7 Resource requirements

7.1 Costs of the CEN Workshop Secretariat

The administrative costs of CEN Workshop Secretariat and other logistical support will be covered by resources from the FP7 project SustainValue.

The copyright of the CWA shall be with CEN.

7.2 Participation and Registration Fee

The registration and participation at this CEN Workshop is free of charge; each participant shall bear his/her own cost for travel and subsistence.

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8 Contact points

Proposed Chairperson Proposed Vice-Chairperson

NN NN Company Company address address

T T

F F xx@nn xx@nn http://..... http://.....

CEN-CENELEC Management Centre Proposed Secretariat

Name Ms Nicole Adomeit Programme Manager Project Manager CCMC DIN Deutsches Institut für Normung e. V. Avenue Marnix, 17 Am DIN-Platz B-1000 Brussels Burggrafenstr. 6 10787 Berlin Tel.: +32 2 550 xxxx Tel.: +49 30 2601 2543 Fax: +32 2 550 xxxx [email protected] (e-mail) www.din.de (Web)

Annex A – List of Workshop proposers and participants

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This Workshop has been proposed by a number of the SustainValue partners, and will result in a CEN Workshop Agreement (CWA). Other interested stakeholders are welcomed to register for membership in accordance with the CEN Rules for CEN Workshops.

Table 4 – List of Workshop proposers

Company Name

1 VTT Technical Research Centre of Teuvo Uusitalo Finland Helena Kortelainen Markku Reunanen

2 POLIMI Marco Macchi Maria Holgado

3 University of Cambridge Steve Evans Padmakshi Rana Samuel Short

4 UiS J.P. Liyanage

Jakob E. Beer

5 FIR Christian Grefrath Dirk Wagner

6 FIDIA Daniele Panarese

7 Riversimple Nicolas Sergent

8 CLAAS Christian Schaperkötter

9 ELCON Kari Frankenhaeuser Juha Raukola

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Table 5 – List of Workshop participants

Company Name

1

2

3

4

5

6

7

8

9

10

n

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Annex B – Relevant standards and standards committees

Table 6 – Select list of existing standards

Standard Title Status Committee

DIN EN 16271:2011 Value management - Functional expression of the need and functional published CEN/TC 279/WG 3 performance specification - Requirements for expressing and validating the need to be satisfied within the process of purchasing or obtaining a product

DIN EN ISO 14006 Environmental management systems - Guidelines for incorporating published ISO/TC 207/SC1/WG 4 ecodesign (ISO 14006:2011);

DIN ISO 26000 Guidance on social responsibility published ISO/TMB WG

DIN EN ISO 50001 Energy management systems - Requirements with guidance for use published ISO/TC 242

SN ISO 22301 Societal security - Business continuity management systems – published ISO/TC 223 Requirements

DIN ISO 20121:2011 Event sustainability management systems - Requirements with guidance for published ISO/TC 250 use

DIN EN ISO 14045 Environmental management - Eco-efficiency assessment of product systems published ISO/TC 207/SC5/WG 7 - Principles, requirements and guidelines

ISO 13315-1 Environmental management for concrete and concrete structures - Part 1: published ISO/TC 71/SC 8

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General principles

DIN EN ISO 14005 Environmental management systems - Guide for the phased implementation published ISO/TC 207/SC1/WG 3 of an environmental management system - Including the use of environmental performance evaluation

DIN EN ISO 14031 Environmental management - Environmental performance evaluation - published ISO/TC 207/SC 4 Guidelines

EN ISO 9004:2009 Managing for the sustained success of an organization - A quality published management approach

EN ISO 14004:2010 Environmental management systems - General guidelines on principles, published systems and support techniques

EN ISO 14040:2006 Environmental management - Life cycle assessment - Principles and published framework

EN ISO 14044:2006 Environmental management - Life cycle assessment - Requirements and published guidelines

ISO/TR 14049:2000 Environmental management - Life cycle assessment - Examples of published application of ISO 14041 to goal and scope definition and inventory analysis

ISO/TS 14033 Environmental management - Quantitative environmental information - published ISO/TC 207 Guidelines and examples

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DIN EN ISO 14001 Environmental management systems - Requirements with guidance for use published ISO/TC 207/SC 1

DIN EN ISO 14050 Environmental management - Vocabulary published ISO/TC 207

DIN EN ISO 14064 Greenhouse gases Part 1 - 4 published ISO/TC 207

VDMA 34160 Forecasting Model for Lifecycle Costs of Machines and Plants published VDMA

SA 8000 SOCIAL ACCOUNTABILITY 8000 published SAI

GRI Guidelines Sustainability Reporting Guidelines published GRI

EMAS: 2009 Eco-management and audit scheme published European Commission

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