eco smart design achieve more with less

MiniGuide A Business Guide to Product

This publication forms part of the Eco Smart Design Programme – a sustainable business initiative developed and administered by Environmental Systems and Solutions, the environmental wing of the Craigavon Industrial Development Organisation. Eco Smart Design Project Management: Ulrike Ebli, CIDO Ltd, Co Armagh ESD Mini Guide principal author: Helen Lewis. Graphic Design: GAIA Marketing & Design Ltd, Belfast BT16 1QT © Craigavon Industrial Development Organisation and Product Ecology Pty Ltd, November 2005 MiniGuide 8. 6 5. 4. 3. 2. 1. CONTENTS Publication details Where canIgo for more information? What doIneedtodo? Is Product Regulated? Stewardship What are thebenefitstomybusiness? What isProduct Stewardship? What isanEcoSmartDesignMiniGuide? 1 MiniGuide can enhance its business opportunities through ‘eco smart’ approaches andtools. can enhanceitsbusinessopportunitiesthrough ‘ecosmart’ wetrustMost importantly that itprovides somepracticalinsightsandtipsonhowyour company We hopeyou toyour findthisESD Mini-Guideusefulandrelevant environmental activities. iscentral. advantage emphasis onbuildingandmaintainingcompetitive more proactive andinnovative directions more that thanjustcost reduction. canachieve The These approaches alsorecognise theopportunitytomovebeyond complianceanddemonstrate major investmentandinterest worldwide amongleadingproducers, brandsandentrepreneurs. Such approaches toimproving environmental are qualityinproducts attracting andservices andacatalyst for ascommercial businessdevelopment. drivers toshowhowcompaniescanuseenvironmental begin performanceThe Mini-Guide’s and • ABusinessGuidetoEUDirectives • ABusinessGuidetoLifeCycle Thinking andLifeCycle Assessment • ABusinessGuidetoEnvironmental Communications • ABusinessGuidetoProduct Stewardship The ESDMini-Guideseriescomprisesfour separate publications: for Ireland/Northern Ireland andtheInternational Fundfor Ireland. The EcoSmartDesignProgramme isfundedandsupportedbytheEUINTERREGIIIAProgramme Monaghan CountyEnterprise Board, PtyLtd,Australia. CoMonaghanandProduct Ecology byEnvironmental Systems&Solutions/CIDO,The Programme hasbeendeveloped CoArmagh. Ireland. NorthernIreland for andtheRepublicof primarily SMEsintheCross Border of Region supportinitiative thebroader ESDProgramme -anindustry areThe Mini-Guide’s partof A knowledge transferinitiative Design from EcoSmart readers wantingfurtherinformation. Guide provides detailedinformation sources, websitesandadditional references for those eachMini- limitations messagesincluded.Mostimportantly are outlinedandprecautionary environmental andbusinessbenefitsassociated withtheapproach ortool.Where relevant reader-friendly definitionsandexplanationsEach ESDMini-Guideoffers aswelldescribing the environment andsustainability measures that are product andconsumeroriented. coverage, there seemstobegrowing momentum across theEUandinternationally, on Tracking. Whilethere othertopicsworthyof Life Cycle are Thinking several andRegulatory environmental approaches includingProduct Stewardship, Environmental Communications, istohighlightmore theMini-Guide’s proactive andbusinessoriented The emphasisof commercial andindustrialactivity.other areas of to thecontentisrelevant on product muchof orientedenvironmental strategies, however companies maximisetheirenvironmental performance andcredentials. TheGuidesare focused The ESDMini-Guidesprovide key toolsandapproaches anintroduction toseveral that canhelp DesignMini-Guide 1. What isanEcoSmart 2 MiniGuide product recovery ontheproductproduct manufacturer. recovery orphysicalresponsibility toolusedbygovernments for toplace financial,legal EPR isapolicy theproductalthough EPRhasamuchgreater lifecycle. focus onthe post-consumer stageof (EPR), ‘Extended Producer Responsibility’ linkedProduct isclosely totheideaof stewardship andrecyclers. endusers suppliers, customers, Eachcompanyneedstoplay withitscompetitors, cycle. itspart,inpartnership life hasdirect aproduct’s companyonly controlindividual orinfluence overcertain aspectsof . ThisacknowledgesthatProduct an isalsobasedon‘shared stewardship responsibility’ throughout theirlifecycle. environmental matters, andensure that theirmaterials have minimalimpactontheenvironment material canprovide on suppliers technicalexpertiseandR&Dsupporttotheircustomers products, environmental materials managementintheproduction andcomponents.Raw of of organisation canprovide guidelinesfor toensure suppliers that meethigh standardsEvery they itsusefullife. at theend of hazardous ortoxic componentsandensure that your products are designedfor easyrecycling you are abrandownerwithresponsibility example,if forFor design,thenyou caneliminate in theproduct chain,you caninfluence thelifecycle. environmental impactsat otherstagesof thinking’. Dependingonyour ‘lifecycle position Product isbasedontheideaof stewardship lifecycle. impacts overthat product’s governments -sharerecyclers, andconsumers responsibility for minimisingenvironmental raw material product manufacturers, brandowners, andcomponent suppliers, andpackaging involvedinaproduct chain-including supply Product istheprinciplethat stewardship everyone 2. What isProduct Stewardship? 3 MiniGuide and itcangenerate products ideasfor orservices. new ordistributionactivities; packaging inyouropportunities for , increased efficiency lookingor marketing at way your functions,itcanprovide of products. anew Itopensup your business,notjustenvironment intoallaspectsof product isintegrated stewardship If Innovation products. products new may thanbuildingcompletely bemore costeffective products oftenmeansusinglessmaterial, for Remanufacturing examplethrough light-weighting. cansaveMany product activities you stewardship money. Designing environmentally responsible Cost savings Take-backor concernedconsumers. schemesfor your products can buildcustomerloyalty. inacrowded advantage marketcompetitive place,particularly amongenvironmentally aware company andyour products asenvironmentally responsible. Itcanprovide asource of your product initiatives canhelptomarket communication stewardship of yourEffective Marketing opportunities or CSRreport. initiatives shouldbecommunicatedstewardship through your website,environment report products. Product impactsof andincreasingly thisincludeslifecycle theiractivities, of community expectscompaniestotake responsibility for theenvironmental andsocialimpacts The (CSR). ‘corporate socialresponsibility’ Product isanimportantaspectof stewardship Corporate socialresponsibility business relationships. provide andvaluetoyour Thiscanstrengthen greater customers. your service longterm your products, you impactsof can taking possibletominimisethelifecycle action wherever be. Bystaying uptodate onproduct requirements stewardship andensuringthat you are While you may bythesepoliciesorregulations, notbedirectly affected your might customers Customer relationships more onerousrisk theintroduction regulations of inthefuture. programs thenyouin order you toavoid donotparticipate stricter regulations. involuntary If programs are byindustry beingpursued (see section3below).Insomecountriesvoluntary Participation istherefore insomecountriesfor someproduct becomingmandatory categories Governments throughout theworld are introducing product policiesorregulations. stewardship Compliance 3. What are thebenefitstomy business? 4. Is Product Stewardship Regulated? Product stewardship can take many forms, including: • Voluntary initiatives by individual companies; • Voluntary initiatives by groups of companies or an industry sector; • Co-regulatory programs that involve voluntary programs and back-up regulations to catch ‘freeriders’ or non participants; and • Fully regulated programs.

An example of a voluntary company program is Nokia’s take-back and program for mobile phones1. There are also many examples of collaborative, voluntary industry efforts to collect and recycle products at end of life, for example the establishment of Product Stewardship Australia to recover and recycle TVs2.

An example of a co-regulatory program is the Dutch Packaging Covenant which is a voluntary agreement between the Government and three industry associations representing the packaging supply chain. Participation in the Covenant exempts companies from individual statutory obligations under the Packaging and Packaging Regulations.

Product stewardship and EPR regulations are being introduced throughout the world. The initial focus in many jurisdictions has been on products which are seen as being problematic, particularly packaging, electrical and electronic products, and automotives. In Europe these are being introduced to implement, or are consistent with European Union Directives:

• The Packaging and Packaging Waste Directive3; • The Waste From Electrical and Electronic Equipment (WEEE) and the Restriction on Hazardous

MiniGuide Substances (ROHS) Directives4; and • The End of Life Vehicle (ELV) Directive5.

1. http://www.nokia.co.uk/nokia/0,1522,,00.html?orig=/Products/recyclingSearch.asp 2. http://www.productstewardship.asn.au 3. http://europa.eu.int/comm/environment/waste/packaging_index.htm 4. http://europa.eu.int/comm/environment/waste/weee_index.htm 4 5. http://europa.eu.int/comm/environment/waste/elv_index.htm 5 MiniGuide when you are looking for environmental designimprovements. materials andtechnologies expertknowledgeonnew canalsobeavaluableSuppliers source of Ensure that product isastandard stewardship agendaitemat regular suppliermeetings. there non-compliance. toimprove arewith suppliers their performance importantareas if of Collect information towork from onaregular basistocheckcompliance,andoffer suppliers • Take-back requirements for packaging • Having an accredited EMS;or hazardous ortoxic substances; • Useof • Recyclability ormaterials orproducts; This mightcoverissuessuchas: that Environment (includingproduct requirements). supports your Policy stewardship company’s theiroperationsfor inaway example that shouldmanagetheenvironmental they impactsof environmental guidelinestoyour whichsetsoutyourProvide suppliers, expectations, a setof Managing your chain supply procedures, whichhave animpact onproduct lifecycles. should bereflected inandenactedthrough your businessplanningprocesses andalloperational Your Environmental shouldincludeacommitmenttoproduct Policy stewardship. Thispolicy andstrategy Policy starting at thetop. your business, aspectof Product therefore stewardship needstobeimplementedinevery the environment. will manufacture products that meetconsumerneedsinaway that hasminimal impacton business.Thereand government isanincreasing expectations expectation of that companies businessmodelwhichisresponding tochangingcommunity Product isanew stewardship 5. What doIneedtodo? Source: Nestlé Sustainability Review (2002),www.nestle.com,Source: NestléSustainability Review p. 32 achieve them. orareensure complywiththeNestleCorporateBusinessPrinciples, workingto thatthey Thecompany to auditsmajorsuppliers continuous improvement inqualityandservice. SupplierrelationshipsNestlé standards. are benchmarked andevaluated todeliver Nestlé aimstodealonlywithreputable thatare industrialsuppliers willingtoapply Nestlé hasestablished systemsfor chainmanagement: supply Source: Huhtamaki, “Group Environmental www.huhtamaki.com Policy”, thepackagingproductitself. the recyclability of renewable and orrecycled materials, theuseof designed toachieve prevention atsource, hygiene andthehigheststandardsfor andsafety,functional properties are developed and requirements for We willensure while thatourpackagingproducts, meetingcustomers’ Huhtamaki’s Environmental states Policy that: 6 MiniGuide • • • • environmental communication mayThe aimsof include: Communicating withyour customers available for your product, work intheproduct withothers chaintoestablish one. to redesign productsstrategy where system this isimpedingrecovery. there isnorecovery If associations about orrecyclers anyproducts thatindustry you are notsure a about. Develop recovery. compostingorenergy Talk recycling, togovernmentremanufacturing, agencies, products, identifywhichproducts markets haveof existingrecovery through , your products environmental at evaluation end-of-life. Aspartof of importance onrecovery butstakeholders suchasgovernmentcycle, andenvironment organisations placeparticular Product aimstominimiseenvironmental stewardship impactsthroughout theproduct life life Managing products at endof • Undertaking ariskassessmentfor allnon-compliantproducts. materials or asearly inthedesignprocess onnew • Involvingsuppliers aspossibletoadvise • Introducing andmilestonequestionsintoyour environmental product checkpoints, reviews • Changingyour process product tomake development sure that theseguidelinesare used products companyspecificDFEguidelinestobeusedfor orredesign allnew of • Developing environmental allexistingproducts theirlifecycle toevaluate of • Having asystemfor review To implementDFEwithin your business,you shouldconsider: this wouldbedonethrough your Environment ManagementSystem. procedures. withexistingmanagementsystemsandproductbe integrated development Ideally To ensure that DFEisundertaken for continuously andconsistently allproducts, itneedsto process.Environmental theproduct issuesshouldbeconsidered development at allstagesof Design for Environment (DfE) reputation. Promoting your companyandyour products asenvironmentally responsible toimprove your increase sales;or Marketing your product toenvironmentally aware inorder orconcerned consumers to composting system; its life, for example inalitterbin,throughat arecycling program orhome theendof your product inaresponsible todispose of manner Encouraging andassistingconsumers Informing about your consumers theenvironmental product; attributes of technologies; and process; development theapprovaland compliancechecked process; asanormalpartof existing products impacts 14066/index.html Source: Philips, “EcoDesign”,http://www.philips.com/about/sustainability/section- consumption. and Energy products: anddisposal Weight, Recycling developing Hazardous substances,Packaging, Philips’ EcoVisionprogram requires focusing Green Areas onfive Focal when To product development. supporttheEcoDesignprocess,deal withallphasesof proceduresPhilips hasdeveloped for Environmentally ConsciousProduct Designthat 7 MiniGuide through its Product Stewardship Code of Practice. through itsProduct Codeof Stewardship ResponsibleCare program alsoprovides agood managementframework The chemicalindustry’s CleanerProduction 13:417-431.p418 Journalauditors." of J.6. Ammenberg, andE.Sundin(2004)."Products inenvironmental managementsystems:therole of elements, asshowninFigure 1. todealwithproduct-related(POEMS) specifically issues.Mostmodelsfor POEMShave similar Alternatively, a‘Product you OrientedEnvironmental coulddevelop ManagementSystem’ • Procedures toensure that ishandledwithintheEMS6. product development • Environmental and/ortargetsconcerningproducts; objectives and • Identifiedissuesinrelation toproducts processes andproduct assignificant development • ‘Product-related language intheirenvironmental policy; Manufacturing companieswhich are certifiedtoISO14001shouldhave: basis. EMS canalsoensure that suchasDFEare activities implementedonaconsistentandpermanent whichrelate activities toproducts acompany’s are notidentifiedoraddressed.impacts of An focusing onsite-specificimpactsisthat only important Thedangerof products or services’. the requirements inthe Standard impacts.Manyof relate ‘activities, cycle toacompany’s butISO14001shouldincludelife Most companiesfocus onsite-specificimpactsintheirEMS, Environment Management System(EMS) • Third party certification of environmental• Third performance, party certification for of examplethrough eco-labelling • Self-declared claimsandlogos byinternational (governed Standard ISO14021,andinsome Environmental claimsinclude: manuals oronwebsites. examplethePlasticsIdentification(for Code).Information canalsobeincludedinproduct orlogosas ‘madefrom tosignifyrecyclability 100%recycled fibre’ oridentifythematerial type yourabout product. theenvironmental Thismay benefitsof includesimpleinformation such Information canbe provided ontheproduct itself, for exampleonproduct labels orpackaging, Environmental communication cantake manyforms, includingproduct labelling andadvertising. environmental aspects; schemes. and cases bytradepracticeslegislation whichprohibits and misleadingadvertising); false index.html http://www.sony.net/SonyInfo/Environment/products/eco/ services”, Source: Sony, “Environmentally consciousproducts and information shownnexttothemark. material,and advertising with specificenvironmental on product manuals catalogues, users’ stickers, packages, information onenvironmental benefits.Themark isplaced Sony provides its own“ecoinfo” label onproducts with 8 MiniGuide 7 • Percentage of the weight of products soldthat isreclaimable theproducts’ theweightof • Percentage at theendof of and principalproducts andservices; • Significantenvironmental impacts of Initiative. GRIrecommends that environmental indicators shouldinclude: sustainability report. Themostrecognised international standard istheGlobal Reporting or guidelines availableThere a‘triplebottomline’ are toassist you plentyof to develop and ensuringaccountability tostakeholders suchasgovernments andthe community. your activities as anenvironmentally responsible organisation byimproving of thetransparency your products. reputationminimise theenvironmental Thiswill buildyour impactsof company’s andproactive thingsthat thepositive youInform are stakeholders about doingto allof Public reporting research relating anddevelopment toDFEorproduct• Costsof recovery. product initiatives; and stewardship voluntary • Costsof withproduct regulations; complying stewardship • Costsof Financial information: suppliers. • Environmental performance of regulated heavy substancesusedinproducts metalsininks,pigmentsor (e.g. • Amountof products• Estimated reused, percentage remanufactured, of or recovered afterinitial use; products sold; • Numberof • Solidwastes,airandwater emissions; andwater• Materials, usedtomanufacture energy products; Physical information: information mightinclude: EMA canhelpyou toplan,manageandreport onyour product program. Relevant stewardship R&Detc). compliance, costsof controls, regulatory etc) andfinancialinformation (environment wasteandemission related costssuchasof materials,information energy, (inputsandoutputsof water, products, by-products, emissions on information tosupportinternaldecisionmaking Thiscanincludephysical bymanagers. Managementaccountingfocusescategories: financialaccountingandmanagementaccounting. environment related trackcostsandrevenues intwo of costs.Accountingsystemsnormally stakeholders for information onenvironmental performance andtheincreasing importance Environmental byincreasing managementaccounting(EMA)isbeingdriven pressure from Environmental management accounting 8. Global Reporting Initiative (2002). Sustainability Reporting Guidelines.http://www.globalreporting.org/guidelines/2002.asp, p50 7. aPOEMSmodel Figure 1:Generalsteps of 8 continual improvement existingprocedures andproducts of aimingfor Revision 4. Audit/Evaluation useful lifeand percentage that reclaimed is actually . and solders); Journal of CleanerProduction 13:405-415. Journal of J. andexperiences." Ammenberg, andE.Sundin (2004)."Products barriers inenvironmental management systems:drivers, standards price,performancewith competitive andquality environmentally compatible productsDevelop 3. DFEprojects 1. Product specificenvironmental review • Market investigation process product development • Review DFEorganisation &capabilities • Review • Identifyenvironmental impacts/aspects 2. Responsibilities andprocedures • • • • development Establish involvedinproduct procedures for staff process product development Revise Establish targets policies,objectives, product development roles, responsibilities andauthoritiesforDefinition of 9 MiniGuide Guidelines.http://www.globalreporting.org/guidelines/2002.asp Global ReportingInitiative (2002).Sustainability Reporting Public reporting Global Ecolabelling Network, http://www.gen.gr.jp/ http://www.iso.org/iso/en/ISOOnline.frontpage declarations -Self-declared environmental claims(Type IIenvironmental labelling)”, International Standards Organisation (1999),“ISO14021:1999,Environmental labels and Environmental communication http://www.cia.org.uk/newsite/product_stewardship/introduction.htm Chemical IndustriesAssociation, “Product Stewardship”, study." Sustainable Product Journal Design(10):30-42. of andH.Brezet (1999)."Product-oriented environmental managementsystems:acase Rocha, C. CleanerProduction 13:417-431. Journal auditors." of role of J.Ammenberg, andE.Sundin(2004)."Products inenvironmental managementsystems:the CleanerProduction 13:405-415. andexperiences."Journalbarriers of J.Ammenberg, andE.Sundin(2004)."Products inenvironmental managementsystems:drivers, Systems -Requirements withguidancefor use,http://www.iso.org/iso/en/ISOOnline.frontpage International Standards Organisation (2004),ISO 14001:2004,Environment management Environment management systems http://www.ifac.org/Store/Details.tmpl?SID=1123595939318284&Cart=1129595193433777 Exposure Draft, Management Accounting, Accountants(2004),International GuidelinesonEnvironmentalInternational Federation of Environmental management accounting Publishing. global guidetodesigninggreener goods. UK,Greenleaf Sheffield, H.,J.Lewis, Gertsakis, T. Grant,N. Morelli andA.Sweatman (2001).Design+Environment: A http://www.suspronet.org/resource.asp?ref=60 environmentalIntegrating aspectsintoproduct designanddevelopment, International Standards Organisation (2001),ISOTC 207/WG3, Environmental management- Design for Environment Product Institute(US),http://www.productstewardship.us Stewardship Product Stewardship 6. Where canIgo for more information? 10 MiniGuide contained inthis report. amatter orrefraining asaresult from of acting, acting, anyperson full, asaconsequence of forwhatsoever loss ordamageoccasioned or claimedtohave beenoccasioned, inpartor Neither Environmental Systems&Solutions/CIDO Ltdnortheauthor(s)acceptanyresponsibility cannot beguaranteed. accuracy thematerial containedinthisreport, complete of effort hasbeenmadetoensure theaccuracy providedor advice inthispublication orincorporated intoitbyreference. Althoughevery thiscontent anddonotacceptliability ororganisation for toanyperson theinformationof orauthenticity PtyLtd,makeSolutions/CIDO LtdandProduct noclaimastotheaccuracy Ecology thispublication isprovided forThe contentof information only. Environmental Systemsand Disclaimer and DrKarli James,RMITUniversity. associates John for theESDMini-Guide’s: Gertsakis, assistinginthepreparation HelenLewis of director and Design Programme andMini-Guides.Thanksare extendedtoProduct Ecology’s theEcoSmart of anddelivery PtyLtdhasbeenvitalinthedevelopment by Product Ecology companiesinvolvedin theProgramme. Theinput providedenvironmental performance of theEcoSmart DesignProgramme. Thissupport hashelpedenhancethe financial supportof Programme for Ireland/Northern Ireland andtheInternational Fundfor Ireland for their Environmental Systems&Solutions/CIDOLtdwouldlike tothanktheEU INTERREGIIIA Acknowledgements T +44(0)[email protected] Ms Ulrike Ebli-Project Manager, Environmental SystemsandSolutions/CIDOLtd www.ecosmartdesign.co.uk information: Eco SmartDesignProgramme andtheESDMini-Guides.VisitProgramme websitefor useful Contact Environmental SystemsandSolutions/CIDOLtdfor more information about the Enquiries 2005 PtyLtd,November Organisation andProduct Ecology © Craigavon IndustrialDevelopment Graphic Design: GAIAMarketing &DesignLtd,Dundonald John andDrKarliESD MiniGuideauthors: Gertsakis, James. HelenLewis Eco SmartDesignProject Management:Ulrike Ebli Organisation. theCraigavon IndustrialDevelopment environmental wingof andadministered byEnvironmentalinitiative developed SystemsandSolutions,the theEcoSmartDesignProgramme -asustainableThis publication business forms partof Publications Details and food processing. electronics, buildingproducts, pharmaceuticals,wastemanagement,organics, engineering appliances, includingpackaging, sectors businessesinvariousindustry improvements of saveefficiencies, costsandreduce risk.TheProgramme hasfocussed onenvironmental wasprovided advice tocompaniesthrough theProgramme onhowtoincreaseA broad range of Skillful Pass. specialistconsultantsledbyThe Programme provided andsupportthrough advice ateamof that theneeds and pressures understands that SMEshave basis. The todeal withonadaily Itisabusiness-orientedinitiative theirproductsperformance and/orservices. andcredentials of The ESDProgramme aimedat SMEs) toimprove helpcompanies (mostly theenvironmental legislation, market changesandpressure comingthrough chain. thesupply providers toimprove increased theirenvironmental environmental performance inatimeof aneedfor manufacturing businessesandservice therecognition of outof Programme grew by ESS(Environmental Systems&Solutions),CoArmaghandProduct Ecology, Australia.The Ireland andhasbeendeveloped NorthernIreland andtheRepublicof Cross Border of Region for supportinitiative primarily SMEsinthe The EcoSmartDesignProgramme isanindustry DesignProgramme About theEcoSmart 7. Publication details eco smart design achieve more with less

The Eco Smart Design Programme is funded and supported by the EU INTERREG IIIA Programme for Ireland/Northern Ireland, and the International Fund for Ireland