LCA Recent Developments and Drivers in India

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1 LCA Recent Developments and Drivers in India Dr Rajesh Kumar Singh, Managing Director Ritesh Agrawal, Senior Consultant PE Sustainability Solutions Pvt Ltd a Subsidiary of PE INTERNATIONAL AG, Germany Dr Martin Baitz, Director, PE INTERNATIONAL AG

2 Global leader in sustainability management solutions The only player with an end-to-end value proposition 9/10 of the top Green Brands 2011 use PE sustainability solutions More than 20,000 software users; over 1,500 leading businesses Over 20 years of expertise in developing solutions that address sustainability challenges Globally reputed for thought leadership several publications by expert consultants Undisputed global leader in integrated sustainability management solutions Unparalleled roster of sustainability experts: Half of PE INTERNATIONAL s experts have over 10 years of Sustainability experience z

3 Products and Services Overview Carbon & Energy Optimization Environmental Management Sustainability Reporting Supply Chain Sustainability Portfolio Sustainability Management Life Cycle Assessment and Carbon Foot printing Design for Compliance and Environment Collaborative Sustainability and Communication Integrated / Embedded Calculation Engines Compliance Process Management Proprietary & Industry-specific Content Sustainability Assessment Sustainability Planning and Management Sustainability Performance and Improvement LCA Databases and Sustainability Content Regulatory Content for Product Compliance Best Practices Library Benchmarking Libraries

4 Overview PE Product Sustainability Solutions Expert Users All Stakeholders Software GaBi 5 with embedded i- report GaBi DfX GaBi i-report publisher GaBi Reader Content GaBi Databases Other Databases Data on-demand Service Custom i-reports 4

5 and is the market leader in all key verticals 40% of the Fortune Global 500 companies are customers of PE Industry Sample customers PE s USP Automotive Apparel Building & Construction Chemicals Consumer Goods Electronics Financial Services Food & Beverage Industry Associations Metals and Mining 20 years experience & leadership with dedicated vertical offering Front runner, highquality proprietary data, vertical offering EPDs and network to GBCs, 17 years in the market Association work, highquality proprietary data, deep industry expertise Ability to cover the entire value chain, incl. retail, dedicated vertical offering High-quality proprietary data & models, 15 years in the market Association work, thought leadership & robust, flexible software Ability to cover the entire value chain, incl retail, dedicated vertical offering Understanding of the industry needs, dedicated vertical offering & content Ability to cover all aspects of sustainability, benchmarking 5 capability

6 LCA Studies Carried out in India Milestones LCA in Steel Sector sponsored by Ministry of Environment & Forests and supported by IISI ( ) International conference in Ecobalance and LCA in India organised by IGIDR, MOEF, AIST, APO and IDBI (2002) Life Cycle Analysis of PP-HDPE woven sacks vis-à-vis Jute/Paper sacks by IIT Delhi (2002) LCA in cement Sector by National Council of Cement and Building materials under aegis of Ministry of Environment and Forests (2005) LCA for Jute Bags by Jute Manufacturers Development Council, Ministry of Textiles (2005) LCA update for steel sector organised by WSA (2007) 6

7 LCA Studies Carried out in India Milestones Contd. Jatropha LCA study was completed in collaboration with NREL, USA, focusing on use of Jatropha Bio-Diesel vis-à-vis Petroleum Diesel for Rail transport (2008) First ISO 14040/44 compliant comparative LCA study for container glass versus PET, beverage carton, Al can and pouch for AIGMF by PE International (2012) LCA studies in Steel, Automobile, Plastic, Fertiliser, Heavy Engineering, FMCG, Packaging, Paper, Agriculture sector etc internally being done by Industries and Government organisations Couple of studies on Pavement, Waste Water Treatment, Refinery, Solar PV, Commercial Building, Bio-materials etc completed by Academicians and Research Institutes. 7

8 Stakeholders for LCA Study MOEF IISI(WSA) Consultant(Software and Database Provider) Research Institutes (NEERI and NML) TATA Steel, SAIL, RINL LCA Study Model adopted by MoEF Ministry of Environment and Forests (Clean Technology Divison) CPCB and SPCBs Industries (Energy, Steel, Cement, Plastic, Aluminum, wood product, Oil & Gas, Mining, Chemical, Textile, Paper and Pulp, Glass, Building etc) Universities and Institutes R& D Organisations and CSIR Laboratories Software and database providers NGOs Associations

9 LCA Survey Response 2012 Sector Wise Survey Response Pulp and Paper 2% Fertilizer Biodiesel and Agriculture 4% 4% Oil and Gas 2% FMCG 19% Number of Respondents Cement 6% No of Respondants; 49 Building and Construction 8% Packaging 8% Automotives 17% Total Participants; 105 Mining and Metal 14% Institues 16%

10 LCA Survey Results Current Status of Life Cycle Assessment implementation Few LCA studies LCA is a future plan Multiple LCA studies I do not know 0% 19% 23,80% 57,10% 0% 10% 20% 30% 40% 50% 60% Main Driving Force for implementing LCA Top management Customers 19% Middle management 15% Regulators 8% Government 4% 58% 0% 10% 20% 30% 40% 50% 60% 70%

11 LCA Survey Results Skill Set and Capacity of Team Basic understanding 64% Outsourced to experts/consultants 23% Strong LCA team 14% No experience 9% LCA approaches and applications Product Carbon Footprint End of life Impacts Hotspot identification Gap assessment and Benchmarking 13% Supply Chain performance 13% Environmental product declarations 10% 0% 10% 20% 30% 40% 50% 60% 70% 17% 17% 0% 10% 20% 30% 40% 50% 40%

12 LCA Survey Results Motivations Striving to be better than competitors 46% Cost savings 29% Business Case 25% External Pressure 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Barriers Lack of knowledge and expertise Lack of regulations Enormous data & difficult to implement Lack of financial resources Not an effective tool for improvement 0% 13% 18% 28% 41% 0% 10% 20% 30% 40% 50%

13 LCA Survey Results Corporate image and Branding Improved resource and energy efficiency Reduced environment impacts Customer needs Sustainability innovation Cost Reduction Potential Benefits 9% 14% 14% 23% 25% 25% 0% 5% 10% 15% 20% 25% 30%

14 LCA Objectives : Examples FMCG Sector Packaging Sector Establish a simple measure of environmental impact Analyzing the environmental performance in the value chain Comparison for various scenarios Comparison with alternative packaging materials Sustainable Packaging External communication green image of the product. Material Selection Sustainable Products Portfolio

15 LCA Objectives : Examples Steel, Cement, paper & textile Sector Development of environment profile of steel products Product Carbon Footprint and Benchmarking Hot Spot Identification for improvement Communication to Customers Technology Comparison Automotives Sector Analyze recyclability of vehicle components Optimizing material choices e.g. energy demand vs. weight vs Carbon Footprint Scenario-modeling for product improvement Component level and complete car LCA study

16 LCA Objectives : Examples Academics & R&D Institutes Learning about Life Cycle Assessment Research on materials, components etc. Innovation assessment Building and Construction Sector Environment Product Declaration LCA of building materials and buildings Product Carbon Footprint Technology benchmarking

17 LCA Objectives : Examples Fertilizer Sector Hot Spot Identification for improvement Cost Reduction Benchmarking with Best Practice Learning about various cradle-to-grave scenario Agriculture Sector Product Carbon Footprint Cotton LCA Soybean biodiesel Jatropha biodiesel Understanding the impact of Sustainable Farming Environment Communication

18 Thank You!

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