&EPA
United States
Environmental Protection
Agency
EPA530-R-16-012
June 2016
G7 Alliance on Resource Efficiency
U.S.-hosted Workshop on the Use of Life Cycle
Concepts in Supply Chain Management to
Achieve Resource Efficiency
March 22-23, 2016, Arlington, Virginia
Workshop Summary Proceedings
Prepared by:
United States Environmental Protection Agency,
Office of Resource Conservation and Recovery
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U.S.-hosted G7 workshop on the Use of Life Cycle Concepts
in Supply Chain Management to Achieve Resource Efficiency Workshop Summary Proceedings
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U.S.-hosted G7 workshop on the Use of Life Cycle Concepts
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Disclaimer
This document was prepared by the Office of Resource Conservation and Recovery, United States
Environmental Protection Agency (U.S. EPA) and SRA International, Inc. (now CSRA, Inc.) under
contract number EP-W-14-020. Neither the United States Government nor any of its employees makes
any warranty, expressed or implied, or assumes any legal liability for any third party's use of or the results
of such use of any information, product, process, or business models discussed in this document.
Mention or illustration of company or trade names, organizations, or of commercial products does not
constitute endorsement or recommendation for use by the U.S. EPA. As of the date of this document,
external links are current and accurate, and are offered by way of example only for reference purposes.
The U.S. EPA is not responsible for content of non-U.S. EPA links. This document is for informational
purposes and does not constitute policies of U.S. EPA or the United States Government.
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U.S.-hosted G7 workshop on the Use of Life Cycle Concepts
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1 TABLE OF CONTENTS
2 Preface 1
3 Acknowledgements 2
4 March 22, 2016 3
4.1 Opening Remarks (Plenary Session) 3
4.1.1 Ms. Christine Harada, Federal Chief Sustainability Officer, White House Council on
Environmental Quality 3
4.1.2 Mr. Mathy Stanislaus, Assistant Administrator, Office of Land and Emergency Management,
U.S. Environmental Protection Agency (EPA) 3
4.1.3 Mr. Masahito Fukami, Counselor, Ministry of the Environment, Japan 3
4.2 The Importance of Using Life Cycle Concepts to Achieve Resource Efficiency (Professor Steve
Evans, Cambridge University) (Plenary Session) 4
4.3 Life Cycle Thinking Exercise: Creating a Vision for the Resource-efficient Vehicle (Product or
Service) of the Future (Plenary Session) 4
4.4 Upstream Efforts to Address Resource Efficiency (Plenary Session) 8
4.4.1 Mr. Philippe Dauphin, CanmetMaterials at Natural Resources Canada - Energy Mines
Resources.ca, an Integrated Resource Cycle 8
4.4.2 Ms. Ursula Mathar, BMW Group - Using Life Cycle Thinking and Supply Chain Engagement
to Achieve Resource Efficiency 8
4.4.3 Dr. Lee Davies, Department for Environment, Food and Rural Affairs, United Kingdom -
Developing Policy to Support Sustainable Innovation 9
4.4.4 Dr. Alessandro Peru, Ministry of the Environment, Italy - New Voluntary Approach for
Assessment and Communication of Environmental Footprint 10
4.4.5 Ms. Yuko Sakai, Toyota - Toyota's Challenge for Resource Recycling Management 11
4.5 Breakout Sessions - Upstream (Conversation Starter Summaries) 13
4.5.1 How can we use the design process to improve resource efficiency from a life cycle
perspective? 13
Ms. Carrie Pearson, 3M - Integrating Sustainability into the Design Process 13
Mr. Werner Loscheider, Federal Ministry for Economic Affairs and Energy, Germany - Light-
weighting 13
4.5.2 How can we improve how we use life cycle information and life cycle thinking to set goals and
better inform resource efficiency decisions? 13
Dr. Jim Fava, Co-chair (with Mark Barthel) of the Hotspot Project 13
Mr. Ron Voglewede, Whirlpool 14
Dr. William Flanagan, General Electric (GE) 14
4.5.3 How do we do a better job of identifying, communicating, and addressing social impacts
across the supply chain? 15
Mr. Jeff Morgan, MARS Corporation 15
Mr. Kevin Funk, U.S. General Services Administration (GSA) 15
IV
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4.5.4 How can we improve communication and share information about resource efficiency across
the supply chain? 15
Mrs. Sue Rokosz, Ford Motor Company 15
Mr. Jason Pearson, Sustainable Purchasing Leadership Council (SPLC) 15
4.6 Circular Economy Principles in Action (Plenary Session) 16
4.6.1 Mr. Jean-Francois Gaillaud, Ministry for Economy and Industry, France 16
4.6.2 Dr. Philippe Schulz, Groupe Renault 16
4.7 Tool Time: Tools and Resources to Accelerate Resource Efficiency (Plenary Session) 17
4.7.1 Mr. Paul Yaroschak, U.S. Department of Defense (DoD) - Sustainability Analysis Tool 17
4.7.2 Mr. Joe Cresko, U.S. Department of Energy (DOE) - LIGHTEn-UP and MFI Tools 17
4.7.3 Ms. Elisa Tonda, UNEP - Global Network of Interoperable LCA Databases 18
4.7.4 Mr. Charles Shoopman, University of Tennessee - Investing in Manufacturing Communities
Partnership (IMCP) 18
4.7.5 Mr. Andrew Mangan, U.S. Business Council on Sustainable Development and Andrea
Brown, World Business Council on Sustainable Development - The Materials Marketplace 18
4.7.6 Mr. Steve Gutmann - Stuffstr 18
4.7.7 Mr. Kevin Funk-Social Impact Tool 19
5 March 23, 2016 20
5.1 Opening Remarks (Plenary Session) 20
5.1.1 Dr. Wolfgang Scheremet, Director General, German Ministry for Economic Affairs and
Energy 20
5.1.2 Ms. Gina McCarthy, Administrator, U.S. Environmental Protection Agency 20
5.2 Improving Resource Efficiency in Operations, Use and at End-of-Life (or Second Life) with
Supply Chain Engagement (Plenary Session) 21
5.2.1 Mr. Yuji Yamaguchi, Ministry of the Environment, Japan - Japan's Initiatives to Promote
Resource Efficiency and the 3Rs in the Auto Sector 21
5.2.2 Ms. Lynn Laszewski, PepsiCo-The Realities of End of Life Resource Efficiency 21
5.2.3 Mr. Adam Muellerweiss, Johnson Controls - Insights from the Circular Economy of
Automotive Batteries 22
5.2.4 Mr. Peter Bartel, Robert Bosch - Ensuring Long-term Availability of Remanufactured Spare
Parts 22
5.2.5 Dr. Paolo Masoni, Italian National Agency for New Technologies, Energy and Sustainable
Economic Development (ENEA) - Extracting Value from End-of-life Materials: Car Shredding
Residues and Tires 23
5.3 Breakout Sessions - Operations, Use and End-of-life (Conversation Starter Summaries) 23
5.3.1 How do we incorporate and improve efficiency in other areas such as water, energy, land,
etc...? 23
Mr. Bruce Uhlman, BASF 23
5.3.2 How can we create value from waste materials? 24
Mr. John Bradburn, General Motors 24
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Mr. Kevin Butt, Toyota 24
5.3.3 How might we improve the recycling of vehicles at the end of life, both increasing recycling
rates and improving the recyclability of components? 24
Mr. Steve Fletcher, Auto Recyclers Canada (ARC) 24
5.3.4 How can we expand the use of remanufactured or refurbished parts? 24
Dr. Nabil Nasr, Rochester Institute of Technology 24
5.3.5 How might we expand the use of recycled materials to minimize raw material use in a way
that promotes resilience and competitiveness? 25
Ms. Jessica Sanderson, Novelis 25
5.4 After Lunch Videos (Plenary Session) 25
5.4.1 Dr. Alessandro Peru, Ministry of the Environment, Italy - Italian Professionalism at the
Service of the Environment 25
5.4.2 REALGAR Innovate UK (video provided by Mr. Adrian Tautscher, Jaguar/Land Rover) 26
5.5 Critical Factors for Successful Implementation (Plenary Session) 26
5.5.1 Mr. Robert Larsen, Composite Recycling 26
5.5.2 Mr. Mike Mullin, Brambles Limited 27
5.5.3 Mr. Steve Hellem, Suppliers Partnership for the Environment 27
5.5.4 Dr. Wolfgang Scheremet, German Ministry for Economic Affairs and Energy 27
5.6 Key Observations and Potential Next Steps or Actions Identified by Sector-Specific Groups
(Plenary Session) 28
5.6.1 Academia and Environmental Groups 28
5.6.2 Other Industry Sectors 29
5.6.3 Automotive Sector 29
5.6.4 Waste Management/Recycling 29
5.6.5 Government and Intergovernmental Organizations 29
5.7 Closing Remarks (Plenary Session) 30
5.7.1 Mr. Mathy Stanislaus, Assistant Administrator, Office of Land and Emergency Management,
U.S. Environmental Protection Agency (EPA) 30
5.7.2 Mr. Masahito Fukami, Counselor, Ministry of the Environment, Japan 30
6 Attachment 1 - Resource Efficient Vehicle or Product of the Future Ideas Posted to the Wall During
the Workshop 31
6.1 Recycling 31
6.2 Re-Use 31
6.3 Information Sharing 31
6.4 Influencing Consumer Preference 31
6.5 Vehicle Characteristics 32
6.6 N/A 32
6.7 Finance 32
6.8 Life cycle 32
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6.9 Policy 32
6.10 Government Mandates 32
7 Attachment 2 - Upstream Resource Efficiency Breakout Discussion Notes 33
7.1 How can we use the design process to improve resource efficiency from a life cycle
perspective? 33
7.1.1 Conversation Starters 33
7.1.2 Best Practices 33
7.1.3 Challenges 34
7.1.4 Suggested Changes, Improvements or Actions 34
7.2 How can we improve how we use life cycle information and life cycle thinking to set goals and
better inform resource efficiency decisions? 35
7.2.1 Conversation Starters 35
Dr. Jim Fava, Co-chair (with Mark Barthel) of the Hotspot Project 35
Mr. Ron Voglewede, Whirlpool 35
7.2.2 Best Practices 35
7.2.3 Challenges 36
7.2.4 Suggested Changes, Improvements or Actions 37
7.3 How can we improve how we use life cycle information and life cycle thinking to set goals and
better inform resource efficiency decisions? 38
7.3.1 Conversation Starters 38
Dr. William Flanagan, General Electric (GE) 38
7.3.2 Best Practices 38
7.3.3 Challenges 39
7.3.4 Suggested Changes, Improvements or Actions 40
7.4 How to do a better job identifying and communicating social impacts across the supply chain
and preventing or addressing negative impacts? 40
7.4.1 Conversation Starters 40
Mr. Jeff Morgan, MARS Corporation 40
Mr. Kevin Funk, U.S. General Services Administration (GSA) 41
7.4.2 Best Practices 41
7.4.3 Challenges 41
7.4.4 Suggested Changes, Improvements or Actions 42
7.5 How can we improve communication and share information about resource efficiency across
the supply chain? 43
7.5.1 Conversation Starters 43
Mrs. Sue Rokosz, Ford Motor Company 43
Mr. Jason Pearson, Sustainable Purchasing Leadership Council (SPLC) 43
7.5.2 Best Practices 43
VII
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7.5.3 Challenges 44
7.5.4 Suggested Changes, Improvements or Actions 44
8 Attachment 3 - List of Tools and Resources 46
9 Attachment 4 - Improving Resource Efficiency in Operations, Use and at End-of-Life Breakout
Discussion Notes 47
9.1 How do we incorporate and improve efficiency in other areas such as water, energy, land, etc.?
47
9.1.1 Conversation Starters 47
Mr. Bruce Uhlman, BASF 47
9.1.2 Best Practices 47
9.1.3 Challenges 48
9.1.4 Suggested Changes, Improvements or Actions 48
9.2 How can we create value from waste materials? 49
9.2.1 Conversation Starters 49
Mr. John Bradburn, GM 49
Mr. Kevin Butt, Toyota 49
9.2.2 Best Practices 50
9.2.3 Challenges 50
9.2.4 Suggested Changes, Improvements, or Actions 50
9.3 How might we improve the recycling of vehicles at the end of life, both increasing recycling
rates and improving the recyclability of components? 51
9.3.1 Conversation Starters 51
Mr. Steve Fletcher, Auto Recyclers Canada (ARC) 51
9.3.2 Best Practices 51
9.3.3 Challenges 51
9.3.4 Suggested Changes, Improvements or Actions 52
9.4 How can we expand the use of remanufactured or refurbished parts? 53
9.4.1 Conversation Starters 53
Dr. Nabil Nasr, Rochester Institute of Technology 53
9.4.2 Best Practices 54
9.4.3 Challenges 54
9.4.4 Suggested Changes, Improvements or Actions 55
9.5 How might we expand the use of recycled materials to minimize raw material use in a way that
promotes resilience and competitiveness? 57
9.5.1 Conversation Starters 57
Ms. Jessica Sanderson, Novelis 57
9.5.2 Best Practices 57
9.5.3 Challenges 58
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9.5.4 Suggested Changes, Improvements or Actions 59
10 Attachment 5 -Workshop Agenda 60
11 Attachment 6 -Workshop Participant List 66
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2 PREFACE
These proceedings of the G7 Alliance on Resource Efficiency U.S.-hosted Workshop on the Use of Life
Cycle Concepts in Supply Chain Management to Achieve Resource Efficiency summarize prepared
remarks, presentations and discussions from the event. This document is not intended to contain any
consensus findings, recommendations, or agreements made by participants or of the G7 Alliance on
Resource Efficiency; rather, it should be viewed as a summary of individual workshop participant
statements and ideas.
The Group of Seven (G7) consists of seven industrialized, democratic nations - Canada, France,
Germany, Japan, Italy, the United Kingdom and the United States -whose heads of state meet annually,
along with the leadership of the European Union (EU), to discuss global issues. The outcome of the
annual meeting of the G7 leaders is captured in a "Leaders' Declaration." The presidency of the G7
rotates annually among the seven nations. The June 2015 Elmau Summit Declaration and Annex
established the G7 Alliance on Resource Efficiency to serve as a forum to share knowledge and create
information networks on a voluntary, non-binding basis, including collaboration with large and small
businesses and other relevant stakeholders to advance resource efficiency, promote best practices and
foster innovation. The Summit Declaration's Annex proposed a series of workshops to initiate the process
for sharing best practices and experiences and the creation of information networks under the G7 Alliance
on Resource Efficiency. The official launch of the Alliance occurred on October 2, 2015 in Berlin and was
followed by a workshop on Industrial Symbiosis in the United Kingdom October 29-30, 2015. Germany
hosted a second workshop on "Innovative bio-based products" in Berlin November 23-24, 2015.
After assuming the G7 presidency in January 2016, Japan hosted the "Promoting International
Cooperation for Improving Global Resource Efficiency Workshop under the G7 Alliance on Resource
Efficiency" on February 11, 2016 in Yokohama, Japan. Prior to the May 26-27, 2016 G7 Japan Ise-Shima
Leaders' Summit, Japan reinstated the environment ministers' meeting (the last meeting was held in
2009) and held the G7 Toyama Environment Ministers' Meeting on May 15-16, 2016. The G7 Toyama
Environment Ministers' Meeting Communique noted the ministers' strong commitment to continue
implementing initiatives for resource efficiency and the 3 Rs (reduce, reuse and recycle), including the G7
Alliance on Resource Efficiency, and adopted the "Toyama Framework on Material Cycles" which was
annexed to the Communique. The May 27, 2016 G7 Ise-Shima Leaders' Declaration endorsed the
Toyama Framework on Material Cycles.
On March 22-23, 2016, the United States hosted a workshop on behalf of the G7 Alliance on Resource
Efficiency in Arlington, Virginia. The purpose of this workshop was to share best practices and identify
further opportunities to use life cycle thinking to achieve resource efficiency across supply chains. While
the workshop used several examples from the auto sector to generate discussion, many conversations
transcended any particular industry sector and generated more universal best practices and challenges.
This success in identifying best practices and challenges was due in large part to the diversity of
workshop participants. The workshop included approximately 190 representatives from nine countries (all
G7 countries as well as South Korea and the Netherlands), individual industries and industry
associations, non-governmental organizations, international organizations, academia and others.
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3 ACKNOWLEDGEMENTS
The U.S. Environmental Protection Agency wishes to thank the government officials from all G7 nations
who represented their countries at the workshop and who took the time to speak with the U.S. workshop
development team on numerous occasions to craft a productive agenda. We wish to thank those officials
for connecting us to key stakeholders within their respective countries for additional input on agenda
development and workshop participation.
We are equally appreciative of the many individuals from the private, academic and NGO sectors who
offered input on workshop content that led to engaging conversations throughout the two days of the
workshop.
We would like to thank Mr. Masahito Fukami, Counselor, Ministry of the Environment, Japan; Dr.
Wolfgang Scheremet, Director General, German Ministry for Economic Affairs and Energy; and Ms.
Christine Harada, Chief Sustainability Officer for the U.S. Government for their inspiring opening remarks.
We would also like to thank Professor Steve Evans, Cambridge University for establishing a common
understanding and tone for the workshop.
We are indebted to the over forty individuals from the private, public, academic and NGO sectors from
across the G7 nations who enabled rich workshop discussions through their highly relevant and timely
presentations.
Finally, we would like to thank the Japanese Embassy for hosting the workshop reception.
SUPPORT: The U.S. EPA workshop planning team was supported by SRA International, Inc. (now
CSRA, Inc.) in planning, designing, and executing this workshop. Key CSRA support included: Stacey
Burger, overall task manager for SRA; Patrick Tallarico of Enventive, Inc, principal facilitator and
workshop planner and designer; and Nicole Henderson of SRA, for venue acquisition. Patrick Tallarico
led a team of five facilitators that included: Mary Apostolico of CSRA; Doug Black of Consilium
Consulting; Dana Goodson of RESOLVE, Inc.; Bryan Pai of CSRA; and Doug Sarno of Forum Facilitation
Group.
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4 MARCH 22, 2016
4.1 OPENING REMARKS (PLENARY SESSION)
4.1.1 Ms. Christine Harada, Federal Chief Sustainability Officer, White House
Council on Environmental Quality
Ms. Harada thanked Germany for its previous leadership and Japan for its current leadership as G7
President. She noted that the U.S. government believes that management of materials has a major
impact on the economy and is therefore considering the environmental, social and economic issues
related to materials management, from using recycled materials as inputs to more complex activities. In
addition, the U.S. is working on building on the Federal Government's significant progress in reducing
greenhouse gas (GHG) emissions. The President of the United States issued Executive Order 13653
(Preparing the United States for the Impacts of Climate Change) in 2013, which outlines measures to
make government operations more sustainable, energy secure and efficient while saving taxpayer dollars.
Market innovation is going to be an important driver of change. Workshop participants should take
advantage of having such a distinguished gathering of minds to drive the conversation forward.
4.1.2 Mr. Mathy Stanislaus, Assistant Administrator, Office of Land and
Emergency Management, U.S. Environmental Protection Agency (EPA)
Mr. Stanislaus acknowledged that the Resource Efficiency Alliance started under Germany's leadership in
order to foster collaboration among G7 countries, businesses and civil society organizations. The hope is
that this workshop, like those previously held in Germany, the United Kingdom and Japan, can help
identify best practices and find ways to help scale them up throughout the G7 and other developed
economies as well as emerging and developing economies. Now is the time to act. Currently, half to
three-quarters of inputs to global industrial economies is returned to the environment as waste within one
year. Further, the Organisation for Economic Co-operation and Development (OECD) predicts that
demand for materials will increase by 50 percent in 15 years unless global leaders can decouple
economic growth from the use of raw materials. The annual cost of ecosystem depletion and pollution to
the largest U.S. companies alone is estimated to exceed $1 trillion. These unaccounted for impacts are
like the proverbial iceberg - largely unseen, but substantial in size and pose a real business risk.
To address these impacts, U.S. EPA promotes sustainable materials management and life cycle
approaches to decision-making to minimize the use of resources and promote integrative systems
thinking. A change in how the world thinks about environmental impacts and resource efficiency will be
critical to success.
4.1.3 Mr. Masahito Fukami, Counselor, Ministry of the Environment, Japan
Mr. Fukami thanked U.S. EPA for organizing this meeting. He noted that in 2015, Japan, who would be
assuming the G7 presidency in 2016, agreed to take ambitious action in the realm of resource efficiency
during the launch of the G7 Alliance on Resource Efficiency in Germany. Japan would like to contribute to
the international discussion as resource efficiency issues have great impacts throughout the supply chain.
This workshop provides an opportunity to share stakeholder best practices to reduce environmental
impact globally.
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U.S.-hosted G7 workshop on the Use of Life Cycle Concepts
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4.2 THE IMPORTANCE OF USING LIFE CYCLE CONCEPTS TO ACHIEVE RESOURCE
EFFICIENCY (PROFESSOR STEVE EVANS, CAMBRIDGE UNIVERSITY)
(PLENARY SESSION)
Dr. Evans shared key concepts that helped established a common understanding among participants
about the important role of life cycle thinking in accelerating and achieving resource efficiency. He stated
that those involved in resource efficiency need to develop and agree on a common language to foster
common understanding, although disagreement on some issues is to be expected. The standard
academic definition of resource efficiency is the efficiency with which we use energy and materials
throughout the economy. Currently, most waste is simply disposed of in landfills. However, advanced
economies have managed to reduce waste and have moved up the waste hierarchy to energy recovery,
recycling, reuse, reduction and prevention.
Dr. Evans emphasized that boundaries of analysis are important. National boundaries are not necessarily
the most appropriate. When countries set resource efficiency goals based on their national boundaries, it
encourages offshoring of waste and increased energy use in other countries. Resource efficiency
practitioners need to be more nuanced when examining resource efficiency and consider the entire
system.
He stated that when considering the concept of resource efficiency, value and not just price should be
measured. Resource efficiency is a good thing, but countries have to be aware of potential unintended
consequences. As countries improve their efficiency, they put more money into their economies which
allows consumers to buy more and adds stress on the environment (rebound effects). As countries
become more resource efficient, governments need to monitor what impact these efforts have on jobs.
Are the jobs that are lost from resource efficiency fewer than the jobs created on the other end of the
value chain?
Dr. Evans observed that some of the best practices in resource efficiency have come from the automotive
sector. Although supply chains have generally become more efficient, this has not necessarily translated
to resource efficiency. Resource efficiency is not easy, but is the responsible thing to do that also
happens to be good for business. Improving resource efficiency does not require more money and new
laws, it requires collaboration and invention.
4.3 LIFE CYCLE THINKING EXERCISE: CREATING A VISION FOR THE RESOURCE-
EFFICIENT VEHICLE (PRODUCT OR SERVICE) OF THE FUTURE (PLENARY
SESSION)
Mr. John Bradburn (General Motors), Ms. Karen Cecil (Cummins), Mr. Jean-Francois Gaillaud (French
Ministry of Economy, Industry and Digital Affairs), Ms. Antonia Gawel (World Economic Forum), Mr. Mike
Swift (Auto Recycling Association) and Prof. Yasushi Umeda (University of Tokyo) served as a group of
panelists who provided their perspectives on the resource efficient vehicle or product of the future through
a series of facilitated questions and answers. Participants added their input to this vision. Attachment 1
provides a list of ideas about the resource-efficient product or vehicle of the future that were posted to the
wall during the workshop.
• What are the key trends impacting the resource efficiency of products and vehicles in the future?
- Ms. Gawel noted that there are an estimated 7.2 billion mobile devices now and there will be
28 billion by 2020. Digitization is having a profound impact on consumers and what they
demand. The World Economic Forum is looking at the digital transformation for industries and
its implications. For the automotive sector specifically, consumer-side expectations and
demands are shifting. People do not want to own a car anymore; they want a means for
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getting from point A to point B. When thinking about resource efficiency, it is not about "what
can a sector do?" it is about "how can you impact the system?" In the next 10 to20 years,
more innovation in the automotive sector will occur than in the past 100 years as a result of
these three trends: digitization, mobility, and connectivity.
- Mr. Swift noted that the innovation and technology being incorporated into automobiles in
recent years is staggering. With the advancement of technology in cars and communication,
one of the biggest issues recyclers have is trying to get information from manufacturers about
parts. Often, manufactures think of recyclers as competition instead of as teammates.
Currently, there is some interchangeability of parts, but with cars becoming more digital and
interconnected, it is becoming increasingly difficult. There is a need for recyclers to have
partnerships with manufacturers in order to recycle effectively. Partnerships are a key to
success throughout the supply chain, especially at the end of life stage.
- Ms. Cecil mentioned that vehicle automation, such as self-driving cars, is the next major
driver for change in the auto industry. It will provide an opportunity to redesign products to be
more resource efficient.
• What does the product or vehicle of the future look like? Automated features to prevent accidents,
etc. ? What are the other elements?
- Mr. Bradburn pointed out that everyone at the workshop plays a role in addressing some of
the world's challenging situations. If we are to create a more sustainable world, it will involve
creating jobs and growing economies. Products or vehicles of the future will have higher
recycled content and amounts of bio-based materials. They will also provide more
opportunities for upcycling material. The real challenge is not the idea of a sustainable
product or vehicle, it is getting it done and working with suppliers to incorporate these ideas
into the product. It's not easy. Light-weighting is another element and fuels are key. It will be
important to see things as they could be and not as they are.
- Professor Umeda said that the key feature of the circular economy is not waste management,
but looking at the entire system. The two system enablers are Information Communication
Technology (ICT) and design. Vehicles of the future will be designed to be manufactured with
almost no raw materials and instead with almost all recycled materials and remanufactured
components. Also, a manufacturer may design an automobile only for car sharing, which may
have very long life and very good fuel efficiency for short trips, with very low cost. ITC will
enable life cycle management, and the amount of resource consumption will be determined
by design. Design should be an integrated model of business and services so that companies
can employ sharing in addition to traditional product sales.
- Mr. Gaillaud noted that consumers are expecting vehicles to consume less fuel. Consumers
are now focusing on the cost of maintenance and fuel. Electric cars seem to make sense for
them, but electric batteries are very expensive and consumers are concerned about the long-
term value of the batteries. Should you buy a new battery when the current one is no longer
good, or should the manufacturer replace it and find new life for the batteries? Does this
mean that manufactures share the long-term value of the car and the battery?
- Ms. Gawel emphasized that the new business models mentioned have several implications.
First, consumers are not necessarily interested in buying a car, instead they are interested in
mobility (e.g. servicizing). For example, Michelin established a scheme in which customers
pay for tires per mile instead of buying them outright. This changes incentives for
manufacturers - the longer they can keep the tire on the road the longer they can profit from
it. Therefore, this would make manufacturers focus on making tires that last longer instead of
focusing on making more tires. Second is the digitization piece. Shifts in business models
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and systems can impact resource efficiency. The question is how to implement technologies
in the right way.
- Ms. Cecil said that from a supplier's perspective, partnerships, systems thinking and
innovation are the path forward. Cummins is working with stakeholders (e.g., customers,
government agencies) on the upfront design to find the best way to achieve the desired gain
in fuel and emissions efficiencies. For example, the company is working with the U.S.
Department of Energy (DOE) program on the Super!ruck initiative
(http://social.cummins.com/supertruck-project-ready/). They have been able to achieve
increased fuel efficiency of classic trucks by 75 percent. Cummins is looking to disrupt its own
business practices and is thinking more broadly than before - it's not only decreasing the
amount of direct natural resource use, but looking at the embodied energy and water in the
materials used in its products. For example, Cummins engines are 95 percent metal and 88
percent of embodied water comes from raw material extraction and processing. Another
question is how do we broaden this discussion to involve community health? How do we
design our products to maintain the integrity of metal for a continuous loop? Cummins is not
there yet but is working toward a vision of designing for disassembly and ensuring every
component can be reused.
- Mr. Bradburn also noted that product life spans are increasing. The average age of a car on
the road is 11.5 years. That increased life means more engagement with the collision industry
and the repair and maintenance industry and requires new partnerships. For example, how
long do manufacturers keep supplying parts for old cars and when do they rely on recyclers
for that function? How can the original equipment manufacturer (OEM) help consumers who
cannot afford a brand new part, but can afford a recycled one?
• What kind of policies/programs need to be in place to support this vision?
- Mr. Gaillaud stated that all stakeholders must work together to find the right solutions.
Governments can introduce some policies in the field of labeling so consumers know what
they are buying. Resource efficiency practitioners also have to think about the link between
the producer and the recycling industry. A key tool is to extend producer responsibility and to
build a bridge between the producer and the recycler. In addition, practitioners have to focus
on innovation, because that will be important for advancing resource efficiency. Government
has to partner with private entities in new business models. Some regulations may be needed
to support these new business models, but there need to be incentives as well. Finally,
training is important to make sure everyone in the supply chain is aware of these issues.
Suppliers throughout the supply chain need access to information. One of government's most
important roles is to facilitate the exchange of information.
- Ms. Gawel noted that society is moving quickly and new business models are emerging. To
address this, we need to form public-private partnerships and identify and exploit new
incentives to encourage more sustainable products. There are challenges related to car
sharing platforms in certain industries and sectors. What is the role that policies can play in
making sure there is a platform for the population that is in alignment with demands of
consumers? Public-private collaboration is huge for delivering new business models to the
public. In addition, policy must be designed as a system; otherwise, you tackle pieces, but do
not address the whole.
- Ms. Cecil observed that industry needs certainty and direction, especially because
technology is expensive to develop. Industry wants clear, tough and enforceable regulations
to drive innovation and progress.
Questions from workshop participants to panelists:
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• Question: Who is working to get auto shredder residue out of landfills given that the mixture of
materials in the residue is impossible to separate?
- This question was deferred to the Day 2 discussion that would address this topic, but
participants noted that better interaction between manufactures and recyclers could lower the
amount of material that ends up in landfills. It was suggested that the government could help
recyclers by encouraging better communication between manufacturers and recyclers and
using recycled parts in the maintenance of its vehicle fleet.
• Observation: There is a need for better part number information given that the Hollander Interchange
system was developed in 1934 and needs to be fundamentally updated or replaced. More availability
of part numbers would result in greater reuse and recycling of parts. Every part from every vehicle
could be reused if the information was available, because new parts are not needed fora used
vehicle.
- Mr. Bradburn mentioned that there are a number of examples of reuse of parts in General
Motors (GM) plants. For example, GM has a commodities research manager in each plant to
look for blemished pieces that could be reused or sold for scrap. The auctioning of these
blemished parts has generated over $10 million after the first year. This sort of mind set led to
some other interesting outcomes. For example, the Chevy Volt battery covers are very
difficult to recycle, but by looking at them as a commodity and not waste, GM is considering
turning them into nest structures and bat houses. This has removed waste from landfills and
improved the environment. It is a truly sustainable solution.
• Question: Are auto manufacturers designing for dismantling?
- Mr. Bradburn said that there was some work done with dismantlers on the Volt itself so GM
has a lot of data on recovering some of those materials. It is a matter of connecting the green
dots.
• Question: Do we need to change standards, codes and insurance in order to advance resource
efficiency? The University of Waterloo in Ontario, Canada did a 5-year study looking at reuse of
batteries. The research team discovered that environmentally battery reuse is a great idea, but
economically it is inefficient. The great barrier to reusing batteries was that they could not be used in
regular buildings because electrical codes would not allow it. If the batteries could be used, then the
insurance industry did not know how to insure them.
- Ms. Gawel agreed this is exactly the challenge. At the macroeconomic level you see an
opportunity, but in terms of playing it out with actors in the system, it does not work well.
Another issue is financing. How to account for the value of the materials up front when
commodities are volatile, and who benefits? The bank? The building owners? The users?
These barriers need to be lowered.
- Commenting on the circular economy discussion, Mr. Gaillaud stated that a key role of
government is to make sure that initiatives get off the ground by helping to remove some of
the barriers. For example, France is going to work with private companies through mutual
agreements to remove identified barriers and make sure that those pioneers who expect to
run new business models can find the right insurance.
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4.4 UPSTREAM EFFORTS TO ADDRESS RESOURCE EFFICIENCY (PLENARY
SESSION)
4.4.1 Mr. Philippe Dauphin, CanmetMaterials at Natural Resources Canada -
Energy Mines Resources.ca, an Integrated Resource Cycle
Mr. Dauphin described integrated resource cycling and sustainable development related to the extractive
sector in Canada. He noted that a full fifth of Canada's exports are minerals and metals based. In the
mid-1990s, they developed a policy that: defined a sustainable development approach to minerals and
metals; identified issues around competitiveness and societies; promoted markets and stewardship;
established Canada's role in engaging with aboriginal communities; and defined the role of the
government in international relations and trade to make sure technology barriers to trade were not
introduced.
Canada is a complicated regulatory space. Extraction and ownership of natural resources is a provincial
and territorial responsibility. There are a number of shared responsibilities with the federal government
including research, sustainable development and economic development. On the federal side, the focus
is on national statistics and trade issues. The Canadian government just implemented an extractive
sector transparency measures act based on experience with Canadian companies operating abroad.
Mr. Dauphin noted that Canadian mining is working on four points related to resource efficiency: footprint
reduction; waste management; mine closure and rehabilitation; and ecosystem management.
Mr. Dauphin also noted that CanmetMaterials, the laboratory he directs, focuses three quarters of its
activities at the nexus of minerals and metals and energy. The largest program at CanmetMaterials is
focused mostly on automobiles, reducing emissions through lightweighting, powertrain efficiency and heat
management.
• Question: As you look at the life cycle of minerals and metals management, are you exploring
opportunities for collaboration up and down the supply chain? Have you found any natural partners?
- Probably 90 percent of CanmetMaterials work is done through partnerships. Right now
CanmetMaterials is looking at developing materials, so its role is not at the functional end of
things, but rather at the material properties end of things.
4.4.2 Ms. Ursula Mathar, BMW Group - Using Life Cycle Thinking and Supply
Chain Engagement to Achieve Resource Efficiency
Ms. Mathar discussed how BMW uses life cycle thinking and supply chain engagement as it works toward
resource efficiency. In order to make sure BMW is fit for the future, the company continuously invests in
integrating sustainability into its business model. BMW sees global sustainability challenges as an
opportunity to develop innovative products and services. In this way, sustainability makes a long-term
contribution to the business success of the BMW Group. BMW's innovations are not developed to be of
benefit to its customers only - BMW also wants them to have a positive impact on society and the
environment. Taking social and environmental responsibility for all BMW does is an integral part of how it
perceives itself as a company. BMW is convinced that the lasting economic success of any enterprise in
today's world is based increasingly on acting responsibly and ensuring social acceptance. BMW wants to
achieve a clear competitive advantage with efficient and resource-friendly production processes and
state-of-the-art solutions for sustainable individual mobility for its customers.
One example from a life cycle point of view is BMW's new 7 Series. It is 25 percent better with respect to
its carbon footprint than its predecessor.
Another example: Since 2011, the BMW Group and Sixt SE have been offering their joint venture car-
sharing service DriveNow. BMW and Sixt SE are also integrating electric vehicles into the range of cars
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available from DriveNow. For example, in 2015 DriveNow introduced over 800 BMW i3 vehicles into its
car-sharing fleets worldwide. By December 31, 2015, DriveNow had a total of around 490,000 customers
in Germany and around 580,000 worldwide (in 2014: over 390,000 worldwide).
As part of the global growth of the BMW Group, the company is shifting its value creation more strongly
towards the respective sales markets. Increasing internationalization of procurement leads to great
opportunities but also to new sustainability risks. In view of BMW's large number of suppliers and sub-
suppliers, maintaining sustainability standards is a huge challenge. Only if BMW works closely with its
business partners can it increase transparency and resource efficiency in the supply chain and ensure
that sustainability standards are complied with.
Ms. Mathar stated that BMW also knows that sustainability must extend across the value chain - currently
53 percent of its suppliers go through the company's Carbon Disclosure Project (CDP) Supply Chain
Program. Sustainability requirements are part of supplier's contracts and BMW asks them to pass the
requirements down to their lower-tier suppliers. There are four areas where BMW is working with
suppliers: 1) principles and standards for supplier network; 2) sustainability risk management; 3)
sustainability training (suppliers are invited to participate); 4) participation in initiatives and networks -
BMW feels this type of collaboration helps everyone.
She also noted there are a few key challenges to achieving a more sustainable supply chain: 1)
complexity and dynamics of the supply chain itself; 2) lack of transparency along the supply chain; 3)
minimum standards in industry.
Ms. Mathar said at the division level, BMW's sustainability strategy needs to have very concrete,
measureable targets for management. By incorporating a life cycle approach in the strategies, it helps
drive down through the supply chain.
• Question: You mentioned having 10 times more customer contact, have you gotten feedback that this
is helpful to the life cycle process?
- Some consumers are really interested, but most of them are only looking for a personal
advantage.
4.4.3 Dr. Lee Davies, Department for Environment, Food and Rural Affairs,
United Kingdom - Developing Policy to Support Sustainable Innovation
Dr. Davies described some of the UK's work on supporting sustainable innovation. He briefly outlined the
Action Based Research approach which the UK government is using to explore how policy makers can
most effectively enable the transition to a resource efficient economy.
The program starts with the development of a broad set of outcome-focused research questions; a central
principal is that policy makers do not have all the answers and that it is much more likely that valuable
insights will develop if the government opens up the process of shaping the research question as broadly
as possible.
The process is also designed to generate the broadest possible range of ideas for new projects,
encouraging bids from actors across academia, business and civil society and promoting the
development of new collaborations - for example between academics and business - to operationalize
new ideas and concepts.
The procurement process is a critical element in the success of the program. It is designed to minimize
the burden and risk on applicants - to encourage new partners to engage and to support them through
the process of developing their proposals.
Once identified, the projects adopt a highly iterative approach based on a formative evaluation process
that lets the program identify new learnings early and feed them back into the project, leading to a more
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natural process of learning. This also allows the program to feed learnings directly into policy thinking as
they emerge, delivering on-going value throughout the lifetime of the project.
An example of an actual project facilitating resource efficiency is the Shared Resource Efficiency
Manager Project. It is a collaborative model where a cluster of small- and medium-sized enterprises
working in the same sector can get together and share a Resource Efficiency Manager.
The Shared Resource Efficiency Manager (SREM) is not a consultant but more of a shared employee.
This role helps to alleviate issues when companies do not have the capability or time to allocate someone
to tackle resource efficiency questions. The goal of the project was to see whether the program could
build a collaborative model in which an employee could be shared between a group of businesses who
could access the expert in a more efficient, flexible way and also benefit from the opportunity to learn
from other businesses in the cluster.
The SREMs employed a three stage process. In the first stage, the manager undertook a structured data
collection review and analysis of the businesses' systems and processes. In the second stage, the
manager developed action plans and focused on getting buy-in from senior management and key actors
on the shop floor. The third stage was delivery. It was a very circular process with learnings being
constantly fed back into the process - both within and between businesses in the clusters - allowing for
development and refinement of the process throughout the trial. The wider project partners, including the
project team and policy makers, were also actively engaged throughout the process, providing advice and
taking away learnings as they emerged.
The initial findings indicate that even within the trial period the SREMs paid for themselves in terms of
resource efficiency savings. They generated £125,000 in short-term actual savings. A further £450,000 in
savings was identified through improved processes. The broader benefits associated with the model
included building business networks.
However, Dr. Davies noted that there were challenges. First, many companies see material resource
efficiency activities as a cost, at least up front. Second, some companies do not feel that they have the
ability to change processes and practices, especially when they have one or two big clients that dictate
processes. Third, material costs are not as salient to businesses as energy costs. Finally, working with
larger businesses at the top end of the supply chain can be a very effective mechanism, but companies
need to develop the relationship and trust and need to ensure that the services they are providing are a
benefit and not a burden.
• Question: Did you notice any common themes or key moments in time where people could get past
key barriers?
- Once savings were realized, the participating businesses were reassured. The message is
that it is still challenging to convince businesses that they need to try resource efficiency. The
only way to tackle this doubt is to use the people who are already engaging in resource
efficiency as advocates since they have the real credibility here; government cannot do it
alone.
4.4.4 Dr. Alessandro Peru, Ministry of the Environment, Italy - New Voluntary
Approach for Assessment and Communication of Environmental Footprint
Dr. Peru described a new voluntary approach Italy has taken for assessing and communicating
environmental footprints. He began by noting that Italy has one national law (Collegato Ambiente) that
covers a wide range of environmental issues, including resource efficiency and circular economy issues.
Before this law was enacted, Italy launched the Environmental Footprint National Program. It started in
2011, and the Ministry of the Environment initiated an intensive program on voluntary environmental
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footprinting. It covers design and implementation of carbon and water footprinting and is aimed at
promoting voluntary commitments from small- and medium-sized enterprises.
Italy is also launching a campaign to raise consumer awareness including adding an "Environmental
Annex" to Italy's Financial Stability Law (February 2016). This annex is a strategic tool to support
recycling.
Dr. Peru pointed out that the regulatory framework will involve both binding and voluntary instruments.
Green Public Procurement dictates mandatory use of goods and services that meet "minimum
environmental criteria." There is also the "Made Green in Italy" national voluntary scheme that will be set
up to increase competitiveness of Italian eco-products.
Finally, Italy is currently working on a comprehensive Green Act that will provide useful tools to further de-
carbonize the economy, promote efficient and sustainable use of resources, and enable financing for
sustainable development. Italy is also working on an updated National Sustainability Strategy.
• Question: Has Italy seen any public attitude changes based on outreach?
- Yes, the public has indicated that it is a good time to promote this effort. The Ministry of
Environment will launch a communication strategy in the coming months and one of the aims
is to include consumers to make them more knowledgeable of what we are doing and how
they can play a role.
4.4.5 Ms. Yuko Sakai, Toyota - Toyota's Challenge for Resource Recycling
Management
Ms. Sakai described Toyota's Challenge for Resource Recycling Management. In October 2015, Toyota
unveiled Toyota's Environmental Challenge 2050 - a zero environmental impact challenge.
Ms. Sakai noted that Toyota has a history of automobile recycling and actively engages with automobile
recycling at every stage of the life cycle. For example, Toyota has the Automobile Recycling Technical
Center - the world's first dedicated recycling facility by a vehicle maker. Toyota leverages the center to
develop techniques to recycle cars and develop recycling information and training that could be provided
to suppliers and other automobile recyclers.
Toyota is using plant-base polymers in some seat cushions of its cars as well as using recycled plastics
throughout the vehicle (about 100 parts account for about 20 percent of the plastic weight in the car).
Toyota has been recycling replaced bumpers since the early 1990s leading to the collection and recycling
of one million bumpers in Japan.
Toyota has been investigating the recycling of minerals (ferrous metals, coper, etc.) as well. The company
has established and implemented the world's first automobile shredder residues (ASR) recycling process.
Toyota is also engaging in recycling of car batteries to be primarily used in stationary energy storage such
as solar photovoltaic energy storage at Yellowstone National Park. In addition, Toyota started a pilot
program to sell refurbished hybrid batteries in November 2015. Assuming this project is successful,
Toyota envisions expanding it nationwide.
Ms. Sakai indicated that Toyota hopes to deploy these recycling and circular economy efforts to more
countries where Toyota does business.
Questions from workshop participants to speakers:
• Question: Were Toyota's plastic recycling activities supported with life cycle analysis (LCA) studies to
determine environmental hotspots and benefits?
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- Toyota is still working on this project. Toyota still has several issues it needs to overcome, but
knows it's a beneficial program to increase resource efficiency.
• Question: Is Toyota only recycling batteries for electric vehicles or is it recycling batteries from all
vehicles? Are non-Toyota batteries recycled?
- Currently, Toyota recycles only Toyota hybrid car batteries.
• Question: How is Italy engaging local governments to support the voluntary footprinting effort?
- Local governments participate on a voluntary basis; the Ministry of Environment has been
engaging them to help with selection of methodologies for how to test and quantify emissions
and how to assess whether the work has been done correctly. Now that the ministry has
reached the more formal phase, it has provided support to a technical committee that helps
local governments.
• Question: What is the role of engineering schools and business schools in making efforts such as the
program started by the UK Department for Environment, Food and Rural Affairs sustainable? About
10 years ago, Canada had a program where students helped small- and medium-sized enterprises,
but once they left, the companies went back to their old ways. What is the role of schools? Can
resource efficiency be turned into a discipline?
- There are a number of different models, but the program found that larger organizations
could really play a role in terms of actually seeing the benefits resource efficiency can play in
improving the performance of their supply chains. Schools certainly have a role to play here
as they often are the source of innovation. However, by working with larger businesses to
share and test new practices, they may have more impact.
• Question: What is the best way to keep the keeping momentum going? There have to be monetary
incentives. For example, PepsiCo looked at resource conservation in its plans and found ways to
save water and energy, and it is money that drove those reduction efforts. Showing monetary value
and the associated data to plant managers is key to promoting resource efficiency efforts. In addition,
how do companies make sure what they manufacture gets to the consumer and gets used, rather
than wasting the time and energy making products that do not get used? Is anyone studying how
much that might cost?
- Ms. Mathar stated that at the division level, BMW's sustainable strategy needs to have very
concrete measureable targets for management. By incorporating LCA into strategies,
resource efficiency is driven down through the supply chain.
• Question: Chrysler has internally identified a lot of opportunities to use recycled content and
encourages its suppliers to present these types of solutions. However, issues arise when Tier 1
suppliers are reluctant to use recycled materials because they already have approved materials. How
can this be addressed?
- For the BMW Group, it is essential that its business partners meet the same environmental
and social standards BMW has set for itself. The BMW Group Supplier Sustainability
Standards are the foundation on which this process is based. The standards establish basic
principles that are to be adhered to by all BMW Group suppliers. This includes compliance
with all internationally recognized human rights as well as environmental, labor and social
standards. The BMW Group Sustainability Standard is an integral part of the request for
proposal documentation for new suppliers and is thus a key tool in the integration of
Sustainability aspects into the procurement process.
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* Ms. Mathar said BMW makes it part of yearly discussions with its top 100 Tier 1
suppliers. These are high-level discussions between BMW Senior Managers and
Supplier owners and/or board members. The outcomes of these meetings are concrete
sustainability measures. In addition, this makes it a topic of conversation within the
supplier groups that helps embed it into their culture. In addition, BMW's procurement
staff is trained on the relevance of sustainability aspects for their procurement decision. A
supplier has to meet certain levels of sustainability to be deemed an option.
4.5 BREAKOUT SESSIONS - UPSTREAM (CONVERSATION STARTER SUMMARIES)
Each breakout session began with one or more success stories or best practices (conversation starters)
followed by group discussion. Conversation starter summaries are captured below. Participants reported
on the results of their breakout sessions to the full plenary. These report outs represented the statements
and ideas of individuals and not consensus among the group. See Attachment 2 for full summaries from
these sessions where additional best practices, challenges and opportunities, and potential practical
ideas for action were discussed.
4.5.1 How can we use the design process to improve resource efficiency from a
life cycle perspective?
Ms. Carrie Pearson, 3M - Integrating Sustainability into the Design Process. Ms. Pearson
provided an overview of 3M's efforts to infuse life cycle thinking into its design process using a
standardized handbook that helps ensure designers consider life cycle impacts. All new products undergo
life cycle management (LCM), a qualitative process that embeds life cycle thinking into the design
process. If necessary, some products then undergo a full LCA. She emphasized that this handbook,
which helps standardize the process and a corporate commitment to sustainability helps instill a level of
awareness about the importance of resource efficiency across the organization. This corporate
commitment is reflected in the company mission statement including explicit language about the
importance of sustainability by leadership, a dedicated LCA team that is available to anyone across the
company, processes and procedures that integrate life cycle thinking into regular business processes,
and company participation in corporate sustainability indexes.
Mr. Werner Loscheider, Federal Ministry for Economic Affairs and Energy, Germany - Light-
weighting. Mr. Loscheider provided insights into how Germany is handling one design challenge in
industry - lightweighting. Given that the majority of production costs are driven by raw material costs,
industry is particularly attuned to resource efficiency. Industry feels that resource efficiency is a win for all
stakeholders; the economy benefits from higher competitiveness, the environment benefits from lower
emissions and there is beneficial social development from safeguarding and creating jobs.
4.5.2 How can we improve how we use life cycle information and life cycle
thinking to set goals and better inform resource efficiency decisions?
Dr. Jim Fava, Co-chair (with Mark Barthel) of the Hotspot Project (prerecorded video introduction).
Dr. Fava discussed the work that he is involved in with the United Nations Environmental Programme
(UNEP) and the Society of Environmental Toxicology and Chemistry to develop a hotspots analysis
methodology framework which can be applied at the product category, sector, city and national levels.
Hotspots analysis is used to identify high priority impacts (e.g., water, energy waste, etc.) and life cycle
stages (e.g., raw materials acquisition, manufacturing, transportation, use and end-of-life) to inform
decisions. Hotspots analysis is often used to identify actors who are most appropriate to work towards
taking actions to reduce the negative impacts identified by the hotspots analysis. It is also used as a pre-
cursor to developing more detailed or granular sustainability information. Additional information about the
UNEP's Hotspots Project can be found in the report at the following website: http://www.life
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cycleinitiative.org/wp-content/uploads/2014/12/UNEP-Hotspots-Mapping-Project-Final-Report-Phase-
l.pdf
Mr. Ron Voglewede, Whirlpool. Mr. Volgewede discussed the ways in which Whirlpool has used
hotspots analysis in its processes and provided recommendations for how this tool can be used
successfully. Whirlpool has used hotspots analysis to look at a variety of different factors to reduce waste
and increase viability of its products. Whirlpool has looked at the raw materials used to produce its
products, how it packages its products to reduce waste, emissions from the production and use of its
goods, and the social and economic impacts its products have. Hotspots analyses are designed to focus
on a specific issue; however, it is important to identify the right issue and have the scope clearly defined.
The hotspots analysis should be driven by the end goal or outcome of the analysis. Engaging
stakeholders, including small- and medium-sized enterprises (SMEs), and looking at other hotspots
analyses and LCAs are all beneficial to the process because they help to identify the desired outcome
and inform the work that is being done while reducing redundancies and improving the process. Hotspots
analysis not only informs a single desired outcome, but also aids in broad-level impacts beyond a single
project. Development of standardized and harmonized views by types of products by how they are
produced, their uses (especially energy usage) and where those use cases occur will inform better focus
on those relevant impacts that promote better design.
Dr. William Flanagan, General Electric (GE). Dr. Flanagan shared GE's structure and process for
using key decision support tools that incorporate life cycle information. He described how the tools
facilitate more informed decision-making. Initially, Dr. Flanagan and his team quickly recognized that
measuring the carbon footprint of GE's supply chain would distract resources away from the company's
real opportunity to contribute to sustainability, which is its ability to develop game changing products and
technologies and deploy them on a global scale. So, while GE developed internal capability to perform
detailed LCAs following the International Organization for Standardization (ISO) 14044 guidelines, it also
developed a screening LCA tool and a qualitative environmental LCM tool, which is designed to rapidly
identify issues which would not necessarily be identified in a typical LCA.
The content of the LCM tool was developed based on external stakeholder mapping with the intent of
educating and guiding tool users about life cycle perspectives that are important to a broad range of
stakeholders, and the importance of particular stages of a product's life cycle. The tool also includes
customizable business context filters that allow content (topic areas) to be weighted differently depending
on the product category or industry.
The GE LCA screening tool does not require substantial data collection. GE has populated the tool with
average impact scores for a broad range of materials, such as plastics, which prevents the over-collection
of detailed materials information that may not be necessary at the screening level. This allows the
company to quickly analyze, for example, whether the materials impacts are significant relative to use-
phase impacts, given how a product is used. GE has also developed custom tools for specific product
applications and strategic customers.
GE has been "dashboarding" to identify areas, products or customers that might benefit most from
conducting an LCA. This is important, since GE cannot conduct LCAs for every single product. This
process allows the company to be strategic and selective in how it conducts LCAs, and how they add
market value, differentiation and so forth. In general, GE tries to customize every strategy in order to
maximize value for its customers, since GE would like to develop solutions that would "change the game"
rather than make incremental improvements to existing products. These tools also may be used to
perform priority assessment of supply chains. It is also important to look at material flows and translate
those variables into life cycle costs. The idea is to lower barriers for entry for companies to begin thinking
about LCAs, because making LCAs easier to understand, conceptualize and use is critically important if
their use is to be widely employed.
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4.5.3 How do we do a better job of identifying, communicating, and addressing
social impacts across the supply chain?
Mr. Jeff Morgan, MARS Corporation. Mr. Morgan provided an overview of MARS' efforts to identify
and communicate social impacts across the supply chain. MARS' goal is to have sustainable supply
chains - economic, social and environmental sustainability. A major challenge is in the agricultural supply
chains and those within underdeveloped countries. Some specific challenges encountered include: 1)
high levels of poverty among small holder farmers due to low yields; 2) poor farm practices; 3) exclusion
of women from income; and 4) poor education opportunities.
Cocoa, as a crop, is highly labor intensive; however, farmers may not be well organized. MARS worked to
take a holistic approach to address productivity and social issues. Mr. Morgan highlighted key practices
such as a focus on women's empowerment, availability and access to better planting material, improving
training and working to improve labor practices (i.e., reducing hazardous conditions). He stressed the
need to consider the cultural aspects of a country where the supply chain resides when determining
actions for improvement. For example, in some cultures, the family, including the children, traditionally
farms the land.
Mr. Morgan's major lessons were: 1) knowledge and understanding of the culture and social environment
of the supply chain is critical before taking action; 2) media plays an important role - both positive and
negative; and 3) positively addressing social impacts takes time (25-30 years).
While his comments were focused on cocoa, he felt these practices could be applied more broadly to
agricultural processes and artisanal production of goods and materials.
Mr. Kevin Funk, U.S. General Services Administration (GSA). Mr. Funk provided an overview and
demonstration of GSA's tool created to help organizations incorporate social impacts into purchasing
requirements. The tool came online in February 2016 and will be updated as new best practices and tools
are identified. It helps users identify and address their high-risk areas. The tool can be found at:
https://sftool.gov/plan/545/social-sustainability.
4.5.4 How can we improve communication and share information about resource
efficiency across the supply chain?
Mrs. Sue Rokosz, Ford Motor Company. Mrs. Rokosz provided an overview of Ford's Partnership for
a Cleaner Environment (PACE) Program through which leading environmental practices are shared
between Ford and its suppliers. As participants in the program, suppliers select leading practices
applicable to their operations, create a roadmap for improved efficiencies, collect relevant baseline data,
implement the leading practices and report environmental metrics to Ford. The PACE Program ensures
two-way communication between Ford and its suppliers and that they are able to share information,
leading practices and lessons learned.
Mr. Jason Pearson, Sustainable Purchasing Leadership Council (SPLC). Mr. Pearson described
the work of SPLC, a group of over 150 leadership organizations across the public, private and civil society
sectors that collaborate to develop a shared program for guiding, benchmarking and recognizing
leadership in sustainable purchasing. SPLC equips procurement professionals with resources to make
strategic institutional purchasing decisions that send a collectively harmonized message down the supply
chain regarding the value of sustainable products. One such resource is SPLC's Guidance for Leadership
in Sustainable Purchasing, released in 2015. This document provides recommendations and best
practices for creating a strategic sustainable purchasing program using the concept of a strategy cycle.
The document also provides guidance on sustainable purchasing for eight priority purchasing categories.
Overall, the SPLC provides a forum through which purchasers and suppliers can work together to share
best practices, encourage alignment and promote market transformation
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4.6 CIRCULAR ECONOMY PRINCIPLES IN ACTION (PLENARY SESSION)
4.6.1 Mr. Jean-Francois Gaillaud, Ministry for Economy and Industry, France
Mr. Gaillaud described the efforts of the French government to apply the concept of the circular economy
(CE). He noted that in France, resource efficiency is closely associated with combating climate change.
Therefore, resource issues and CE have been integrated in a bill for energy transition and green growth.
He reminded the audience of the success of the Conference of Parties 21 (COP21) in Paris.
CE is a keystone for France's transition to green growth. The energy transition bill also recognizes that
prevention and recovery of waste are key elements of a more circular economy, which is itself a mean to
become more resource efficient. Waste is a resource: it is a source of added value and a source of
security of raw materials and energy supply. Reuse and recycling can decrease the need for virgin
resources and support the decoupling of growth and resource consumption.
France expects to create 25,000 jobs related to CE and is trying to develop a strategy to move towards
CE more fully. France is also focusing on a more sustainable public procurement policy to meet national
objectives to cut landfill use in half by 2025 and increase recycling rates to 65 percent by 2025. France is
engaging the business community by working with the National Council of Industry on the different
aspects of resource efficiency and CE.
Mr. Gaillaud noted that the Committee for Strategic Metals was established in 2011 to strengthen the
security of the supply of raw materials for the French economy and increase its sustainable
competitiveness. France also established an information platform to enable easy access to knowledge
about mineral resources, including criticality sheets.
Mr. Gaillaud also noted that research and development are an important component of the transition to
sustainability.
4.6.2 Dr. Philippe Schulz, Groupe Renault
Renault has worked to apply the concept of CE in its day-to-day business practices. CE is not just one
concept. At Renault, investments have been realized in different steps of the various CE loops. The
economic stakes for car manufacturers are huge, since raw materials account for about 15 percent of the
vehicle manufacturing cost. Moreover, metallic scraps usually represent 30 percent of the input materials
in plants.
Dr. Schulz noted that Renault wants to secure strategic material supplies, such as copper, aluminum and
plastics, because material price variability can have significant impacts. Renault has a subsidiary, Renault
Environment, with different CE-related subsidiaries. For example, Indra, a 50:50 joint venture (JV)
between Renault and Suez Environment has a network of 300 dismantlers in France, providing access to
roughly 20 percent of French end-of-life vehicles (ELV). By linking the experiences of Renault as a
manufacturer to these end-of-life resources, it provides valuable insights for car dismantling. By
recovering wires from ELV and re-treating them, Renault has been able to recover enough copper
through recycling to meet its current copper needs in French foundries (powertrain production). Current
low commodity prices reinforce the need to close the loops.
Remanufacturing mechanical parts is another example of activity performed in the Renault CE program,
in a dedicated plant at Choisy (France), driving annual revenues of about 200 million euro.
It is absolutely a necessity to be part of all those loops to make a competitive business case. Renault has
also a lot of research and development partnerships, because technology is different from one loop to the
next.
• Question: The presentation by Steve Evans noted the challenge of national boundaries and rebound
effects and then normalization. The narrowest definition of CE is a closed loop of technical materials.
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The most open definition is a substitute for world sustainability. It seems that France's national policy
seems to follow the narrow definition. Are there complementary approaches are being used in
tandem?
- Mr. Schulz stated that Renault is a member of the Ellen MacArthur Foundation on CE,
assessing criteria potential to assess boundaries effect on resource efficiency and CE.
Renault believes that CE is a very broad concept that needs to be properly defined, for all
kinds of loops (e.g., remanufacturing, reuse, recycling).
• Question: How does Renault interact with auto dismantlers?
In France, there are many small dismantlers with specific processes and that are not always
very professional, but in the past 10 years there has been a shift toward more
professionalism. There is still a lot of room for additional improvement, but it has improved.
4.7 TOOL TIME: TOOLS AND RESOURCES TO ACCELERATE RESOURCE
EFFICIENCY (PLENARY SESSION)
4.7.1 Mr. Paul Yaroschak, U.S. Department of Defense (DoD) - Sustainability
Analysis Tool
DoD is a big purchaser of very complex systems that often last many years. These systems use large
quantities of resources during manufacturing, operation and maintenance. In order to make better design
decisions that minimize impacts to human health and the environment, DoD has developed a
sustainability analysis that combines LCA and Life Cycle Costing (LCC). The LCC element is particularly
important because most decisions are based on financial considerations such as total cost of ownership.
A web-based tool is being developed that automates the process for people who are not LCA experts.
The results provide the relative human health and environmental impacts of alternatives and the total life
cycle costs. There are three types of costs displayed: Internal costs (DoD will pay at some point in life
cycle); external costs (those that society pays); and contingency costs (may occur depending on future
events such as costs due to non-availability of a chemical due to regulatory phase-outs).
DoD has completed five successful pilot projects to test the sustainability analysis with Boeing, Sikorsky,
Lockheed Martin, 3Ma and GE-Aviation. DoD plans to provide demonstrations of the web-based tool to a
DoD review group, an industry peer review group, and state and federal agencies.
4.7.2 Mr. Joe Cresko, U.S. Department of Energy (DOE) - LIGHTEn-UP and MFI
Tools
DOE is trying to develop tools and techniques to address loss within the industrial sectors.
The goal of Lifecycle Industry GHgas, Technology and Energy through the Use Phase (LIGHTen-UP) is
to have a transparent tool that is easy to use. The underlying data for the tool comes from environmental
impact assessments. Using this tool and its datasets, you can get a sense of the impacts of material
changes. The goal is to have a web-based version available to the public in 2017.
The goal of the Materials Flows through Industry (MFI) tool is to determine the embedded energy in a
product, material or process.
These tools are currently under development and if any workshop attendee is interested in participating in
a pilot of these tools, please reach out to Mr. Cresko (joe.cresko@ee.doe.gov).
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4.7.3 Ms. Elisa Tonda, UNEP - Global Network of Interoperable LCA Databases
The development of the Global LCA Database Network is being led by a UNEP steering committee
composed of thirteen governments and facilitated by UNEP.
The steering committee of the initiative established three technical groups to support the development of
the global network (network architecture and technology; nomenclature; and metadata descriptors).
The product will be a database of databases that will allow for a central user interface, enabling access to
nodes worldwide and ensuring interoperability through agreed nomenclature and metadata descriptors.
UNEP is anticipating a test phase before spring of 2017.
4.7.4 Mr. Charles Shoopman, University of Tennessee - Investing in
Manufacturing Communities Partnership (IMCP)
The IMCP program can be used as a successful model for promulgating best practices. It was conceived
as a way to get federal agencies who have shared interests to leverage economic development initiatives
and funds while making it easier for leaders of local efforts to access federal assistance. It encourages
communities to develop comprehensive strategies that strengthen their competitive edge for attracting
global manufacturing and supply chain investments.
Launched in 2014, there are now 24 federally designated IMCP communities across the country with 12
federal agencies participating in a program awarding more than $1.3 billion annually.
Some current plans address: workforce and supply chain challenges; infrastructure; research and
innovation; trade and investment; capital access; and operational improvement for manufacturing
companies.
4.7.5 Mr. Andrew Mangan, U.S. Business Council on Sustainable Development
and Andrea Brown, World Business Council on Sustainable Development -
The Materials Marketplace
The Materials Marketplace is a web/cloud-based collaboration tool developed over the past 20 years. It
allows companies to upload data about materials flowing through their operations and share that data
with peers from other companies. Business council experts work with the companies to find and test
possible material reuse ideas. The Materials Marketplace can be thought of as a place to explore reuse
and new supply chain opportunities.
The Marketplace also serves as a convening ground for diverse companies to work together on common
circularity goals, such as logistics, supply chains and policy development. For example, the Materials
Marketplace is working to define how and why materials reuse should qualify as a carbon reduction
strategy - both in the US and internationally. The World Business Council on Sustainable Development is
collecting the science and organizing the systems and verification techniques needed to support this idea.
As part of the scaling strategy, the World Business Council for Sustainable Development has put forward
a proposal to enact a similar program in Europe and is working with the European Bank for
Reconstruction and Development to implement a Materials Marketplace in Turkey.
In the United States, states are looking to support this as a statewide or citywide deployment. The plan is
to get over 100 companies in the U.S. involved in the Materials Marketplace.
4.7.6 Mr. Steve Gutmann - Stuffstr
Stuffstr is developing a platform to help reuse durable goods; this platform is meant to increase resource
efficiency in the retail sector (e.g., personal, physical assets). Rather than spending most of its useful life
in a basement or storage unit, a product can be recycled, donated or sold (downstream services) through
the Stuffstr platform. The Stuffstr app is currently available on request.
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4.7.7 Mr. Kevin Funk - Social Impact Tool
GSA has developed a social impact tool that can provide a framework for assessing and addressing
social impacts as part of the procurement process. It can be found at https://sftool.gov/plan/545/social-
sustainability
See Attachment 3 for a list of tools and resources suggested by participants.
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5 MARCH 23, 2016
5.1 OPENING REMARKS (PLENARY SESSION)
5.1.1 Dr. Wolfgang Scheremet, Director General, German Ministry for Economic
Affairs and Energy
Director General Scheremet noted that this workshop builds on the successful G7 events in Berlin,
Germany; Birmingham, UK; and Yokohama, Japan. He emphasized that everyone benefits from sharing
information with one another and networking at the G7 level. Cooperating at the international level is
essential to tackling bigger challenges such as sustainability, demographic change, globalization and
climate change.
Dr. Scheremet pointed out that resource efficiency, CE and understanding of the entire life cycle of
products are essential economic issues which affect every sector and every possible economic activity,
but also every consumer and every institution, both private and public. These issues need to be viewed
from a positive perspective. They have tremendous potential for value creation, if careful decisions -
driven by economic sense and technical feasibility - are made. Ultimately, resource efficiency has to be
accepted and implemented by companies, and is part of delivering products needed by consumers. The
industrial sector is therefore key to sustainability, growth, employment and environmental protection.
Dr. Scheremet underlined that digitalization and ICT will play a central role as enablers of environmental
innovations. New technology makes it possible to actually see products throughout their life cycle and to
view the entire value chain.
In 2013, Germany invested around 53 billion euros in research and development, partly for using raw
materials more efficiently. Because raw materials are a significant part of production costs, it is in a
company's best interest to use these materials efficiently. Germany is highlighting this in its revision of its
national resource efficiency program. It lists opportunities for action along the entire value chain.
Germany wants to take action through a voluntary approach and continue to emphasize cooperation with
the business community and provide incentives to encourage progress. Germany also wants to
strengthen links between material efficiency and energy efficiency to take advantages of synergies. In the
end, resource efficiency is not just a measure of the G7, but of all countries that produce goods.
5.1.2 Ms. Gina McCarthy, Administrator, U.S. Environmental Protection Agency
U.S. EPA Administrator McCarthy discussed the environmental and economic benefits of sharing
knowledge and best practices on resource efficiency, known as sustainable materials management in the
United States. She reiterated that countries share the goals of meeting global resource challenges,
keeping businesses prosperous and sustaining the natural resources that future generations will depend
on. She noted that resource efficiency also offers opportunities for meeting the Intended Nationally
Determined Contributions (I.N.D.Cs) that underpin the Paris Agreement.
In laying out U.S. progress in resource efficiency, Ms. McCarthy cited EPA's on-going support for the
Suppliers Partnership for the Environment, and the agency's commitment to LCA research and
development. She urged colleagues to seize the opportunities that sustainable materials management
presents, and welcomed the chance to share knowledge and best practices.
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5.2 IMPROVING RESOURCE EFFICIENCY IN OPERATIONS, USE AND AT END-OF-
LIFE (OR SECOND LIFE) WITH SUPPLY CHAIN ENGAGEMENT (PLENARY
SESSION)
5.2.1 Mr. Yuji Yamaguchi, Ministry of the Environment, Japan - Japan's Initiatives
to Promote Resource Efficiency and the 3Rs in the Auto Sector
Mr. Yamaguchi described Japan's initiatives to promote resource efficiency and the 3Rs in the auto sector. In
Japan, by law, users are required to pay modest recycling fees at the time of a new car purchase. The recycling
fee is used for recycling of automobile shredding residue, airbags, etc.
Japan is actively promoting design for environment (DfE), recovery and utilization of secondary materials. For
example, Japan conducted a project, including a cost-benefit analysis, to evaluate the efficiency of the
dismantling process. The purpose of this project was to identify opportunities to influence the design process to
improve the recycling process and to assess the effects of these design changes on car selection by
consumers. Results did suggest a possible effectiveness of DfE approaches to reduce the dismantling time,
especially for parts that normally take longer to dismantle than others.
A second project looked at how to promote proactive selection of "eco-premium" cars (e.g., cars that are easier
to recycle or uses more recycled materials) by lowering recycling fees for these cars. This could not only drive
demand for "better" cars, but also increase the availability of recycled parts.
Finally, a third project was designed to investigate ways to incentivize higher use of reused parts. The project
looked at pre-agreement type production and supply models for reused parts and included stakeholders such
as car leasing companies, repair factories and parts suppliers. This effort led to a 30 percent increase in the use
of reused parts.
5.2.2 Ms. Lynn Laszewski, PepsiCo - The Realities of End of Life Resource
Efficiency
Ms. Laszewski described PepsiCo's experiences in trying to enhance its polyethylene terephthalate (PET) plastic
recycling, commonly used to make bottles and other containers. In 2010, PepsiCo started a program to bring
used bottles and cans back to PepsiCo. The company began looking at this issue in an attempt to increase the
amount of recycled PET in its bottles. To do this in a cost effective manner, PepsiCo had to identify potential new
sources for recycled PET and also tried to increase the supply of PET which was being recycled. PepsiCo
developed a pilot program of electronic kiosks that encouraged recycling by giving consumers rewards for
recycling. This program provided some insight into consumer recycling habits, but was ultimately decided to be a
niche solution because the electronics used in the program are difficult to maintain and expensive.
PepsiCo has also developed programs with schools to encourage kids to collect bottles to earn money for their
schools. This program will not only provide material to be recycled, but it teaches children how to recycle and
instills in them the idea that recycling is the correct path going forward.
PepsiCo decided to focus its efforts on venues that generate a lot of waste. Specifically, they have focused on
recycling at sporting events by partnering with the National Football League and Major League Baseball. These
organizations were very interested in having recycling at their events to lower their amount of waste. The PepsiCo
program found a method that increased recycling without having to place static bins throughout the tailgating
area. Therefore, in addition to focusing on venues with high amounts of waste, PepsiCo developed systems to
make it easier for people to recycle.
PepsiCo also focused on recycling at its own facilities and events. Through this work, the organization has found
ways to increase recycling in similar environments.
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PepsiCo has been successful because it collects data and uses it to make programs more nimble and agile.
Being able to make changes quickly allows the programs to not only survive but thrive.
Ms. Laszewski concluded by noting that it cannot be assumed that recycling program costs will be covered by
recycling revenues. By incorporating PET recycling into its processes, PepsiCo has lowered its cost of recycled
PET material. Companies have to be willing to commit to programs even when they do not generate a lot of
revenue.
5.2.3 Mr. Adam Muellerweiss, Johnson Controls - Insights from the Circular
Economy of Automotive Batteries
Mr. Muellerweiss described Johnson Controls experiences in establishing a closed loop for automotive
batteries. He noted that lead acid batteries have a recycling rate approaching 99 percent across the G7
countries, especially when compared to the fact that in industrial economies, three-quarters of raw
materials used in most products end up in landfills.
He mentioned that the automotive battery recycling model is radically different from the traditional linear
model - the supply chain begins and ends when a customer returns a battery. There is no upstream or
downstream and no real producer responsibility. There is no end of life, just end of use; this is a radically
different concept that the battery recycling industry learned and now takes for granted.
End of life should not be considered as simply waste and pollution and an externality- it is system loss
which is inefficiency and potentially harmful to the environment. What Johnson Controls learned and
continues to learn is that everything in the cycle and every player is linked. Even internally, silos must be
traded for systems. There is a lot of complex cycling when the supply chain begins and ends with
customers.
Mr. Mullerweiss noted that standardized materials help drive efficiency. The lack of standardization can
be a significant issue. For example, in the 1990s, one battery manufacturer introduced silver into its
product, which improved battery performance, but disrupted the recycling system because the system
was not designed to account for the minor addition of silver. To be successful, every step of the process
must be considered. It is more than just vertical integration of the supply chain; it is participation in a
circular process.
In many countries, it is not possible to follow a model where batteries are delivered to the store and old
batteries are taken from there to be recycled, because the Basel Convention treats used batteries as
hazardous materials. Well-intentioned regulations and rules can in reality erode value proposition for
recycling and reuse.
It would be beneficial to develop a similar cycle for advanced batteries, but given that their formulations
are evolving so frequently the corresponding recycling technology would have to continually change.
5.2.4 Mr. Peter Bartel, Robert Bosch - Ensuring Long-term Availability of
Remanufactured Spare Parts
Mr. Bartel discussed the importance of life cycle thinking and ensuring the long-term availability of
remanufactured spare parts. When designing parts, industry should think about the use phase and then
the possibility of recycling. The critical point is to optimize production because in the use phase spare
parts are needed.
He pointed out that in general, people should look to reuse and remanufacturing before recycling. In
recycling, you can lose all of the functionality of the original product. However, it is more difficult to design
a product with reuse and remanufacturing in mind.
In Mr. Barters experience, the only difference between a remanufactured part and an original part is that
the raw materials being used are components from used cars not raw materials. There are many
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advantages of using remanufacturing including decreases in raw material use (88 percent), CO2
emissions (53 percent), and energy (56 percent).
Industry can only achieve reuse through eco-design by ensuring the product can be recycled or
remanufactured at the end of the day.
Finally, Mr. Bartel noted that to truly embrace the CE mindset, industry must educate consumers that
purchasing a remanufactured part or a product in its second life does not mean you have a subpar
product. Consumers should be proud to use a product in its second or third life.
5.2.5 Dr. Paolo Masoni, Italian National Agency for New Technologies, Energy
and Sustainable Economic Development (ENEA) - Extracting Value from
End-of-life Materials: Car Shredding Residues and Tires
Dr. Masoni discussed two new technologies that are aimed at adding value to car shredding resides and
exhausted tires. He began by noting that all innovations have hotspots and tradeoffs that should be
carefully assessed. This is particularly true for closed-loop processes.
Car shredding residues are an example. The EU generates approximately 2.4 million tons of car
shredding residues each year. ENEA is examining treatment of this residue. Its LCA shows that an
industrial-scale plant treating this residue can recover almost 74 percent of the energy content of the
residue; moreover, LCA can inform the scaling up from pilot tests identifying strategies to reduce the
environmental impacts.
ENEA is also trying to add value to used tires by using gasification and pyrolysis treatments and a plasma
torch to produce silicon carbide. ENEA is testing processes and performing a life cycle sustainability
analysis (LCSA) and LCA. ENEA has also performed a preliminary market analysis. Electricity production
is a byproduct of the process, and the environmental impacts are also comparable for reference
technology. ENEA also assessed the social impacts through social LCA.
Overall, Dr. Masoni sees LCA and LCSA as powerful methodologies to identify hotspots and tradeoffs.
They provide recommendations for the full development and deployment of innovative technologies.
5.3 BREAKOUT SESSIONS - OPERATIONS, USE AND END-OF-LIFE
(CONVERSATION STARTER SUMMARIES)
Each breakout session began with one or more success stories or best practices (conversation starters)
followed by group discussion. Conversation starter summaries are presented below. Participants reported
on the results of their breakout sessions to the full plenary. These report outs represented the statements
and ideas of individuals and not consensus among the group. See Attachment 4 for full summaries from
these sessions where additional best practices, challenges and opportunities, and potential practical
ideas for action were discussed.
5.3.1 How do we incorporate and improve efficiency in other areas such as
water, energy, land, etc...?
Mr. Bruce Uhlman, BASF. Mr. Uhlman provided an overview of BASF's sustainability programs and
resource efficiency initiatives, including its programs with suppliers to meet resource efficiency targets in
the areas of energy, water (through its efforts to develop a comprehensive water management system),
safety, and health and security. The goal of these programs is to engage with suppliers around the
various issues and challenges surrounding sustainability. As a global leader in sustainability management
and measurement, BASF has developed a comprehensive, science-based Applied Sustainability Tool
Box for integrating life cycle thinking and LCA into its strategic decision-making processes and customer
engagements. Holistic assessments consider all three dimensions of sustainability: economic,
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environmental and societal. Most recently, BASF developed a process to systematically and consistently
evaluate the unique sustainability contributions of its entire portfolio. Through Sustainable Solution
Steering®, BASF was able to analyze over 60,000 products and their value chains considering industry-
and region-specific sustainability requirements. This detailed analysis and transparent classification and
communication allowed BASF to both improve individual solutions and steer its entire portfolio. The
results enabled further integration of sustainability into strategic, research and development (R&D) and
customer support processes (e.g., educating BASF's sales force on how to communicate product
sustainability information). The methodology and approach used by BASF for this effort have been
licensed by thinkstep, and are thus available to all companies.
5.3.2 How can we create value from waste materials?
Mr. John Bradburn, General Motors. Mr. Bradburn provided an overview of GM's sustainability efforts,
primarily focusing on GM's landfill-free manufacturing goal. GM has seen a total waste reduction of 40
percent. He noted that zero waste is a good barometer for success, but the ultimate goal is to establish
the programs that drive zero waste. GM is looking at creative reuse of materials in addition to recycling.
For example, materials from old tires are being used in new air bags and shipping boxes are used as roof
liners. Everyone has the ability to come up with ideas for reuse. Manufacturers have to be willing to
harness this input and have a commitment to continual progress.
Mr. Kevin Butt, Toyota. Mr. Butt provided insights into how Toyota views the business case for
sustainability: it appeals to some consumers and reduces long-term risks. Toyota is a zero-landfill
company, but not every plant is zero waste. Toyota is looking into ways to make that waste stream a
revenue stream. Toyota has some ambitious goals, like zero CO2 from tailpipes by 2050, but Toyota only
can have so much impact on the environment. He noted that others need to get together around good
ideas to scale them up to have a lasting impact. Mr. Butt presented a pilot project that used spent hybrid
batteries to create a power plant for a Yellowstone lodge that is off the grid. While no longer useful in
cars, these batteries can provide decades of additional use in such an environment.
5.3.3 How might we improve the recycling of vehicles at the end of life, both
increasing recycling rates and improving the recyclability of components?
Mr. Steve Fletcher, Auto Recyclers Canada (ARC). Mr. Fletcher provided an overview of Canada's
efforts to infuse life cycle thinking into the recycling of products. Not only are parts extracted that can be
refurbished or reused, but materials are processed, typically by shredding, so that they can be recycled.
He provided an overview of the National Vehicle Scrappage program in Canada, which was a program to
minimize emissions by reducing the number of high emitting vehicles on the road. There was a $300
incentive for vehicle owners to retire their cars, and all of the vehicles that were recycled as part of "Retire
Your Ride" were sent to audited auto recycler locations that agreed to follow a standard code of practice.
This code of practice served as the foundation for the Canadian Auto Recycler Environmental Code, a
voluntary program that is half compliance, half best practice. The Code was developed by industry from
the ground up, and approximately 500 businesses have gone through the certification process and are
participating in a variety of vehicle retirement programs managed by ARC. Mr. Fletcher also noted that
ARC coordinates with and communicates regularly with manufacturers on the recycling process. Finally,
Mr. Fletcher highlighted that access to parts data is a priority, and can improve the reuse and recycling of
vehicles, in addition to recalls.
5.3.4 How can we expand the use of remanufactured or refurbished parts?
Dr. Nabil Nasr, Rochester Institute of Technology. Dr. Nasr discussed his work with leading
companies to encourage remanufacturing and reuse. Dr. Nasr presented a holistic, systems perspective
on remanufacturing and refurbishment. He sees remanufacturing as the most important issue forgetting
to a closed loop economy and for improving resource efficiency - i.e., how to move the industrial world
from pollution control to industrial ecology.
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Dr. Nasr shared two specific examples of success stories. First, DoD is the largest remanufacturer and
refurbisher in the world, particularly with military vehicles. The second example was Cardone, a small
company with 5,500 employees that is taking innovative strides to get to zero environmental waste
discharge. Cardone remanufactures over 65 different product lines as part of waste elimination efforts.
In the 2011, the U.S. Council on Competitiveness, a collaborative effort between industry and the U.S.
Department of Commerce, led a strategic dialogue on remanufacturing. The dialogue identified
challenges and opportunities in three areas: research and development; trade and federal policy; and
public relations and legal issues.
Dr. Nasr also updated participants on the work of the UNEP International Resource Panel. That group
has identified remanufacturing as a key focus of future work and research because of its important role in
advancing the circular economy (CE) and innovation.
5.3.5 How might we expand the use of recycled materials to minimize raw
material use in a way that promotes resilience and competitiveness?
Ms. Jessica Sanderson, Novelis. Ms. Sanderson showed a video and discussed the process used by
Novelis to recycle aluminum. Novelis has developed an extensive network that allows the company to
process two million metric tons of scrap. Novelis recycles aluminum that is used in a number of different
industries from beverages to auto to architecture and promotes recycling of materials through designing
with recycling in mind and advanced sorting technology, including sorting different aluminum alloys. Ms.
Sanderson discussed the importance of partnerships and collaboration to increase the amount of scrap
taken back from customers, increase post-consumer recycling rates and enhance recycling infrastructure.
She also described some of the challenges associated with recycling, including: identifying materials that
are able to be recycled; negative public perception of using recycled materials; and the varying life spans
of different aluminum materials. Addressing these challenges is critical because there is not enough
recycled aluminum to meet demand.
5.4 AFTER LUNCH VIDEOS (PLENARY SESSION)
5.4.1 Dr. Alessandro Peru, Ministry of the Environment, Italy - Italian
Professionalism at the Service of the Environment.
When tires reach the end of their life, they are no longer considered "waste" but a valuable resource
instead. In order to collect and recycle the tires from the dismantling sector, Italy established a
Management Committee (Comitato per la gestione degli PFU), which deals with the overall cycle.
Setup by the Ministry of the Environment in 2011, which oversees its functions, the PFU includes the
Italian Automobile Association (ACI-Automobile Club d'ltalia), the federation which represents the
interests of all Italian drivers. The Committee is composed of five members, including ACI, which holds
the presidency and representatives of associations of: vehicle producers and importers; tire producers
and importers; and car dismantlers and consumers.
Thanks to the work of the PFU, in 2015, Italy collected 22,468 tons of end-of-life tires (ELTs) from
dismantled vehicles.
The number of collections made from dismantlers has increased. In comparison with 2014, the same
amount of ELTs was collected with fewer pickups. The number of pickups has increased from 3.231 to
3.295 (+2 percent).
Due the success of the initiative and through the wide involvement of the stakeholders, in the last three
years the fees of the recovery service have been reduced for motor vehicles by over 57 percent and for
trucks by 60percent. The Committee has chosen not to contract operators for energy recovery (fuel for
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cement factories or waste-to-energy incinerators) and instead it was decided to recycle 100 percent of
ELTs collected. Thus it follows a more environmentally sustainable path with two advantages: 1)
production of secondary raw materials; and 2) non-renewable raw materials are not consumed. By
recovering the materials, atmospheric emissions of 2 kg of CO2 for every kg of ELTs are avoided.
The main components recycled from ELTs are: rubber, equal to 70 percent of weight; iron metals (20
percent); and textile fibers (10 percent). The Committee is working to promote the emerging markets for
secondary raw materials.
5.4.2 REALGAR Innovate UK (video provided by Mr. Adrian Tautscher,
Jaguar/Land Rover)
To improve the environmental performance of its vehicles, Jaguar Land Rover needed to innovate and
incorporate aluminum into its design and manufacture process. Incorporating aluminum would lower the
vehicle body mass, improve fuel efficiency and, as a result, reduce the environmental footprint and
running costs for customers. However, Jaguar Land Rover wished to mitigate the energy and cost-
intensive nature of using primary (virgin) aluminum in the production process. To do this Jaguar Land
Rover worked collaboratively with its material supplier Novelis, Innovate UK (the UK's innovation agency)
and other partners. The result was a closed loop value chain that minimized the use of primary material
and maximized the use of recycled aluminum during manufacturing.
5.5 CRITICAL FACTORS FOR SUCCESSFUL IMPLEMENTATION (PLENARY
SESSION)
A panel discussion was held to explore two critical factors for successful implementation, namely scaling
up ideas and engaging in collaborative relationships across the supply chain and beyond.
5.5.1 Mr. Robert Larsen, Composite Recycling
Mr. Larsen provided information on the Composite Recycling Technology Center, a non-profit
manufacturing center whose business model is to divert carbon fiber from the landfill. The center's
mission is to benefit communities through job creation, education, environmental responsibility and
economic growth. The center focuses on proving there is a demand for recycled composite material and
is currently obtaining its material from large aircraft manufactures in the state of Washington. The goal is
to divert 1,000,000 pounds of carbon fiber in five years or less.
Mr. Larsen noted how low tipping fees remove some of the incentives companies have to recycle their
materials.
He has found that leveraging partnerships with universities and businesses in the State of Washington
has given them access to both researchers and testing facilities.
Mr. Larsen mentioned that making new products out of recycled carbon fiber takes only 5 percent of the
energy that went into the originally created material, creating a completely win-win situation. The longer-
term vision of the center is to install recycling processes at the end of production runs in factories that are
producing the scrap material.
Currently, the center is looking to stack investments from government, foundations and environmentally
responsible investment vehicles.
Overall, to move from the idea phase to the implementation phase takes visionary leadership and a
willingness to build coalitions across government agencies.
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5.5.2 Mr. Mike Mullin, Brambles Limited
Mr. Mullin described the company's commercial brands, CHEP Pallets, IFCO Reusable Plastic Crates or
RPCs and CHEP Containers and explained the company's business model. The company shares its unit
load devices (pallets for the fast moving consumer goods industry and other industries, reusable plastic
crates for the agriculture sector and containers for automotive, agriculture, general manufacturing and oil
and gas industries). These unit load devices are reused by its customers and designed for maximum
efficiency in transport. By reusing these devices and managing the logistics of moving the devices for its
customers the company is able to enhance the efficiency, cost-effectiveness and sustainability of its
customers' supply chains. The company's business model epitomizes the virtues of the circular economy
which emphasizes reuse and resource efficiency.
Some of the critical factors touched on were building understanding and trust between the various
stakeholders in the supply chain as well as those who influence the business environment such as
government. It is important to first understand the customers' goals and pain points or obstacles to
meeting the goals and then map out the customer's supply chains to identify opportunities for
improvement.
This is not a one way conversation but is a partnership between CHEP and IFCO and their customers. In
some markets solutions rely on multiple stakeholders including government and community
organizations. For example, companies that depend on farm products produced by small holders ask
CHEP and IFCO to help identify ways to strengthen the small holders' and SMEs' successful participation
in the value chain. Helping to reduce post-harvest food loss through a combination of better packaging
technology and improved logistics improves the financial wellbeing of small holders, strengthens the
consistent sourcing of fruits and vegetables to processers, manufacturers and retailers.
Brambles has found that governments are very interested in helping business and increasing trade from
an economic point of view. However at times, laws, regulations and tariffs (for example on reusable
packaging) can stifle the adoption of more environmentally preferable and economically viable solutions.
5.5.3 Mr. Steve Hellem, Suppliers Partnership for the Environment
Mr. Hellem described the Suppliers Partnership for the Environment's successful collaborative
environment. The Suppliers Partnership is a unique organization - it was created by a group of leading
OEMs and suppliers, with the supportive engagement of EPA, who were looking for constructive ways to
work within the supply chain.
The Suppliers Partnership is unique in that it is not an advocacy organization. This has positioned the
organization to have a great relationship with EPA. The organization's focus is to get the right people to
the table so they can really make constructive progress. It is about taking one step at a time, while taking
a long term view.
The key to making change is to have "spark plugs" - people who have vision and also an ability to work
within their organizations to make change and fuel corporate commitment. It can be difficult to push
change, especially when the global economy is down. The Suppliers Partnership focuses on the value
that resource efficiency can provide to overcome these concerns and address opportunities.
The Suppliers Partnership also has been able to support successful collaborations between large and
small companies. For example, GM collaborated with a number of Suppliers Partnership members with
special technologies and experience to turn used oiled booms from the Deep Water Horizon oil spill into
parts for the Chevy Volt.
5.5.4 Dr. Wolfgang Scheremet, German Ministry for Economic Affairs and Energy
Dr. Scherement described his thoughts on key elements for successful implementation of resource
efficiency. Successful implementation of resource efficiency requires the "Triple As" (awareness,
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acceptance and ambition). First, there is awareness. Public awareness and discussion about the
advantages of efficient use of resources is necessary. These conversations can be controversial, but they
are fundamental to the second "A," acceptance. Acceptance of resource efficiency across society,
including industry is important. Finally, ambition is needed to drive society and the economy towards
ambitious and realistic targets.
Each "A" is necessary for success and they operate sequentially. Awareness must come first. In
Germany, the public started a discussion about scaled use and the necessity to protect the environment
starting in the mid-70s. Now Germany has 30-40 years of public discussion on this topic. This has
strongly influenced acceptance in the society. Finally, after Germany had public discussion and
acceptance, the country was able to set ambitious, but achievable, targets. This is a cycle and not a linear
path. Once the goals are set, a country must work to achieve to maintain positive awareness. Positive
awareness drives acceptance, which provides support to the ambitious goals.
To ensure the highest level of success, countries must have effective, efficient and non-arbitrary
instruments to meet the targets.
The German program for resource efficiency has tried to follow these ideas. Germany has awareness in
the public and in industry. Germany has acceptance, and it has ambitious, but realistic targets that the
country is able to reach. It is not easy, but Germany is on track for success as it is 50 percent of the way
toward its targets and has five years left.
The corporate level has an analogous three Ts for driving change - incentives (e.g., positive returns),
investment and innovation. To foster the three Ts, Germany has R&D programs that support SMEs on an
industry-wide basis when they develop new resource efficiency technologies or services. There also are
corporate industrial research programs where SMEs form alliances with university research departments.
5.6 KEY OBSERVATIONS AND POTENTIAL NEXT STEPS OR ACTIONS IDENTIFIED
BY SECTOR-SPECIFIC GROUPS (PLENARY SESSION)
Participants were invited to separate into sector-specific groupings to consider key next steps or actions
individuals within the groups would like to see based on workshop discussions. Below are the outputs that
were shared from those sector-specific discussions.
5.6.1 Academia and Environmental Groups
Several areas could benefit from additional academic research and support from non-governmental
organizations. They include:
• Examining how to better incorporate remanufacturing and reuse of products into the supply chain.
Academia is ideal for this research because the subject matter requires a systems/multi-disciplinary
approach and would benefit from not being constrained by the paradigms of industry. This research
could then be used to inform government guidance and policy. Industry can support this effort by
providing data and resources necessary to complete the research.
• Designing a car, or other complex product, that requires no virgin material and has a transparent
supply chain (e.g., providing all stakeholders with detailed information on the materials, parts, end of
life options, preferred and expected usage). This design would allow for increased recycling efficiency
and lower the impact of the car compared to today's cars. Information on the material and energy
used throughout the car's or product's life cycle could then be made available to the international
community to be leveraged to make more environmentally preferable designs of other products.
Systems would have to be developed that would allow the sharing of this information in a manner that
does not negatively affect the firms that would have to manufacture and sell the cars.
• Developing national and international recognition programs or awards for resource efficiency
champions. This could encourage others to support resource efficiency. By staging these programs or
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awards through well-respected national and international organizations, it would encourage buy-in
and magnify the impact of the programs.
• Developing a national or international program to scale resource efficiency through the sharing of
best practices across sectors.
5.6.2 Other Industry Sectors
• Explore developing public-private partnerships to advance resource efficiency to transform the
economy and benefit society. These partnerships would include several different sectors and could
be value-chain specific. These partnerships also could help promote a common nomenclature and
provide an opportunity for information sharing.
5.6.3 Automotive Sector
• The automotive sector faces a number of challenges to the full implementation of resource efficiency,
including little communication between manufacturers and auto recyclers. Some of these issues could
be alleviated by manufacturers designing their cars to be recycled and sharing that design insight with
the recycling and waste management sector. Recycling could also be encouraged and improved
through greater standardization of parts and materials across manufacturers.
• The WCDSD platform is used to visualize progress of defined areas. It could be used to standardize
nomenclature, encourage disclosure, and share best practices. Perhaps at the next G7 meeting in
Japan, time could be allocated to better flesh out ideas. The G7 should provide a clear scope and
visualization of progress towards targets.
• Governments could allow the use of recycled parts in their fleets, not just remanufactured parts,
which could provide an incentive for further recycling of automobiles. To accomplish this,
governmental policies would have to be updated and industry would need to develop a standardized
list of part numbers to aid in procurement. Once the policy is proven successful (e.g., recycled parts
perform well in government vehicles), the program can be publicized to drive private sector interest in
recycled automotive parts. Resource efficiency efforts would benefit if manufactures would be willing
to coordinate and standardize common parts and recycling procedures.
5.6.4 Waste Management/Recycling
• The ultimate goal is to drive material to its highest use through market incentives that use clear
measurement tools applicable across sectors. This can be achieved through public-private
partnerships, potentially initially convened by EPA, that create guidance including boundaries and
definitions for metrics.
• Consider the 4Rs when designing new materials and parts and minimize barriers to 4R material. To
accomplish this, there needs to be leadership from large organizations and governments to set the
market expectations for4R material through corporate policies and government regulations that
ensure good market conditions for4R material.
• Promote materials destined for recycling and reuse as valuable resources and commodities and not
waste.
5.6.5 Government and Intergovernmental Organizations
• Use outcomes from this workshop to inform a G7 roadmap on resource efficiency.
• This work needs to be managed through a coordinating or facilitating mechanism to maintain
continuity because each year the G7 (and G20) presidency moves to another country which may
have somewhat different emphases than the previous presidency holder.
• It is important that we quickly take these ideas and determine short and long term goals.
• Governments face some specific issues in driving resource efficiency. First, there is a need for
access to standardized data across sectors. Perhaps, governments could work with other
organizations like the World Business Council for Sustainable Development who are working on
similar issues. Second, there needs to be institutional buy-in from governments. To aid with this, the
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May 2016 declaration of the G7 should contain language about identifying a coordinating or
facilitating mechanism to support the Alliance on Resource Efficiency and developing a roadmap.
5.7 CLOSING REMARKS (PLENARY SESSION)
5.7.1 Mr. Mathy Stanislaus, Assistant Administrator, Office of Land and
Emergency Management, U.S. Environmental Protection Agency (EPA)
Mr. Stanislaus thanked everyone for their level of participation in the workshop. He found this workshop
created one of the best conversations in which he has participated. He noted that the participants form a
real brain trust for resource efficiency. He found the participants to be insightful leaders who bring passion
to this work. He believes that the outcomes that all participants want will require continuing engagement
by everyone.
5.7.2 Mr. Masahito Fukami, Counselor, Ministry of the Environment, Japan
Mr. Fukami noted his appreciation for everyone's participation over the last two days. He expressed his
sincere gratitude to EPA in coordinating the workshop. Through this workshop, he noted that all
participants have been able to deepen their understanding about supply management and promoting the
3Rs. Participants shared best practices and promoted key concepts of life cycle thinking.
Japan, as president of the G7 in 2016, recognizes the importance of promoting the 3Rs. The next
meetings of the G7 will be held in Japan. As a result of this workshop, Japan will carefully consider G7's
continued role in this area.
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6 ATTACHMENT 1 - RESOURCE EFFICIENT VEHICLE OR
PRODUCT OF THE FUTURE IDEAS POSTED TO THE WALL
DURING THE WORKSHOP
6.1 RECYCLING
• The challenge of auto shredder residue
• Work at Argonne National Lab on Auto Shredder Residue is promising. Use of hydrophilic and
hydrophobic principles of polymers to separate
• MBA polymers use ASR feedstock to produce PP, PE, etc.
6.2 RE-USE
• Do we need to change standards, codes, insurance for reuse?
• Barriers for reuse of materials - building codes are an institutional barrier
• Recovering metals and materials from electric vehicles
• Pass on company electrical vehicles to teenager and grandmother
• Process improvements to enable resale of materials at end-of-life, driven by waste/byproduct market
palaces (e.g., waste hub - www.waste-hub.com')
• Use 3D printing to "create" replacement parts
- Printer inputs should come from recycled/reused materials
• Auction of imperfect auto parts
• Government fleets reuse recycled auto parts
• Can put recycled parts, no new parts on all vehicles
• Use old part for new uses - for example, they are using Chevy Volt battery covers as animal habitats
• Reuse of spare parts from auto industry
6.3 INFORMATION SHARING
• Access to part numbers is crucial - using part numbers allows connecting consumers with needed
parts
• Incentive for auto manufacturers to share information
• Valuable to have conversations across the supply chain
• STDs to be develop to review new technology and validate it to know it is effective both
environmentally and cost wise. Lastly, to publish these finding as a resource so they can use the
knowledge. And be sure that these steps to achieve the end goal will be shared...???
6.4 INFLUENCING CONSUMER PREFERENCE
• Something that is missing from the discussion is how to influence consumer preference. Currently, a
relatively small segment of consumers consider sustainability or environmental impact in their
automotive purchase decisions. They are about cost, performance, style, safety and saving money at
the pump. So how can we change or influence consumers to make environmental impact and
sustainability a key factor in their purchase? Consumer demand preferences drive change.
• Need programs to educate the consumer about their influence and responsibility with respect to
product use and consumption and their impact on product end-o- life. To change the mind set of our
"throw away" society, and influence behavioral change, education is vital.
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• Educate about re-use and recycling in the schools (e.g., old stop smoking campaigns play, in part, on
kids pressuring parents. Why not the same for recycling electronics, plastics, paper, etc.?)
6.5 VEHICLE CHARACTERISTICS
• Can be powered easily by a variety of energy sources, especially renewables
• Uses only materials absolutely needed -> avoid excess
6.6 N/A
• We all want to be part of the family - not take over the family
• Circular economy
• Context of the ELV problem/opposition
- USA = 15 million ELVs/year
- Would form a line from NY to LA. Lots of vehicles.
6.7 FINANCE
• Challenge of financing of system - how to account for value of dismantled building?
• Consider number of man hours in both manufacturing and recycling as part of life cycle costs
6.8 LIFE CYCLE
• UCSB Automotive Materials Comparison Model
- Vehicle Energy and GHG Model
- Authored by Dr. Roland Geyer, UCSB
• Design Advisor
- First order component Model
- MASS, COST, and GHG Analysis at vehicle vel.
• Available at www.worldautosteel.org
• Connect the dots - swing a deal
• Concerning vehicles - LCA reflects that fuels are the biggest environmental impact of cars - yet
limited discussion on that. Need to make connection between electric and the fossil fuel grid that runs
them in the U.S. Is that an improvement?
6.9 POLICY
• Another tool for change is adapting policies like zero waste and setting up certification systems to
drive change like U.S.-Green Building Council did with LEED
6.10 GOVERNMENT MANDATES
• Government mandates availability of parts including recycled
• Problems with recalls is with parts - government could include recyclers in the solution
• National governments are not the sole policy influencers. State and local governments in U.S.,
provincial and prefectural governments in other nations play important roles too. Also, insurance and
financial firms play a significant role in making policy work or fail.
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7 ATTACHMENT 2 - UPSTREAM RESOURCE EFFICIENCY
BREAKOUT DISCUSSION NOTES
(Note: Items captured reflect individual (or organization) input during discussions and should not be
viewed as consensus statements.)
7.1 HOW CAN WE USE THE DESIGN PROCESS TO IMPROVE RESOURCE EFFICIENCY
FROM A LIFE CYCLE PERSPECTIVE?
7.1.1 Conversation Starters
Ms. Carrie Pearson, 3M - Integrating Sustainability into the Design Process. Ms. Pearson
provided an overview of 3M's efforts to infuse life cycle thinking into its design process using a
standardized handbook that helps ensure designers consider life cycle impacts. All new products undergo
life cycle management (LCM), a qualitative process that embeds life cycle thinking into the design
process. If necessary, some products then undergo a full LCA. She emphasized that this handbook,
which helps standardize the process and a corporate commitment to sustainability helps instill a level of
awareness about the importance of resource efficiency across the organization. This corporate
commitment is reflected in the company mission statement including explicit language about the
importance of sustainability by leadership, a dedicated LCA team that is available to anyone across the
company, processes and procedures that integrate life cycle thinking into regular business processes,
and company participation in corporate sustainability indexes.
Mr. Werner Loscheider, Federal Ministry for Economic Affairs and Energy, Germany - Light-
weighting. Mr. Loscheider provided insights into how Germany is handling one design challenge in
industry - lightweighting. Given that the majority of production costs are driven by raw material costs,
industry is particularly attuned to resource efficiency. Industry feels that resource efficiency is a win for all
stakeholders; the economy benefits from higher competitiveness, the environment benefits from lower
emissions and there is beneficial social development from safeguarding and creating jobs.
7.1.2 Best Practices
• Successfully integrating life cycle thinking into the design process requires that all key stakeholders
throughout a product's life cycle are involved. In particular, getting those involved in end-of-
life/second life management (recyclers, dismantlers, etc.) engaged with designers provides
opportunities to design products with "next life" in mind. Tools like design handbooks that speak to
this engagement can help to standardize practices across organizations. (Carrie Pearson, 3M)
• When designing new products, companies should design for the end-of-life phase and just not assume
that others will do it for them. By thinking of recycling and reuse at the onset, it can lower the cost and
barrier to the recycling and reuse of their products. This design information could be shared with the
greater recycling/reuse community in order to further lower barriers to the recycling/reuse of the
products. (Werner Loscheider, German Federal Ministry for the Economic Affairs and Energy; Russ
Balzer, World Auto Steel & Michael Wilson, Automotive Recyclers)
• Easier access to data for LCAs has the potential to lower the cost and time requirements to conduct a
useful LCA. Partnerships and communications across companies and sectors can provide an avenue
for this improved access and quality of data. (Susan Sawyer-Beaulieu, University of Windsor)
• LCA is not an end point; it is only a tool that can be used to help make better decisions. It should be
integrated into larger business practices to ensure that companies consider issues such as resource
efficiency. (Carrie Pearson, 3M)
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7.1.3 Challenges
Communication
• Communication between companies can be difficult because of a perceived loss of intellectual
property or competitive data.
• Existing regulations and policies (e.g., anti-trust laws) can make cooperation and communication
between corporations difficult.
Costs
• LCAs are expensive, time consuming and require a great deal of expertise.
• Incorporating the outcomes of an LCA into existing designs (e.g., material substitution) can be difficult
and expensive due to the need to prove new solutions can provide the desired performance.
• There are many country-specific rules and regulations that make collecting and dispersing life cycle
data very difficult, such as anti-trust or corporate collusion laws.
Data Quality and Availability
• At times, there is a lack of cost and performance data available to successfully execute an LCA.
Often these data are protected by individual companies as proprietary and therefore not shared with
competitors or the general public.
• The necessary data and information is often compartmentalized within an organization. Some
companies and industries are so large that it is difficult to get to the right person.
• Obtaining the necessary experts and expertise to execute an extensive LCA can be very difficult,
especially for companies who have limited resources and cannot employ in-house LCA experts.
Other
• Third-party actors, such as insurance companies, can be drivers or barriers to the adoption of life
cycle approaches as they have large financial interests in the potential impacts and uses of products.
• There is a need to promote standardized education and nomenclature across academic programs in
order to ensure that students are being trained to an appropriate level on life cycle concepts.
• Organizations are often making decisions based on the way the world is today and not how it will be
in the future. Things are changing so quickly that decisions based on how things are may be the
wrong decisions when they are implemented in even the near future.
7.1.4 Suggested Changes, Improvements or Actions
• Corporations and SMEs involved in life cycle and resource efficiency work should reach out and
participate in the larger LCA and resource efficiency communities. This participation will help drive
common and interoperable nomenclatures and expose individuals to best practices and lessons
learned from other companies. One example of such an organization is the American Center for Life
Cycle Assessment (www.lcacenter.org).
• For those interested in incorporating a life cycle approach into their product design process but are
concerned about the time and resources required to conduct a full LCA, investigate if qualitative
processes, such as LCM, can be embedded early in the design process. This could lower barriers to
life cycle thinking by making the process easier for companies.
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7.2 HOW CAN WE IMPROVE HOW WE USE LIFE CYCLE INFORMATION AND LIFE
CYCLE THINKING TO SET GOALS AND BETTER INFORM RESOURCE EFFICIENCY
DECISIONS?
(Note: Two breakout sessions covered this question.)
7.2.1 Conversation Starters
Dr. Jim Fava, Co-chair (with Mark Barthel) of the Hotspot Project (prerecorded video introduction).
Dr. Fava discussed the work that he is involved in with the United Nations Environmental Programme
(UNEP) and the Society of Environmental Toxicology and Chemistry to develop a hotspots analysis
methodology framework which can be applied at the product category, sector, city and national levels.
Hotspots analysis is used to identify high priority impacts (e.g., water, energy waste, etc.) and life cycle
stages (e.g., raw materials acquisition, manufacturing, transportation, use and end-of-life) to inform
decisions. Hotspots analysis is often used to identify actors who are most appropriate to work towards
taking actions to reduce the negative impacts identified by the hotspots analysis. It is also used as a pre-
cursor to developing more detailed or granular sustainability information. Additional information about the
UNEP's Hotspots Project can be found in the report at the following website: http://www.life
cycleinitiative.org/wp-content/uploads/2014/12/UNEP-Hotspots-Mapping-Project-Final-Report-Phase-
l.pdf
Mr. Ron Voglewede, Whirlpool. Mr. Volgewede discussed the ways in which Whirlpool has used
hotspots analysis in its processes and provided recommendations for how this tool can be used
successfully. Whirlpool has used hotspots analysis to look at a variety of different factors to reduce waste
and increase viability of its products. Whirlpool has looked at the raw materials used to produce its
products, how it packages its products to reduce waste, emissions from the production and use of its
goods, and the social and economic impacts its products have. Hotspots analyses are designed to focus
on a specific issue, however, it is important to identify the right issue and have the scope clearly defined.
The hotspots analysis should be driven by the end goal or outcome of the analysis. Engaging
stakeholders, including small- and medium-sized enterprises (SMEs), and looking at other hotspots
analyses and LCAs are all beneficial to the process because they help to identify the desired outcome
and inform the work that is being done while reducing redundancies and improving the process. Hotspots
analysis not only informs a single desired outcome, but also aids in broad-level impacts beyond a single
project. Development of standardized and harmonized views by types of products by how they are
produced, their uses (especially energy usage) and where those use cases occur will inform better focus
on those relevant impacts that promote better design.
7.2.2 Best Practices
• Stakeholders play a critical role in hotspots analysis. They help to shape the goal and scope of the
analysis, assist in data gathering, validate the hotspots that are identified and act on the results. As a
result, to be successful, those conducting the hotspots analysis must identify and engage
stakeholders throughout the process. Stakeholders can be part of the supply chain, communities that
make up the supply chain, consumers, policy makers and/or financial institutions. Engaging
stakeholders throughout the process is beneficial in shaping analysis because they will contribute
different perspectives and ideas, as well as highlight areas for education. Depending on the scope of
the assessment, stakeholder engagement can be at a global scale or at a small scale. In addition,
these stakeholders may change for each assessment, because each assessment will have a different
scope. When an analysis is complete, the results should be shared with a company's competitors to
help drive the larger goal of unified change.
• Different types of LCAs may be more appropriate depending on an organization's goals and
resources. Before beginning any type of analysis, the parameters for the analysis need to be explored
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and articulated - this includes the priorities of the analysis and the amount of time and resources
available. These factors will help determine the best kind of analysis to be conducted. Although there
is no set criteria for when to use one type of analysis versus another, there are certain guidelines to
aid in the process. Companies should use a hotspots analysis when a specific or narrow result is
sought that usually pertains to a single part of a life cycle. A coldspots analysis (points in the process
that are less hot) can be used to identify areas that can be leveraged to work toward solutions. Both
hotspots and coldspots analyses are recommended when there are limited funds and a short amount
of time to conduct the analysis. A full LCA is recommended when there is a broad goal and most of a
product life cycle is being analyzed. This option is only viable when there is sufficient time and
funding for the process.
• When setting parameters for a new assessment, looking at previous assessments provides
information about what has already been done. Looking at the best examples and those which have
been most groundbreaking can lead to more innovative results as opposed to looking at the average
of previous assessments. The average can show what has been done, but the best will show what is
really driving the industry forward.
• The thinking and decisions that inform an assessment are very important because if those are not
clearly stated, a successful outcome is not guaranteed. This ties into the setting of expectations for an
analysis and understanding what the desired goal or outcome is. A lot of work goes into the supply
chain, but it might not be part of the LCA. Looking at the tools that contribute to an LCA will help
construct an effective LCA.
• The production phase of a product is very important because it helps to define other phases of the
process and close gaps. For example, if the desired outcome is to reduce waste, a hotspots analysis
can be conducted on the production of a product. Understanding and looking at all the materials
needed to produce a single product will inform how a product can be changed in its design,
production or packaging to reduce and eliminate waste.
• The establishment of EPA's LCA Center will help to regulate and standardize the assessment
process. The Center will provide a central location where members of the LCA community can
collaborate and continually improve LCA processes.
7.2.3 Challenges
• The level of assessment is sometimes difficult to determine. It is often bounded by what is feasible
and not by what is possible. Because there are so many factors that are considered, these
constraints often limit the work that is done. Instead, organizations should stay focused on the
outcome as the most important consideration for establishing assessment boundaries. There is a
mentality of incremental change instead of holistic thinking; there is a need to redefine the system
and the thinking behind it.
• There is not a central location to find and share life cycle information, including best practices,
process and case studies. More data and methodologies need to be made available to users. All of
these things need to be made compatible and interoperable. There needs to be harmonization of
LCAs and LCIs.
• The global nature of the supply chain presents a challenge for conducting adequate hotspots analysis
and LCAs. Even if companies could track where products are made, sold and disposed, there are a
number of inconsistencies that arise across geographic boundaries that inhibit large-scale analysis.
These range from simple definitional differences to differences in underlying methodologies and
different regulations and reporting requirements.
• An LCA presumes that there is an external stasis; the assessment can be done in a vacuum without
any factors changing throughout the process. In reality, changes are occurring that can affect the
assessment. In order to have an effective LCA, there needs to be a way to determine the changes
that happen during the LCA and how to incorporate those into the assessment and its outcome.
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• LCAs are necessary, but they need to be conducted and presented in such a way that the
stakeholder can understand and recognize the importance of the assessment. There is an education
gap in the way that LCAs are discussed among the industry and those outside of it.
• In order to determine when an LCA or hotspots analysis is necessary, set boundaries so that the
assessment is focused, but will produce results. If there is not a narrow focus for the assessment,
then the outcome is not clearly defined and a solution may not be reached at the end of the
assessment process. Sometimes, making assumptions is necessary to move the assessment
forward. There will be gaps in the information available; instead of getting stuck trying to fill in the
gaps, an educated assumption can be made to continue with the assessment.
• There is a need to change the thinking and understanding of assessments as a cost and resource
burden, when in fact, they are a benefit or value.
7.2.4 Suggested Changes, Improvements or Actions
• LCA experts should work and communicate with stakeholders to improve education. Experts need to
listen to stakeholders and determine what changes are possible and what has the most value.
• The EPA's LCA Center will be a tool to help standardize the LCA process. It will help streamline the
processes of conducting LCAs and can be a repository for best practices and case studies so that
anyone can have access to LCA data and information.
• Find a way to automate the data collected and categorize it regionally or by industry. Create a
database or forums for collaboration within the industry and share information with stakeholders so
they can contribute as well. This is another area that the EPA's LCA Center could help create or
regulate so that information is standardized and accessible.
• Industries must be more transparent with material flow information to expand knowledge about
impacts and to generate new ideas for resource efficiency. By looking at an issue on a broader scale,
it can help inform how an industry functions overall and help improve the processes it uses.
• Create mechanisms to share the cost burden of conducting LCAs across industry, government and
other institutions. This will help reduce the overall cost burden and help communicate successes and
promote learning from efforts that are not as successful.
• Use LCAs in conjunction with social science as well as economic and other environmental
information. Social scientists can help inform LCAs in a different, but significant way that is different
from the contribution of analytic scientists.
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7.3 HOW CAN WE IMPROVE HOW WE USE LIFE CYCLE INFORMATION AND LIFE
CYCLE THINKING TO SET GOALS AND BETTER INFORM RESOURCE EFFICIENCY
DECISIONS?
(Note: Two breakout sessions covered this question.)
7.3.1 Conversation Starters
Dr. William Flanagan, General Electric (GE). Dr. Flanagan shared GE's structure and process for
using key decision support tools that incorporate life cycle information. He described how the tools
facilitate more informed decision-making. Initially, Dr. Flanagan and his team quickly recognized that
measuring the carbon footprint of GE's supply chain would distract resources away from the company's
real opportunity to contribute to sustainability, which is its ability to develop game changing products and
technologies and deploy them on a global scale. So, while GE developed internal capability to perform
detailed LCAs following the International Organization for Standardization (ISO) 14044 guidelines, it also
developed a screening LCA tool and a qualitative environmental LCM tool, which is designed to rapidly
identify issues which would not necessarily be identified in a typical LCA.
The content of the LCM tool was developed based on external stakeholder mapping with the intent of
educating and guiding tool users about life cycle perspectives that are important to a broad range of
stakeholders, and the importance of particular stages of a product's life cycle. The tool also includes
customizable business context filters that allow content (topic areas) to be weighted differently depending
on the product category or industry.
The GE LCA screening tool does not require substantial data collection. GE has populated the tool with
average impact scores for a broad range of materials, such as plastics, which prevents the over-collection
of detailed materials information that may not be necessary at the screening level. This allows the
company to quickly analyze, for example, whether the materials impacts are significant relative to use-
phase impacts, given how a product is used. GE has also developed custom tools for specific product
applications and strategic customers.
GE has been "dashboarding" to identify areas, products or customers that might benefit most from
conducting an LCA. This is important, since GE cannot conduct LCAs for every single product. This
process allows the company to be strategic and selective in how it conducts LCAs, and how they add
market value, differentiation and so forth. In general, GE tries to customize every strategy in order to
maximize value for its customers, since GE would like to develop solutions that would "change the game"
rather than make incremental improvements to existing products. These tools also may be used to
perform priority assessment of supply chains. It is also important to look at material flows and translate
those variables into life cycle costs. The idea is to lower barriers for entry for companies to begin thinking
about LCAs, because making LCAs easier to understand, conceptualize and use is critically important if
their use is to be widely employed.
7.3.2 Best Practices
Breakout participants offered some of the best practices that their companies are using, including:
• At Toyota, business continuity is one of its drivers, as well as energy use and the move towards
renewables. So, getting its suppliers to follow suit is one of the reasons Toyota identified CO2 as one
of its focus areas.
• The World Resources Institute (WRI) is working with companies to create science-based targets that
include the full value chain of their company, using life cycle thinking. WRI is encouraging companies
to track their performance and really think about how they will procure data that will objectively track
their performance. (See www.sciencebasedtargets.org for more information.)
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• The World Wildlife Fund (WWF) is working to include biodiversity, land use changes, greenhouse gas
(GHG) emissions and other indicators that are not typically included in traditional LCAs. WWF
believes that including an expanded set of indicators provides a more accurate analysis of the
impacts to the environment.
• GE finds that when first starting an LCA, it is good to begin with the basics at a screening level. This
helps identify where to focus, for example whether a product is a materials-intensive product or a use-
phase intensive product.
• Covanta finds sensitivity analysis and estimation to be important tools to focus on uncertainties and
drivers.
- For example, the EPA Office of Research & Development (ORD) and Office of Resource
Conservation and Recovery (ORCR) organized a team of industry professionals to examine
landfill gas emission efficiency. It was very successful, and involved examining an array of
defaults related to gas collection efficiencies at landfills. These tools are better refined
through collaboration.
• EPA works with the General Services Administration (GSA) to conduct spend and hotspots analysis
and see where change is needed in highly impactful and large purchasing categories. How can LCAs
help drive market change and economics?
- Conducting hybridized LCAs with a detailed foreground and a complete background can help
affect this change.
7.3.3 Challenges
Obtaining Data to Conduct Complete LCA
• It is very difficult to get data from suppliers to conduct a comprehensive LCA of supply chains. This is
due to proprietary concerns from suppliers. There is little transparency in the supply chain, so
increasing visibility on what resources are involved and who supplies those resources is important.
Having full visibility of the supply chain would allow companies to identify where they need to improve
in becoming more resource efficient. Better data collection and decision-making tools would help with
this challenge. Further, integrating resource efficiencies and LCAs into supplier contracts would help
too.
Identifying Sustainability "Drivers"
• It is difficult to balance customer expectations and the profit-making responsibilities of a company with
the need to drive sustainability forward. How is this dynamic optimized and how do we help raise
consumer expectations and pressure on companies to become more sustainable?
- Policy and regulations - including getting policy-makers comfortable with LCAs - along with
education will help create these drivers.
Identifying internal drivers to motivate competitive efficiencies is critical.
• Toyota is beginning to address the challenge of getting to zero CO2 emissions in their LCAs;
however, the challenge is getting data from their supply chain partners.
Communication and Coordination
• It is often difficult to translate LCAs. This makes it challenging to properly communicate the social,
environmental or economic benefits of a product or process for specific audiences. To that end,
having a single, federally managed repository or data center (e.g., Toxic Release Inventory) where
various LCAs could be compared would help organizations from having to reinvent the wheel every
time they plan to conduct an LCA. Having a set of guidelines or best practices to build LCAs is also
an important consideration, as currently, companies do not have the data or the resources needed to
conduct complete LCAs. If these guidelines or set of best practices existed, then there would be less
effort on how to actually conduct an LCA. Currently, there is not a lot of industry support; however,
incorporating LCAs into regulations will help direct resources to this need. EPA has traditionally been
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a leader in providing guidelines, but it is important to support the market as well. Presently, market
mechanisms to create incentives to perform LCAs do not exist.
• At the other end of the spectrum it was noted that currently, there is little communication between
OEMs and recyclers. Improved coordination with recyclers at the end of the product life cycle could
enhance remanufacturing and refurbishment initiatives. These concerns suggest that greater
collaboration across academia, industry, non-governmental organizations and the government is
needed.
7.3.4 Suggested Changes, Improvements or Actions
Government/Policy Action
• While some might suggest that LCA should become a required element in government-funded
projects or be incorporated into some regulatory certifications, this may be a difficult and unpopular
approach from an industry perspective given the cost and difficulty of conducting such assessments.
• A government-funded database that houses LCA information would be helpful, including a publicly
accessible component.
Industry
• Consider developing guidance and "how-to" publications on LCAs.
Research & Collaboration Opportunities
• Explore how to develop new, remanufactured and recycled materials that exceed current physical
properties and uses.
• Industry leaders should collaborate at pre-competitive stages to conduct major materials LCAs. This
would help companies better understand the most resource intensive production stages, which in turn
could help improve resource efficiencies across business sectors.
• There needs to be increased research on integrated models and future implications of major industry
changes due to climate change and supply chain disruptions. This highlights the importance of
improved cooperation and collaboration with developing countries.
7.4 HOW TO DO A BETTER JOB IDENTIFYING AND COMMUNICATING SOCIAL
IMPACTS ACROSS THE SUPPLY CHAIN AND PREVENTING OR ADDRESSING
NEGATIVE IMPACTS?
7.4.1 Conversation Starters
Mr. Jeff Morgan, MARS Corporation. Mr. Morgan provided an overview of MARS' efforts to identify
and communicate social impacts across the supply chain. MARS' goal is to have sustainable supply
chains - economic, social and environmental sustainability. A major challenge is in the agricultural supply
chains and those within underdeveloped countries. Some specific challenges encountered include: 1)
high levels of poverty among small holder farmers due to low yields; 2) poor farm practices; 3) exclusion
of women from income; and 4) poor education opportunities.
Cocoa, as a crop, is highly labor intensive, however, farmers may not be well organized. MARS worked to
take a holistic approach to address productivity and social issues. Mr. Morgan highlighted key practices
such as a focus on women's empowerment, availability and access to better planting material, improving
training and working to improve labor practices (i.e., reducing hazardous conditions). He stressed the
need to consider the cultural aspects of a country where the supply chain resides when determining
actions for improvement. For example, in some cultures, the family, including the children, traditionally
farms the land.
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Mr. Morgan's major lessons were: 1) knowledge and understanding of the culture and social environment
of the supply chain is critical before taking action; 2) media plays an important role - both positive and
negative; and 3) positively addressing social impacts takes time (25-30 years).
While his comments were focused on cocoa, he felt these practices could be applied more broadly to
agricultural processes and artisanal production of goods and materials.
Mr. Kevin Funk, U.S. General Services Administration (GSA). Mr. Funk provided an overview and
demonstration of GSA's tool created to help organizations incorporate social impacts into purchasing
requirements. The tool came online in February 2016 and will be updated as new best practices and tools
are identified. It helps users identify and address their high-risk areas. The tool can be found at:
https://sftool.gov/plan/545/social-sustainability.
7.4.2 Best Practices
• Knowing your supply chain members is one of the most important factors in determining ability to
address social impacts. This includes knowledge of who they are, how they work, and what their
cultural and social practices are so that you can develop the most beneficial engagement.
• Supply chain knowledge is a critical step for procurement, so that cultural and social norms can be
addressed and mitigated leading to a successful outcome.
• Accurately identify issues in the supply chain.
• Strong partnerships between companies, industry collaboratives and the supply chain are imperative
for success.
• Set realistic targets for demonstrating and communicating progress.
• Consider the supply chain process from cradle to grave for development of a product or service.
• Collaboration and partnerships (public-private) in addressing social impacts are imperative to
success. This includes collaboration between industry and individual companies.
7.4.3 Challenges
Communication/Coordination/Messaging
• Social impacts can be sensationalized, which can lead to positive or negative results. The media
often reports on the negative side of an issue and the positive side is overlooked. The pro is that
issues are highlighted and brought to the forefront; however, many times the information is incorrect.
For example, in the cocoa industry, child labor was identified as an issue, when after investigation, it
was determined that it was actually a cultural norm for children to farm the land with their family. This
led to the identification of other issues such as illiteracy, poor farming practices and hazardous
conditions, which are being addressed.
• It is often non-governmental organizations or journalists that bring issues to the forefront, and
companies end up in response mode versus dealing with the actual issues.
Timing
• Addressing social impacts is a long-term challenge; it cannot be quickly or easily resolved, and often
there are many obstacles and side issues. It is difficult to maintain a focus on the challenge being
addressed as there are many side issues that arise and/or are part of the resolution. It is reasonable
to expect that resolution of social challenges will take 20-25 years; it is not a short-term (end of year
or 10-year goal). The challenge here is that many corporations/industries want a quick fix and this
hinders a comprehensive approach to resolving the issue. For example, in the cocoa industry, poor
farm practices resulting in low yields need to be addressed. Understanding the cultural and social
norms of the region, a company was able to identify a long-term solution which included empowering
women which will result in improved child literacy, better farm practices and higher yields for the
farmer. This will take 20-30 years, but will result in more income for the farmer.
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Knowledge of the Supply Chain
• Most extreme social issues are coming from artisanal and informal producers. Many times these
issues are culturally based. A typical approach larger companies use is boycotting; however, this
does not work in this type of supply chain when hundreds of families are relying on the business for
sustainability. A more long-term, comprehensive approach can be taken by companies such as:
education, standards and compliance mechanisms, engagement (on the ground), subsidies or
financial incentives, and market incentives.
• When looking at social issues for the supply chain, it is important to consider downstream (end-of-life
products), which present their own unique set of issues, and not just upstream considerations.
• Buyers are often removed from the original source, which makes it hard to manage the supply chain.
For the auto industry, buyers care about prices and are removed from the original source. When
purchasing a car, the focus is not on the materials, but the final product. However, in the agriculture
industry, there is more visibility on the supply chain as the product produced is consumed and there is
more of a focus and visibility on the original source supplier issues, such as labor practices.
7.4.4 Suggested Changes, Improvements or Actions
Communication/Coordination/Messaging
• When addressing social impacts, every attempt should be made to make the focus on positive
actions and situations.
• Look for innovation potential in the change; there may be a way to bypass the 25-year-old solution by
looking for and taking advantage of new innovation potential.
• Often it is not the company that supplies the ingredients that speaks to social issues, but the
company responsible for the end product. The company(ies) that produce the ingredients that make
up the final product should be incorporated into the social impact messaging. It is noted that this may
depend upon where each company is in the supply chain.
• Companies should look for ways to collaborate and address social impact issues collectively - with
trust and transparency. There is more power in being a unified force of good.
• When developing messages around social issues, companies should carefully consider the intended
audience - audiences in developed countries can be very different than those in developing
countries. These messages should explain the issue in the context of the mission of the organization
and be as transparent as possible.
Knowledge of the Supply Chain
• When working with artisanal communities, approaches such as education, establishment of standards
and compliance metrics, engagement, and financial incentives are typically the most effective
approaches.
Timing
• Be realistic, and when possible, set intermediary goals to demonstrate successes and progress. In
developing countries, it can take a generation to see the results of social changes and improvements.
Difficulty in Measuring Social Impacts
• Use data to inform and educate the public to assist them in understanding the issues, impacts, and
ways to address social impacts. For example, labor wages and working hours are quantifiable data
that can be used to convey how social impacts are being addressed. Unfortunately, there is not an
equation to quantify social impacts broadly, like there is for environmental impacts. There is no way to
measure if a company is successful in women's empowerment. Increasing of a workers income may
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not help. Working with the Department of Labor could assist in identifying hazardous working
conditions for children.
7.5 HOW CAN WE IMPROVE COMMUNICATION AND SHARE INFORMATION ABOUT
RESOURCE EFFICIENCY ACROSS THE SUPPLY CHAIN?
7.5.1 Conversation Starters
Mrs. Sue Rokosz, Ford Motor Company. Mrs. Rokosz provided an overview of Ford's Partnership for
a Cleaner Environment (PACE) Program through which leading environmental practices are shared
between Ford and its suppliers. As participants in the program, suppliers select leading practices
applicable to their operations, create a roadmap for improved efficiencies, collect relevant baseline data,
implement the leading practices and report environmental metrics to Ford. The PACE Program ensures
two-way communication between Ford and its suppliers and that they are able to share information,
leading practices and lessons learned.
Mr. Jason Pearson, Sustainable Purchasing Leadership Council (SPLC). Mr. Pearson described
the work of SPLC, a group of over 150 leadership organizations across the public, private and civil society
sectors that collaborate to develop a shared program for guiding, benchmarking and recognizing
leadership in sustainable purchasing. SPLC equips procurement professionals with resources to make
strategic institutional purchasing decisions that send a collectively harmonized message down the supply
chain regarding the value of sustainable products. One such resource is SPLC's Guidance for Leadership
in Sustainable Purchasing, released in 2015. This document provides recommendations and best
practices for creating a strategic sustainable purchasing program using the concept of a strategy cycle.
The document also provides guidance on sustainable purchasing for eight priority purchasing categories.
Overall, the SPLC provides a forum through which purchasers and suppliers can work together to share
best practices, encourage alignment and promote market transformation.
7.5.2 Best Practices
• Corporate programs that share leading environmental practices with suppliers allow for information
sharing and the promotion of a sustainability culture throughout the supply chain. (Sue Rokosz, Ford)
• Because the sustainability requirements in requests for proposal (RFPs) can be confusing,
companies such as Lockheed Martin have begun to offer mentorship programs to help suppliers
understand and comply with the standards being imposed on them, including how to report the
required metrics. (Jason Pearson, SPLC)
• The Suppliers Partnership for the Environment and the Automotive Industry Action Group, two forums
for interaction between automobile OEMs and their suppliers, provide an opportunity for significant
pre-competitive collaboration, including working on initiatives to decrease "questionnaire fatigue" for
suppliers by helping them understand and respond to the sustainability surveys they must frequently
complete for their customers. (Sue Rokosz, Ford)
- As part of its 2016 activities, SPLC will develop and implement a benchmarking survey that
will enable participants to assess the maturity of their sustainable purchasing activities
relative to their peers and will offer a baseline for SPLC's future development of a leadership
rating for sustainable purchasing. (Jason Pearson, SPLC)
• Internal sustainability champions help to both get sustainability programs started as well as to keep
them going. These figures play a critical role in obtaining executive-level approval and working to
build key performance indicators (KPIs) and other sustainability measures into corporate strategies.
These metrics are the key to success for sustainability programs because they serve as a tool to
communicate progress and provide a framework to guide inputs from suppliers. (John Bradburn, GM)
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• Cross-sector and cross-supply chain "brain trusts" or non-traditional/uncommon collaborations
(including public-private partnerships and partnerships with universities) allow experts to effectively
take on challenges such as developing secondary markets for used materials by addressing technical
challenges related to using materials that are recycled or remanufactured.
7.5.3 Challenges
Data/Making the Business Case
• There is a general a lack of LCA data as well as a lack of consistency along supply chains in the LCA
data that does exist. For this reason, LCA data is often not useful for procurement departments
attempting to incorporate LCA data into the equation for purchasing decisions.
• There is not yet a good business case for sustainable purchasing, particularly because organizations
do not have good measurements on their returns from engaging in sustainable purchasing.
- SPLC sees this issue as an area for research; the main topic of its May 2016 Summit is
making the business case for sustainable purchasing.
Communication/Coordination
• More communication is needed throughout the supply chain about how products can be repurposed
at the end-of-life stage. Because the return on investment for manufacturers is usually higher at the
upper level of the supply chain, there is a lack of investment in developing the secondary market and
end-of-life opportunities that may exist for products. This is particularly troublesome because local
governments are often responsible for end-of-life and post-consumer/post-commercial materials
management, which means that taxpayer dollars are paying for these activities. In order to capitalize
on the jobs generation and economic growth potential of the secondary market, more investment and
communication throughout the supply chain must be dedicated to local recycling and remanufacturing
programs.
- Because the focus in the United States has historically been on landfill diversion, the
secondary market for materials has lagged behind. Instead of recovering the highest
economic value of material at the lowest environmental cost through recycling or
remanufacturing, the opposite is true when manufacturers are focused only on reducing their
disposal costs.
- One specific challenge is that many communities do not see the value add of recycling,
especially with the downfall in the commodities markets for plastics and glass.
• Suppliers receive multiple survey requests from multiple sources annually and are not able to
adequately respond to customer demands both because of survey/questionnaire fatigue and a lack of
understanding of the questions contained in these surveys/questionnaires.
• Supply chains are not linear; they are complex and sensitive networks or "webs." Companies need to
figure out how to reach past their Tier I suppliers to ensure they are also engaging with their lower tier
suppliers.
7.5.4 Suggested Changes, Improvements or Actions
Communication and Pre-competitive Coordination
• Specific to the automotive sector, the Automotive Recyclers Association (ARA) would like to improve
its relationship with the OEMs in order to increase coordination between the two communities,
specifically with regard to the issue of parts numbers.
• More communication and coordination is needed between local government, municipal networks
(e.g., the U.S. Conference of Mayors) and industry groups to realize the potential of local secondary
markets.
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- An example of a public-private forum that is tackling this challenge is the Curbside Value
Partnership, through which industry members are working with municipalities to develop local
opportunities in the secondary market.
• Conversations about life cycle thinking and sustainability between suppliers and purchasers must
occur at the right level and within the right department in a company in order to be effective. The
"right" individuals may be procurement officers, engineers or top-level decision makers depending on
the organization.
- The strategic value of procurement needs to be demonstrated in order to empower
procurement professionals. This is already the case in some organizations (where
procurement departments and sustainability departments work closely together) but not in
others. In addition, future meetings such as the G7 workshop should include procurement
professionals.
• Developing standard survey/questionnaire questions or survey/questionnaire templates will help to
alleviate fatigue and confusion for suppliers.
Brain Trust/Encouraging the Next Generation
• Secondary markets benefit immensely from "brain trusts" that can develop innovative solutions to
technical challenges and explain those solutions to the top of the supply chain. For example, there is
now a robust secondary market for end-of-life rubber, which can be converted into micro-scale
powders and sold back to the tire industry.
• Related to the "brain trust" concept, more partnerships are needed with higher education institutions
in order to generate LCA research and, as a broader goal, ensure that life cycle disciplines are
promoted among the next generation of engineers, chemists and other practitioners.
- The American Center for Life Cycle Assessment is an important asset that promotes the
responsible use of LCA and brings together universities and federal agencies that are
currently engaged in this type of work.
- The discipline of Industrial Ecology should be considered as a source of potential "brain trust"
members.
Design
• As products are being designed or redesigned for sustainability in the manufacturing sector, the
secondary/recycling markets downstream must be taken into consideration if a CE is to be achieved;
product design ultimately impacts the tax bill at the local level when municipalities are responsible for
managing end-of-life programs.
Incentives
• The right incentives (both market and non-market) for suppliers must be put into place if they are to
embrace a culture of sustainability. Such incentives include metrics, internal champions, positive peer
pressure, consistent signals from purchasers, making the business case and individual-specific
performance goals for managers.
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8 ATTACHMENT 3 - LIST OF TOOLS AND RESOURCES
• Stuffstr.com
• Global Network of Interoperable LCA Databases
- http://www.scpclearinqhouse.org/workinq-qroup-2.html
- POC: Elisa Tonda
Materials Marketplace
- http://materialsmarketplace.org/
Investing in Manufacturing Communities Partnerships
- https://www.eda.gov/challenges/imcp/
MFI and LIGHTen-UP
- POC: Joe Cresko
U.S. Zero Waste Business Council
- https://www.uszwbc.org/
- Scorecard to certify zero waste facilities
Tuning in to zero waste - 5th Annual National Zero Waste Business Conference
- Austin, TX
- June 1-4, 2016
- Sheraton Austin Hotel at the Capitol
- Register: www.uszwbc.org
Waste Hub
www.waste-hub.com
- Marketplace & Tech Development
CAScan
- Smartphone chemical inventory app and chemical identifier
- Brought to you by Waste Hub
ERA-EHS Software
- www.ERA-EHS.com
Canadian Auto Recyclers Environmental Code
- www.carec.ca
DOD Acquisition Tool for Automated LCA Impact calculations and costing
- POC: Paul Yaroschak
U.S. EPA Managing & Transforming Waste Streams
- https://www.epa.gov/managing-and-transforming-waste-streams-tool-communities
- POC: Karen Irwin
GSA Social Impact Tool
- https://sftool.gov/plan/545/social-sustainability
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9 ATTACHMENT 4 - IMPROVING RESOURCE EFFICIENCY IN
OPERATIONS, USE AND AT END-OF-LIFE BREAKOUT
DISCUSSION NOTES
(Note: Items captured reflect individual (or organization) input during discussions and should not be
viewed as consensus statements.)
9.1 HOW DO WE INCORPORATE AND IMPROVE EFFICIENCY IN OTHER AREAS SUCH
AS WATER, ENERGY, LAND, ETC.?
9.1.1 Conversation Starters
Mr. Bruce Uhlman, BASF Mr. Uhlman provided an overview of BASF's sustainability programs and
resource efficiency initiatives, including its programs with suppliers to meet resource efficiency targets in
the areas of energy, water (through its efforts to develop a comprehensive water management system),
safety, and health and security. The goal of these programs is to engage with suppliers around the
various issues and challenges surrounding sustainability. As a global leader in sustainability management
and measurement, BASF has developed a comprehensive, science-based Applied Sustainability Tool
Box for integrating life cycle thinking and LCA into its strategic decision-making processes and customer
engagements. Holistic assessments consider all three dimensions of sustainability: economic,
environmental and societal. Most recently, BASF developed a process to systematically and consistently
evaluate the unique sustainability contributions of its entire portfolio. Through Sustainable Solution
Steering®, BASF was able to analyze over 60,000 products and their value chains considering industry-
and region-specific sustainability requirements. This detailed analysis and transparent classification and
communication allowed BASF to both improve individual solutions and steer its entire portfolio. The
results enabled further integration of sustainability into strategic, research and development (R&D) and
customer support processes (e.g., educating BASF's sales force on how to communicate product
sustainability information). The methodology and approach used by BASF for this effort have been
licensed by thinkstep, and are thus available to all companies.
9.1.2 Best Practices
• The organizational placement of a sustainability department is important to a company's ability to
incorporate sustainability into its corporate strategy. For example, BASF has found that by moving its
sustainability team into the company's strategy group, the sustainability team is now integrated into
the decision-making process, which has created alignment across the company. BMW Group has
also experienced success in having a sustainability function in its strategy department as well as
placing sustainability teams in each division to ensure divisions understand the overall sustainability
strategy. (Bruce Uhlman, BASF and Ursula Mathar, BMW Group)
• For smaller companies and organizations that do not have the resources that large businesses have
to dedicate to sustainability programs, making the shift to incorporate the concept of life cycle thinking
into an organization's culture and strategy across its operations can be much less expensive than
engaging in more rigorous and focused LCAs, which requires significant expertise and resources.
(Bruce Uhlman, BASF)
• Peer-to-peer sharing is occurring through the American Center for LCA, whose members are
practitioners working in industry. Among the issues discussed by members are best practices for
measuring land use, water use and other areas for resource efficiency.
• Sharing best practices and success stories of suppliers who have translated sustainability efforts to
increased sales can help convince other suppliers of the value of sustainability programs.
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• Setting specific targets related to resource efficiency in areas such as water, energy and land is
important. In addition, it is critical to take into consideration the physical location of production sites
when setting these targets (e.g., water conservation targets should be more stringent in water
stressed locations than in non-water stressed locations). (Ursula Mathar, BMW Group)
• Although larger corporations may not necessarily include specific life cycle targets in their
agreements with suppliers, companies have found success by putting sustainability and life cycle
thinking onto the agenda for supplier meetings with top-level personnel. For example, by addressing
sustainability at high-level meetings, BMW Group has shown that it is committed to transparency and
that it expects innovation in sustainability from its suppliers. (Ursula Mathar, BMW Group)
• In addition, other companies have found success through incentives such as awards. GE incentivizes
and rewards its sourcing team for conducting sustainability projects with suppliers through its Eco
Awards Program. (Bill Flanagan, GE)
9.1.3 Challenges
Company Culture
• Even if an organization has a "sustainability mandate," it is often challenging to change the business
culture, particularly within an organization's sales force. It is resource and time intensive to reeducate
sales personnel on how to communicate product sustainability information to customers, and
particularly on how to explain to customers that sustainable products are in line with customers'
market goals. In addition, it is difficult to change the culture in R&D departments.
Data/Making the Business Case
• It is easy for customers to misinterpret LCA data. In some cases, it makes sense to share LCA data
with a customer if it is translated in a way that ensures the customer understands the results.
However, in other cases it is difficult to share this data.
• One issue related to making the business case for resource efficiency programs is that true costs are
not necessarily reflected in a company's utility bill. Several organizations (e.g., Trucost) have tools to
assist in monetizing natural capital; however, more work is needed on normalizing utility costs in
order to conduct more accurate calculations.
Regulation
• Although intended to create positive effects, regulation can sometimes inhibit sustainability efforts in
the private sector (e.g., used batteries being considered hazardous waste). In addition, the regulatory
process specific to the United States does not encourage sharing of detailed product information by
companies because of the likelihood of lawsuits and large damages.
9.1.4 Suggested Changes, Improvements or Actions
Data/Making the Business Case
• Building high-level dialogues with both customers and suppliers based on effectively explained LCA
data is needed to help customers and suppliers understand the business case for life cycle thinking
and sustainability initiatives. In addition, LCA data must be translated carefully for different audiences
(e.g., design personnel, production personnel) because the value of an LCA may vary by audience.
• Because there can be institutional resistance to implementing resource efficiency measures related to
water, energy, land and other factors, more data to figure out the true cost of such efforts is needed in
order to make the business case and overcome institutional barriers.
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Coordination/Collaboration
• In the building sector, more communication of best practices is needed in order to share information
such as model contract language. In particular, there may be opportunities for cross-country
collaboration in this area.
• Although pre-competitive consortia exist that aim to address the need for consistent, standardized
sustainability criteria across product categories or specific products (e.g., labeling programs, the
Green Supplier Network, etc.), more participation from manufacturers is needed to ensure the
success of these types of efforts. In addition, such groups must keep up with the latest science in
order to ensure that labeling programs stay relevant.
- A related issue is that greater cooperation is needed at the federal level in order to reduce
confusion regarding overlapping labeling and standards programs in the market place. If
multiple programs are needed, it should be ensured that they are performing different
functions.
• The pilot of EPA Guidelines for Environmental Performance Standards and Ecolabels
is attempting to address this issue (www.resolv.org/site-guidelines').
- Participants noted that it is important to begin moving from single-attribute to multi-attribute
labels and standards.
• Organizations should work together to establish a common terminology lexicon for talking about life
cycle thinking. There is often a lack of consistency in the way that regulators, manufacturers,
suppliers, and consumers discuss the topic.
• More communication platforms such as the Carbon Disclosure Project (CDP) Supply Chain Program
are needed. Through the CDP program, suppliers are asked to respond to a questionnaire which
allows companies to assess climate change risks and opportunities embedded in their supply chain.
Regulation
• More communication and collaboration is needed between regulators and industry to ensure that
regulation does not inhibit sustainability innovation. Regulation of the private sector should be made
in the context of life cycle thinking, and regulations should be consistent with life cycle approaches.
9.2 HOW CAN WE CREATE VALUE FROM WASTE MATERIALS?
9.2.1 Conversation Starters
Mr. John Bradburn, GM. Mr. Bradburn provided an overview of GM's sustainability efforts, primarily
focusing on GM's landfill-free manufacturing goal. GM has seen a total waste reduction of 40 percent. He
noted that zero waste is a good barometer for success, but the ultimate goal is to establish the programs
that drive zero waste. GM is looking at creative reuse of materials in addition to recycling. For example,
materials from old tires are being used in new air bags and shipping boxes are used as roof liners.
Everyone has the ability to come up with ideas for reuse. Manufacturers have to be willing to harness this
input and have a commitment to continual progress.
Mr. Kevin Butt, Toyota. Mr. Butt provided insights into how Toyota views the business case for
sustainability: it appeals to some consumers and reduces long-term risks. Toyota is a zero-landfill
company, but not every plant is zero waste. Toyota is looking into ways to make that waste stream a
revenue stream. Toyota has some ambitious goals, like zero CO2 from tailpipes by 2050, but Toyota only
can have so much impact on the environment. He noted that others need to get together around good
ideas to scale them up to have a real lasting impact. Mr. Butt presented a pilot project that used spent
hybrid batteries to create a power plant for a Yellowstone lodge that is off the grid. While no longer useful
in cars, these batteries can provide decades of additional use in such an environment.
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9.2.2 Best Practices
• Media recognition, through features on green-themed shows and specials on different programs, is a
way to share information about successful projects and programs to consumers and other
companies. This, in turn, leads to more conversation about the projects, both internally and externally,
which can lead to more innovation; a potentially virtuous cycle. (John Bradburn, GM and Kevin Butt,
Toyota)
• Zero waste is most effective when it is not viewed internally as an environmental challenge, but as a
strategy to increase profits (e.g., eliminating waste processes, identifying a reuse fora product, etc.).
Identifying a value for a given waste material can drive that value throughout the entire business
chain, reducing costs and increasing profits. This gets the project the attention it needs.
• Eco-labels and certifications are not only ways to help consumers better understand the benefits and
costs of a product, but they are also driving decisions at companies who are trying to meet their
requirements to receive these forms of formal and informal recognition. Because educated
consumers often care about their impacts, these eco-labels and certifications provide them with a
reason to purchase a certain product. These consumers often seek out products that have been
certified or have third party eco-labeling.
• Awards and other types of recognition - within companies or from outside organizations - are also
motivational factors in implementing resource efficiency activities.
9.2.3 Challenges
Communication
• Competition between firms leads to barriers to transparency and disclosure. Limited sharing of
information only slows the process of becoming more efficient.
Costs
• Management does not always see the "value" in life cycle thinking. Often it is difficult to make people
understand there is a "better" way to conduct business when they have been successful in the past.
• Smaller companies often do not have the resources to work on these issues on their own.
• It is cost prohibitive to recover some materials, and sometimes the recycling process can change the
material's functionality.
• Decision makers are often focused on the short term (e.g., short payback periods or short return on
investment horizons) versus longer-term benefits. This can lead to bad decisions when viewed from a
life cycle perspective.
9.2.4 Suggested Changes, Improvements, or Actions
• A formal system that facilitates sharing of data, lessons learned and best practices between large and
small companies needs to be developed. This would benefit both small and large companies and
allow for the fast scaling up of positive initiatives. Informally, workshops like this one provide an
opportunity for colleagues from different companies to sit down at the same table and exchange
ideas, but a formalized process that did not require an international conference would be ideal.
• Improved industry and international standards and certifications on resource efficiency and
manufacturing waste can be a path to drive change for the better throughout industry. This change
partnered with more standardized and accepted consumer-side eco-labeling will push industry to
better practices. This is a particular area in which the G7 and G20 could be serious change agents.
• To facilitate communication between competitors, there may be a role for government to gather best
practices and synthesize them into industry-wide guidance that would be publically available.
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• Governments, non-governmental organizations and trade associations have to continue to educate
consumers so that they can make better, more informed decisions. This in turn will drive companies
to develop better and better business practices to attract consumers.
• Often government regulations do not evolve as fast as the state of the art of industrial practices.
Currently, there are regulations, like the Resource Conservation and Recovery Act (RCRA), that are
limiting the reuse of materials across industries. Governments need to take a hard look at their
regulations and update or modernize them when they become a barrier to better practices and
innovation.
• More cooperation between government agencies would help to ensure that the government is talking
with one voice and putting forward the best possible policies and guidance. For example, it seems
that EPA and DOE are working at cross principles. This leads to uncertainty about federal regulations
and guidance and acts as a barrier to corporations being able to act in a proactive manner.
9.3 HOW MIGHT WE IMPROVE THE RECYCLING OF VEHICLES AT THE END OF LIFE,
BOTH INCREASING RECYCLING RATES AND IMPROVING THE RECYCLABILITY OF
COMPONENTS?
9.3.1 Conversation Starters
Mr. Steve Fletcher, Auto Recyclers Canada (ARC). Mr. Fletcher provided an overview of Canada's
efforts to infuse life cycle thinking into the recycling of products. Not only are parts extracted that can be
refurbished or reused, but materials are processed, typically by shredding, so that they can be recycled.
He provided an overview of the National Vehicle Scrappage program in Canada, which was a program to
minimize emissions by reducing the number of high emitting vehicles on the road. There was a $300
incentive for vehicle owners to retire their cars, and all of the vehicles that were recycled as part of "Retire
Your Ride" were sent to audited auto recycler locations that agreed to follow a standard code of practice.
This code of practice served as the foundation for the Canadian Auto Recycler Environmental Code, a
voluntary program that is half compliance, half best practice. The Code was developed by industry from
the ground up, and approximately 500 businesses have gone through the certification process and are
participating in a variety of vehicle retirement programs managed by ARC. Mr. Fletcher also noted that
ARC coordinates with and communicates regularly with manufacturers on the recycling process. Finally,
Mr. Fletcher highlighted that access to parts data is a priority, and can improve the reuse and recycling of
vehicles, in addition to recalls.
9.3.2 Best Practices
There were no additional best practices shared by participants.
9.3.3 Challenges
Access to Data
• Currently, OEMs do not provide all source information electronically for each of their parts. This
information is extremely important so that recyclers can provide correct and quality parts that are
retrieved from recycled vehicles. Data access further allows recyclers to ensure that they are
providing accurate parts and ensures that recalled parts are properly fixed. For consumers to be able
to reuse components, the source data needs to be openly shared.
• In November 2015, the U.S. House of Representatives supported legislation that would require
information on all parts of all vehicles to be shared openly; however, this was not passed by the
Senate and was revised to limit this requirement only to recalled parts.
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• There are three million vehicles declared a total loss annually. Auto recyclers have certified parts and
OEMs have "certified pre-owned parts." The auto recycler parts could be used to minimize the
number of vehicles that are declared a total loss annually.
• In most industries, there is intellectual data and property that is proprietary which would assist in the
respective industry's recycling process. The challenge is how to provide that information or get
access to it without jeopardizing the industry's competition.
Classification of Recycled Materials
• One challenge that recyclers face is that some recycled materials are classified as solid waste
instead of as a resource. Solid waste has regulatory requirements thus restricting or delaying the
collection, reuse and process of possible recycled materials. With the solid waste classification, more
material is sent to a landfill versus being collected and used for the development of new products.
Vehicles remain hazardous waste until they are de-polluted resulting in a heavier burden on the
recycling industry. Getting retired vehicles to be seen as a recyclable material and not waste would
be a huge improvement.
Commission on Parts
• One instance where the recycling industry and the United States would support additional regulation
would be regarding commission on repair parts. The United States has several regulations regarding
recycling, and most in the industry would be reluctant to codify the voluntary and best practices
further by implementing additional regulation; however, this is an area where additional legislation
would be supported. One example is that a collision repair shop loses money when using a recycled
part versus a new OEM part. If a vehicle needs a new door; the new door is $1,000, and a recycled
door is $500. The commission on the part is 35 percent; therefore, the collision repair shop loses
money by using the recycled part. If a schedule of pricing was set, by part, whether new or recycled,
a level playing field would be established.
Conflicting Environmental Priorities
• There are conflicting environmental priorities that face both OEMs and recyclers. One example is the
need to lightweight vehicles to be more fuel efficient, but this results in use of materials that do not
have a recycling market. For example, carbon fiber in vehicles cannot be recycled at this time as
there is not currently a composite market for the material. A market would need to be established in
order for it to be viable to recycle. (NOTE: A later presentation by Bob Larsen of Composite Recycling
highlighted a new enterprise that is designed to address this specific problem.)
• Currently, not all of the components of vehicles are designed for reuse and recycling. For example,
air bags are required in vehicles, but were not designed for recycling. Some key questions include:
Can air bags be reused? Are there liability and safety concerns regarding reuse? If they cannot be
reused, they need to be deployed prior to the shredding process; otherwise they can deploy during
shredding and result in potential injuries.
Marketing/Messaging
• It is difficult to promote use of recycled materials if each OEM puts out a statement recommending
against the use of recycled materials on their vehicles. Recyclers use parts and products with the
same use, durability and life cycle as OEMs' parts.
9.3.4 Suggested Changes, Improvements or Actions
Access to Data
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• The process to access data globally needs to be modernized. (Note: This is applicable to all recycling
industries, not just automotive). To achieve this, all industries can work with recyclers directly to
discuss and collaborate to identify options.
- Action for the auto industry, which can be applied to all industries: The request was made for
a meeting between decision makers from OEMs and recyclers to try to reach agreement
without a need for legislation.
Classification of Recycled Materials
• Recyclers would support legislative changes to classify recycled materials as a resource versus a
solid waste. Additional outreach, education and communication are needed to achieve support for this
change.
• Recognition that recycled parts meet OEM standards is needed.
- Action: Incentivize the use of recycled parts in repair shops. Government regulation of
commission rates for collision repair shops should be generic to a part, with a flat fee, so that
the part chosen for the repair is the best value for the consumer.
Conflicting Environmental Priorities
• The auto industry should design for recycling. Collaboration should be enhanced between OEMs and
recyclers to design vehicles for reuse and recycling.
• Action: Create a common set of standard operating procedures (SOPs) for safety for the auto
recycling process (i.e., to ensure that all airbags are deployed prior to the vehicle being sent to the
shredder).
• Action: A market for recycled composite materials needs to be developed. Otherwise, these materials
will continue to go straight to landfills. Incentivize the use of recycled composite materials to
encourage businesses to develop a composite market.
Marketing/Messaging
• Everyone in the life cycle (i.e., OEMs, recyclers) needs to recognize the importance of working
together to achieve a common goal.
- Action: Dialogue is required between the OEMs and recyclers to identify a joint message that
is beneficial to both.
9.4 HOW CAN WE EXPAND THE USE OF REMANUFACTURED OR REFURBISHED
PARTS?
9.4.1 Conversation Starters
Dr. Nabil Nasr, Rochester Institute of Technology. Dr. Nasr discussed his work with leading
companies to encourage remanufacturing and reuse. Dr. Nasr presented a holistic, systems perspective
on remanufacturing and refurbishment. He sees remanufacturing as the most important issue forgetting
to a closed loop economy and for improving resource efficiency - i.e., how to move the industrial world
from pollution control to industrial ecology.
Dr. Nasr shared two specific examples of success stories. First, DoD is the largest remanufacturer and
refurbisher in the world, particularly with military vehicles. The second is Cardone, a private company with
5,500 employees that is taking innovative strides to get to zero environmental waste discharge. Cardone
remanufactures over 65 different product lines as part of waste elimination efforts.
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In the 2011, the U.S. Council on Competitiveness, a collaborative effort between industry and the U.S.
Department of Commerce, led a strategic dialogue on remanufacturing. The dialogue identified
challenges and opportunities in three areas: research and development; trade and federal policy; and
public relations and legal issues.
Dr. Nasr also updated participants on the work of the UNEP International Resource Panel. That group
has identified remanufacturing as a key focus of future work and research because of its important role in
advancing the circular economy and innovation.
9.4.2 Best Practices
The following best practices were offered on issue cards, but were not discussed by the group. However,
several of them are elaborated on in the challenges and opportunities sections that follow.
• Universal definitions are critical.
• Remanufacturing efforts should first focus on long-term use goods. These types of goods provide the
most remanufacturing opportunities because the product may be around many years after OEMs stop
making them or their associated parts.
• Utilize logistics chains to enable remanufacturing and recyclability. Suppliers should be set up to
receive used parts as raw materials for either remanufacturing or recycling.
• The sharing economy can help increase the value and use of remanufactured products. Individuals
and organizations that participate in sharing-based businesses have already adopted a "reuse"
mentality that is critical in recognizing the value of remanufactured goods.
• The Xerox Company service model has been effective in maintaining a high standard of quality and
use throughout the life of its products.
9.4.3 Challenges
Definitions of Terms
• It was noted that "remanufactured" and "refurbished" are terms that seem to create a lot of confusion.
While the Basel Convention did develop strict conventions on the definitions, the concerns relate
more to refurbishment and remanufacturing than to recycling and reuse.
- Generally, refurbishment is defined as bringing a product back to a fully functional sate, but
not brand new. Remanufactured, meanwhile, means that a new product has been created.
• Applying a definition across many different sectors can potentially dilute the meaning or make it
vague.
• Remanufactured products are different from "as good as new," as they are completely new products.
Companies typically offer the same pricing and guarantees for a remanufactured product as they do
fora product made of virgin-sourced materials.
Perception of Remanufactured Goods
• Currently, it is easier to sell remanufactured goods in business-to-business transactions, rather than
business-to-consumer transactions. If we want to enhance automotive remanufacturing, then we
need to educate the end user and make them proud to be using a remanufactured product.
• There is a misperception that companies do not extend the life cycle of products beyond the design
cycle. Caterpillar, for example, upgrades engines to meet new engine standards, and in some
circumstances, these remanufactured engines perform even slightly better.
Lease, Ownership, and Service Models and Adapting to a Sharing Economy
• The sharing economy is an approach to enhance the economic value of refurbished and
remanufactured products, as the customer is looking for service, not a particular product.
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• Supporting leasing, service and innovative ownership models could have significant impact in
encouraging remanufacturing, as customers would then have an incentive to bring a product in for an
upgrade rather than maximizing the use of the product or throwing the product out once it has been
used.
Reverse Logistics & Feasibility of Remanufacturing
• Suppliers are typically providers of raw material. Remanufacturing reverses this paradigm making the
supplier the recipient of raw materials. This shift requires a change in mindset. Logistically, it is more
complicated, as remanufacturing supply chains are more vertically integrated; this means that
companies must be involved in managing products in all phases of the life cycle, from beginning to
end. Additionally, software and Enterprise Resource Planning (ERP) systems, in large part, are not
currently structured to handle a CE. There are difficulties in tracking part numbers, as this information
is usually not available to OEMs. As such, an open system, where companies have access to this
information, would help in their ability to remanufacture items. This may require government
standards to implement.
• In the computer/software industry model new products can be created by updating the same
software, but the automotive industry has not been developed this way. If a transformation could
occur, such as changing the way power trains are developed so that "plug and play" with different
parts could occur, major changes in the industry would be possible.
It was noted that there is a manufacturer in the United States that is working on such a
concept by converting the combustion engine to an electric engine.
• There are also very few instances in which parts are remanufactured by other industries to create
completely new products. This cuts off a variety of potential remanufacturing opportunities.
- Often this is due to institutional barriers, such as the repurposing of car batteries to be used
in houses to generate energy; electric utility companies are opposed to this because of the
potential negative impact on their bottom line; in addition, insurance companies see potential
liability issues.
• In general, a macro review of the industry could be helpful in creating a "frictionless environment."
Areas such as building codes (e.g., using car batteries in buildings), car warranties and car part
warranties need to be examined. Changes in policies and regulations would also have to occur. For
example, there are impediments related to transferring "universal waste" across state borders;
therefore, the U.S. Department of Transportation (DOT) would need to address existing regulations.
• While industry needs to do a better job of designing for remanufacturing, this may be at odds with
other eco-design objectives such as recycling materials.
The following additional challenges were offered on issue cards, but were not discussed by the group:
• The energy required to dismantle and recycle a vehicle.
• Lack of documentation of the environmental and economic benefits of remanufacturing and
refurbishing.
• When cars are at the end of their life in the developed world, they may get recycled for parts or find
new life (continue to pollute) in developing countries.
• Market and regulatory perceptions of remanufactured and refurbished products.
• Supply of quality "cores" suitable for remanufacturing - e.g., automotive parts for remanufacturing.
• Need to establish consistent standards for remanufacturing that spans all industries/products.
• Products with short lives, such as cell phones, present a huge challenge. Longer life span products
like cars, health care equipment are better suited to remanufacturing and refurbishment.
• Universal waste rules can complicate remanufacturing refurbishment and limit backhauls.
9.4.4 Suggested Changes, Improvements or Actions
Government/Policy Action
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• One suggestion, which was controversial amongst the group, was to apply for U.S. Corporate
Average Fuel Economy (CAFE) standards for all cars on the road, not just new cars, as old cars
release higher emissions. This could encourage the auto industry to design vehicles with updates in
mind, driving remanufacturing and extending the life of cars.
• Addressing, or increasing, the availability of open systems with regard to parts data and software
ownership, potentially by updating the Digital Millennium Copyright Act.
• It would be beneficial to examine policies that impede remanufacturing opportunities, such as the
standardization of remanufactured product warranties that are the equivalent of new product
warranties.
• Government could require remanufacturing and refurbished products when conducting public
procurement.
• A campaign to publicize the benefits of remanufacturing to millennials in an effort to enlist their
support for remanufactured products. The idea would be to work to make remanufacturing cool and
commonplace and get remanufacturing into the daily conscious so that people look for it and want it -
similar to the Energy Star initiative.
• Require corporations and government agencies to share their remanufacturing and refurbishing
efforts in their annual reports, and make these initiatives part of their sustainability goals.
• Establish an international standard for remanufacturing similar to ISO 90001 that can be audited,
inspected and certified.
• Define remanufactured parts as equal to new in [Free Trade Agreements] "FTA".
• Right-to-repair policies should apply to parts in reuse and remanufacturing, meaning that all parts are
warrantied and can be used when repairing or servicing products.
Industry
• It was suggested that companies move away from using the term "remanufactured" and just market
the products like virgin-sourced products. However, there are legal implications to doing this.
• Industries should account for remanufacturing potential early in the product design cycle. They should
establish design models for remanufacturing of whole vehicles or products, not just designing cars or
products for remanufacturing of parts or assemblies.
• Companies should work to create alternative business models where consumers use/disuse
products, rather than own products. Companies would then decide when and how to recycle products
more efficiently.
• Research and development investment is needed in remanufacturing technologies.
• Companies should provide training or design programs to ensure effective collection of quality
automotive parts "cores."
• Explore with OEMs the potential for "Design to Upgrade" models. For example, design powertrains
that can be upgraded later in life to enhance efficiency.
Research & Collaboration Opportunities
• Educate the remanufacturing community about the current Enterprise Resource Planning capabilities
of the auto recycling industry.
• Improve the software to support reverse logistics to improve the efficiency and recovery of parts.
• Develop software systems focused on recyclability and remanufacturability of cars and car parts.
• Conduct research on how new ownership models and service systems impact resource efficiency.
These new models will change consumer behaviors and may encourage remanufacturing, as
customers would then have an incentive to bring a product in for an upgrade, rather than maximizing
the use of the product, or just throwing the product out once it has been used.
• Work with industry stakeholders (e.g., insurance companies) to update codes, standards, warranties
and related policies that discourage the practice of remanufacturing.
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9.5 HOW MIGHT WE EXPAND THE USE OF RECYCLED MATERIALS TO MINIMIZE RAW
MATERIAL USE IN A WAY THAT PROMOTES RESILIENCE AND
COMPETITIVENESS?
9.5.1 Conversation Starters
Ms. Jessica Sanderson, Novelis. Ms. Sanderson showed a video and discussed the process used by
Novelis to recycle aluminum. Novelis has developed an extensive network that allows the company to
process two million metric tons of scrap. Novelis recycles aluminum that is used in a number of different
industries from beverages to auto to architecture and promotes recycling of materials through designing
with recycling in mind and advanced sorting technology, including sorting different aluminum alloys. Ms.
Sanderson discussed the importance of partnerships and collaboration to increase the amount of scrap
taken back from customers, increase post-consumer recycling rates and enhance recycling infrastructure.
She also described some of the challenges associated with recycling, including: identifying materials that
are able to be recycled; negative public perception of using recycled materials; and the varying life spans
of different aluminum materials. Addressing these challenges is critical because there is not enough
recycled aluminum to meet demand.
9.5.2 Best Practices
• Manufacturers need to look at the full life cycle of a product in order to understand which parts are
made from recycled materials and which parts can be directly reused. Looking at the full life cycle
helps to identify opportunities for efficiency and can help manufacturers and users understand a
product's life span. The complexity of taking a full life cycle perspective varies based on the type of
product. For example, soda cans have a much shorter life span and are much less complex and
easier to recycle than cars or architectural components
• Novelis has partnered with auto manufacturers, like Ford, to create take-back programs, which helps
control the recycling process and facilitates the tracking of parts throughout the entire life cycle.
• Closed loops are difficult to achieve, but critical to successful recycling efforts. Novelis has achieved a
99 percent recycled material rate and is working toward using as little primary material as possible by
forcing a closed loop. Improving the information flow of products helps the company understand
product life cycles and the ways products can be designed to promote recyclability.
• Using easily recyclable alloys aids in the ability to recycle multiple scrap types. Novelis, along with
their auto partners, Jaguar and Ford, have developed a method to sort easily recyclable alloys, and
those that are not easily recyclable can be reused, upcycled ordowncycled.
• Stakeholder involvement and engagement is important because they can help drive the business
forward. Stakeholders, like consumers and shareholders, have questions and expectations for how
products are developed and used that can be helpful in marketing and in ensuring products are used
and disposed of as anticipated. Whirlpool and the plastics and "bio-based" industries more broadly
have worked with stakeholders to develop reused and recycled products that consumers want and
have been able to provide consumers with understandable resource-related information. Additionally,
continued development of recycling infrastructure has been a best practice, especially tools and
processes that employ traceability of materials to allow for expanded uses and characterization of
material to be reused and not just recycled.
• Stakeholder education and outreach is important because it helps them understand more about the
products, how they should be used, and how they can be reused or recycled at the end of life. Often
times, there is a gap between the manufacturer and the stakeholders in what recycled or reused
products are and how they can be used. The plastics and "bio-based" industries have worked on
educating stakeholders so that there is better communication and understanding. This has helped the
stakeholders and consumers ask more specific and driving questions that the manufacturers can use
to better inform their products.
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• Plastics and "bio-based" industries have educated their consumers about the value and costs of
recycled materials. This awareness helps increase recycling rates and promotes proper recycling
methods.
• Because so many materials have a large, complex material make-up, it can be difficult to determine
how to reuse or recycle different materials. The zinc industry has partnered with other industries to
access information about how materials can be reused or recycled. This saves a lot of time and
money, especially because the research has already been completed by experts. These partnerships
have formed across industries so that people work together or can easily access and share
information between and across industries. Once this information is shared, manufacturers can
change their manufacturing and business processes so that they are better equipped to reuse or
recycle many different materials, helping to eliminate waste.
• Metal recyclers identify materials that have the least amount of contaminants. Materials that have
fewer contaminants are easier and more cost-effective to recycle. Manufacturers should target
recycled materials that come from these "cleaner" sources.
• Understand the economics behind recycled materials and total costs of recycling versus raw
materials. Manufacturers need to look at the life cycle of recycled materials to understand the total
costs associated with that process compared to the total costs of acquiring and using raw materials.
• Capitalize on existing markets within or outside a particular industry. Manufacturers and recyclers are
finding markets that already exist and are tapping into them to create partnerships and other avenues
for recycled materials. Partnerships between manufacturers and recyclers enable them to work
together to identify different markets that can reuse or produce new products with the recycled
materials.
9.5.3 Challenges
• There are varying life cycles for materials. Cans have a very short life cycle, whereas vehicles have a
longer life cycle and building materials have a very long cycle. It can be difficult to track materials if
the life cycle is long, because the products have been in use for an extended amount of time.
Tracking materials throughout their life cycle helps in being able to easily and effectively reuse or
recycle them, but when the materials cannot be tracked, there is a challenge in understanding what
materials comprise the product and how best to reuse or recycle it.
• Recycled products are hard to trace, because determining exactly where the mix of recycled
materials derived from is almost impossible. There is little or no downstream data across certain
industries and countries, so there are gaps in information. These gaps in information present a
challenge because the full life cycle of a material is unknown, making it harder to determine all the
components of a product and how best to recycle them.
• The commodities markets are unstable, and there are times when the market will not be favorable to
recycling materials. There is a need to keep recycling a priority when there are fluctuations in the
market.
• Markets for recycled materials are growing, but they will eventually plateau because the market will
be saturated with product. Industry needs to identify uses for recycled materials when the markets do
plateau and how to keep up the demand for recycled materials.
• There are a number of products that can be reused, reclaimed or recycled, but there does not seem
to be a market for them. There should be a market that helps promote the availability of these excess
products, especially if they are being stockpiled. For example, residuals from mines have alloys and
other materials that have the potential to be reclaimed.
• The recycling industry is also competing with recent landfill investments. The creation of new landfills
alleviates the need for consumers to find alternative solutions for their waste and also does not
incentivize them to reuse or recycle products.
• Traceability is an important factor for stakeholders, but it is almost impossible to trace where the raw
materials came from. Many industries have found that stakeholders would like to be able to trace the
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materials used in products down to which mine the raw materials were pulled from. This is
impossible, especially in products that use a mix of recycled and raw materials.
• Manufacturers need to work with their customers to get a better understanding about the intersection
between consumer demand and recycled content. They need to know when consumers feel that
more recycled content is needed and when it may spark concerns about product reliability, quality
and cost.
9.5.4 Suggested Changes, Improvements or Actions
• Focus on areas of agreement between competitors, government and other entities. Find common
goals across industries and look at those areas to move forward with making changes and
improvements.
• Creating partnerships within and across industries will help recycling on a global scale. Companies
and manufacturers see the value in recycling, and working together will advance the global effort of
reusing and recycling materials. There is a need to look at the recycling industry as a whole and gett
buy-in across different industries to support recycling. Also, manufacturers need to look at the whole
life cycle of a product to see where there are gaps in material and use information. Creating
partnerships will help to fill in the gaps in information.
• Governments have incentives in place that encourage recycling. These programs need to continue.
Government also needs to be thinking of new and different ways to incentivize the recycling industry.
• The recycling industry also needs to have continued support for R&D so that new innovations can be
made to move the industry forward.
• Having a shared understanding of reuse and recycling costs and benefits will help consumers,
government, stakeholders and other industries share the costs of reuse and recycling.
• Identify products that make the most sense to recycle, such as those with the fewest contaminants.
Parcel out the products that can be easily recycled from those that cannot. Instead of getting stuck on
the problem of trying to figure out how to recycle a product with more contaminants, recycle the
materials that can be recycled easily while actively looking for solutions for the products that present
more challenges.
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10 ATTACHMENT 5 - WORKSHOP AGENDA
G7 Alliance on Resource Efficiency
U.S.-hosted Workshop on the Use of Life Cycle Concepts in Supply Chain
Management to Achieve Resource Efficiency
March 22-23, 2016
Ritz-Carlton Pentagon City
Arlington, Virginia
Agenda
Purpose
• Identify and document best practices related to the use of life cycle concepts in supply chain
management that are scalable, replicable and transferrable across organizational and geographic
boundaries
• Provide a forum for industry, policy makers, researchers, and interest groups to explore key
challenges to implementing life cycle concepts and engage in conversations that will advance
resource efficiency practices across the supply chain
• Share information about tools, resources, and programs available to help manufacturers,
suppliers, and others improve their use of life cycle concepts to achieve greater resource
efficiency
• Generate potential ideas for voluntary individual and collective action
March 22, 2016
7:30 - 8:30 Registration
8:30 - 8:40 Announcements (Patrick Tallarico, Enventive Consulting, Facilitator)
8:40 - 9:00 Opening Remarks by Representatives from the United States and Japan (Ms.
Christine Harada, White House Council on Environmental Quality; Mr. Mathy
Stanislaus, U.S. Environmental Protection Agency; Mr. Masahito Fukami, Japan
Ministry of the Environment)
9:00 - 9:10 Orientation to Workshop Agenda and Participant Assignments (Facilitator)
9:10 - 9:30 The Importance of Using Life Cycle Concepts to Achieve Resource Efficiency
(Dr. Steve Evans, Cambridge University)
• The presenter will help ensure a common understanding of the key
concepts of the workshop and will demonstrate why it is important to look
at product and service life cycles to accelerate resource efficiency.
Desired Outcome: Common understanding of key terms. Awareness about why it is
important and urgent to rethink the way we approach resource efficiency.
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9:30-10:30
10:30-10:50
10:50-12:30
12:30-1:30
1:30-3:00
Efficiency
Life Cycle Thinking Exercise: Creating a Vision for the Resource-efficient
Vehicle (Product or Service) of the Future (Panel Members: Mr. Mike Swift, Auto
Recycling Association; Prof. Yasushi Umeda, University of Tokyo; Ms. Antonia
Gawel, World Economic Forum; Jean-Francois Gaillaud, French Ministry of
Economy, Industry and Digital Affairs; Karen Cecil, Cummins; John Bradburn,
General Motors)
• A facilitated panel discussion reflecting various perspectives will create a
vision for the resource-efficient vehicle, product, or service of the future.
• The audience will be engaged in the discussion after the initial panel
discussion to complete this vision.
Desired Outcome: A broader perspective on what it means to have a resource-
efficient vehicle (product or service) from a life cycle perspective that can inspire
thinking during the workshop.
BREAK
Upstream Efforts to Address Resource Efficiency
• Leaders from public and private-sector organizations will discuss new
programs and/or share best practices and success stories from various
industry perspectives. Presenters will be engaged in a discussion of factors
that contributed to success.
o Mr. Philippe Dauphin, Natural Resources Canada - Energy Mines
Resources.ca, an Integrated Resource Cycle
o Ms. Ursula Mathar, BMW Group - Using Life Cycle Thinking and
Supply Chain Engagement to Achieve Resource Efficiency
o Dr. Lee Davies, Department for Environment, Food and Rural
Affairs, United Kingdom - Developing Policy to Support
Sustainable Innovation
o Dr. Alessandro Peru, Ministry of the Environment, Italy - New
Voluntary Approach for Assessment and Communication of
Environmental Footprint
o Ms. Yuko Sakai, Toyota - Toyota's Challenge for Resource
Recycling Management
Desired Outcome: Transferrable best practices that reflect the use of life cycle
concepts to achieve resource efficiency across the supply chain.
LUNCH On Own
Facilitated Breakout Series 1 - Upstream Efforts to Address Resource
Breakout Session Design
* Conversation Starters will share brief success stories and "best"
practices
* Participants will share their own "best" practices.
* Group will identify ideas that are transferrable across industry sectors
* Group will discuss remaining challenges and opportunities and
brainstorm practical ideas for action: Policy (National/International),
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• GRAND BALLROOM: How can we use the design process to improve
resource efficiency from a life cycle perspective? (Conversation Starters:
Carrie Pearson, 3M - Integrating Sustainability into the Design Process;
Werner Loscheider, Germany- Light weighting) Facilitator- Doug Sarno
• PLAZA A&B: How can we improve how we use life cycle information and
life cycle thinking to set goals and better inform resource efficiency
decisions? (Conversation Starter: Jim Fava, United Nations Environment
Programme HotspotProject; Ron Voglewede, Whirlpool) Facilitator- Doug
Black
• PLAZA C: How can we improve how we use life cycle information and life
cycle thinking to set goals and better inform resource efficiency decisions?
(Conversation Starter: Bill Flanagan, GE) Facilitator- Bryan Pai
• PLAZA D: How do we do a better job of identifying, communicating, and
addressing social impacts across the supply chain? (Conversation
Starter: Jeff Morgan, Mars Corporation; Kevin Funk, U.S. General Service
Administration) Facilitator- Mary Apostolico
• DIPLOMAT: How can we improve communication and share information
about resource efficiency across the supply chain? (Conversation Starters:
Mrs. Sue Rokosz, Ford PACE Program; Mr. Jason Pearson, Sustainable
Purchasing Leadership Council) Facilitator - Dana Goodson
Desired Outcome: Shared "best" practices as well as identification of remaining
challenges and potential actions to advance resource efficiency.
3:00-3:20 BREAK
3:20 - 3:45 Breakout Reports
3:45 - 4:15 Circular Economy Principles in Action (Jean-Francois Gaillaud, Ministry for
Economy and Industry, France; Philippe Schulz, Groupe Renault)
4:15 - 5:00 Tool Time: Tools and Resources to Accelerate Resource Efficiency
• Participants will have the opportunity to briefly learn about innovative tools
and resources that may help them improve their resource efficiency efforts.
o Paul Yaroschak, U.S. Department of Defense - Sustainability
Analysis Tool
o Joe Cresko, U.S. Department of Energy - LIGHTEn-UP and MFI
o Elisa Tonda, UNEP - Global Network of Interoperable LCA Databases
o Chuck Shoopman, University of Tennessee - Investing in
Manufacturing Communities Partnership (IMCP)
o Andy Mangan, US Business Council on Sustainable Development
and Andrea Brown, World Business Council on Sustainable
Development - The Materials Marketplace
o Steve Gutmann - Stuffstr
Desired Outcome: New information about tools, resources, and programs available
to help manufacturers, suppliers, and others achieve greater resource efficiency.
5:00 - 5:15 Day 1 Closing Exercise - Small Group Discussions at Tables to Reflect on
Key Insights and Encourage Networking
5:15 - 6:30 Welcome Reception
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March 23, 2016
8:30-8:45
8:45-9:00
9:00-9:15
9:15-10:30
10:30-10:45
10:45-12:15
Announcements, Recap of Day 1, Preview of Day 2, Assignment Reminder
Opening Remarks from Dr. Wolfgang Scheremet, Director General, German
Ministry of Economic Affairs and Energy
Opening Remarks from Gina McCarthy, Administrator, U.S. Environmental
Protection Agency
Improving Resource Efficiency in Operations, Use and at End of Life (or
Second Life) with Supply Chain Engagement
• Leaders from public and private-sector organizations will share best
practices and success stories from various industry perspectives.
Presenters will be engaged in a discussion of factors that contributed to
success.
o Yuji Yamaguchi, Ministry of the Environment, Japan - Japan's Initiatives
to Promote Resource Efficiency and the 3Rs in the Auto Sector
o Lynn Laszewski, PepsiCo - The Realities of End of Life Resource
Efficiency
o Adam Muellerweiss, Johnson Controls - Insights from the Circular
Economy of Automotive Batteries
o Peter Bartel, Robert Bosch - Ensuring Long-term Availability of
Remanufactured Spare Parts
o Dr. Paolo Masoni, Italian National Agency for New Technologies,
Energy - Extracting Value from End-of-life Materials: Car
Shredding Residues and Tires
Desired Outcome: Transferrable best practices that reflect the use of life cycle
concepts to achieve resource efficiency in operations, use, and at end of life by
engaging the supply chain.
BREAK
Facilitated Breakout Series 2 - Improving Resource Efficiency in Operations,
Use and at End of Life
Breakout Session Design
* Conversation Starters will share brief success stories and "best"
practices
* Participants will share their own "best" practices.
* Group will identify ideas that are transferrable across industry sectors
* Group will discuss remaining challenges and opportunities and
brainstorm practical ideas for action: Policy (National/International),
GRAND BALLROOM: How do we incorporate and improve efficiency in
other areas such as water, energy, land, etc. ? (Conversation Starter:
Bruce Uhlman, BASF) Facilitator- Dana Goodson
PLAZA A&B: How can we create value from waste materials?
(Conversation Starters: John Bradburn, GM; Kevin Butt - Toyota North
America) Facilitator- Doug Sarno
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• PLAZA C: How might we improve the recycling of vehicles at the end of
life, both increasing recycling rates and improving the recyclability of
components? (Steve Fletcher, Auto Recyclers Canada) Facilitator - Mary
Apostolico
• PLAZA D: How can we expand the use of remanufactured or
refurbished parts? (Conversation Starter: Nabil Nasr, RIT) Facilitator-
Bryan Pai
• DIPLOMAT: How might we expand the use of recycled materials to
minimize raw material use in a way that promotes resilience and
competitiveness? (Conversation Starter: Jessica Sanderson, Novelis)
Facilitator- Doug Black
Desired Outcome: Shared "best" practices as well as identification of remaining
challenges and potential actions to advance resource efficiency.
12:15-1:15 LUNCH
1:15-1:45 Breakout Reports
1:45 - 2:45 Critical Factors for Successful Implementation
• A panel discussion to explore two critical factors for successful
implementation - scaling up ideas and engaging in cooperative
relationships across the supply chain and beyond.
o Bob Larsen, Composite Recycling
o Mike Mullin, Brambles Limited
o Steve Hellem, Suppliers Partnership for the Environment
o Dr. Wolfgang Scheremet, German Ministry of Economic Affairs and
Energy
Desired Outcome: Understanding of how some companies and countries are
implementing innovative resource efficiency solutions.
2:45 - 3:10 Exercise to Advance Innovative Ideas
• Participants will be asked to discuss ideas for improving resource efficiency
or addressing a key challenge. They will engage other participants, and
each table will choose one idea to put forward for consideration during the
subsequent breakout sessions.
Desired Outcome: Potential action plans to implement resource efficiency ideas.
3:10-3:20 BREAK
3:20 - 4:05 Moving from Ideas to Action
• Audience-specific breakout discussions (e.g., government-only, industry
only, etc.) to process workshop findings, identify potential actions, and
articulate transferrable themes.
o GRAND BALLROOM: Government and Intergovernmental
Organizations
o PLAZA A&B: Other Industry Sectors
o PLAZA C: Waste Management and Recycling
o PLAZA D: Environmental and Academics
o DIPLOMAT: Auto Sector
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Desired Outcome: Ideas for action that may cut across organizations, industry
sectors, and geographic borders.
4:05-4:15 BREAK
4:15 - 5:00 Key Observations and Potential Next Steps
• Participants will report out on the results of their audience-specific breakout
discussions and focus on potential next steps and desired actions.
5:00 - 5:15 Closing Remarks by Mr. Mathy Stanislaus, Assistant Administrator, Office of
Land and Emergency Management, U.S. Environmental Protection Agency;
and Mr. Masahito Fukami, Counselor, Ministry of the Environment, Japan.
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11 ATTACHMENT 6 - WORKSHOP PARTICIPANT LIST
Final Participant List
Name
Ms. Chika Aoki-Suzuki
Mr. John Armstead
Mr. Douglas Baltz
Mr. Russ Balzer
Mr. Peter Bartel
Dr. Alan Barton
Ms. Kit Batten
Dr. Georg Bauml
Mr. Richard Beaumont
Ms. Patricia Beneke
Ms. Delanne Bernier
Mr. Greg Bertelsen
Mr. Randy Bertram
Ms. Sara Bixby
Mr. Rasmus Boldsen
Ms. Marijn Boll
Ms. Melanie Bower
Mr. John Bradburn
Dr. Sue Briggum
Ms. Andrea Brown
Mr. Mark Buckley
Ms. Bridget Burnell
Mr. Kevin Butt
Ms. Kerry Callahan
Mr. Colin Carroll
Ms. Karen Cecil
Ms. Holly Chapell
Prof. Marian Chertow
Mr. Peter Chipman
Ms. Kim Cochran
Ms. Cheryl Coleman
Mr. Brennan Conaway
Ms. Sandra Connors
Title
Researcher
Director
Einstein Fellow
Technical Director
Reman Process Owner
Chief Executive Officer
Executive Director
Senior Manager
CEO
Regional Director
Director of Policy and Political Affairs
Senior Director
Director of Sustainability Services
Deputy Executive Director
Advisor for the Netherlands Network
for Innovation
Credibility Manager
Global Manager Waste Reduction
VP State and Federal Policy
Director, Sustainable Materials
VP Environmental Affairs
Manager, Env. Sustainability
Regional Environmental Director
Senior RCRA Program Manager
Director, EHS
Director, Global Environmental
Sustainability
Director, Government Affairs
Professor
Senior Sustainability Officer
Division Director
Director
Organization
Institute for Global Environment Strategies (IGES)
U.S. EPA
National Science Foundation
WorldAutoSteel
Robert Bosch GmbH
Lehigh Technologies
DC Davis Policy Institute for Energy, Environment
&the Economy
Volkswagen AG
Green Standards
UNEP
Automotive Recyclers Association
National Association of Manufacturers
Wisconsin Manufacturing Extension Partnership
Solid Waste Association of North America
European Commission
The Netherlands Embassy in Washington, D.C.
Green Electronics Council
General Motors
Waste Management
World Business Council for Sustainable
Development
Staples
General Motors
Toyota Motor North America
ASTSWMO
American Iron and Steel Institute
Cummins Inc.
Umicore USA
Yale Center for Industrial Ecology
White House Council on Environmental Quality
U.S. EPA
U.S. EPA
U.S. General Services Administration
U.S. EPA
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Name
Ms. Denise Coogan
Mr. Joe Cresko
Ms. Cynthia Cummis
Mr. Philippe Dauphin
Dr. Lee Davies
Mr. Nico Dekker
Mr. Daniel Donatelli
Mrs. Jana Dbrschel
Mr. Tom Dower
Prof. Steve Evans
Dr. Jim Fava*
Mr. Timothy Fields
Dr. Joseph Fiksel
Dr. William Flanagan
Mr. Steve Fletcher
Mr. Michael Forbeck
Mr. Matthew Forman
Ms. Hilary French
Mr. Masahito Fukami
Mr. ColinScott Fulton
Mr. Kevin Funk
Mr. Jean-Francois
Gaillaud
Ms. Antonia Gawel
Mr. Bob Gedert
Ms. Nancy Gillis
Mr. Michael Glikes
Mrs. Gretchen Govoni
Mrs. Margaret Guerriero
Mr. Steve Gutmann*
Ms. Priscilla Halloran
Ms. Christine Harada
Mr. Eric Harris
Ms. Megann Head
Mr. Steve Hellem
Mr. Garth Hickle
Mr. John Howes
Title
Environmental Partnerships Manager
Deputy Director, Greenhouse Gas
Protocol
Director General
Principal Social Scientist
Assistant to the Counselor
Senior Manager, Sustainability
Official
Senior Director, Gov. Rel.
Professor
Chairman
Senior Vice President
Executive Director, Sustainable
Economy
Director, Ecoassessment Center of
Excellence
Managing Director
Environmental Program Manager
Federal Affairs
Program Officer
Counselor
President
Sustainable Acquisition Program
Lead
Deputy at Eco-lndustries and
Sustainable Development
Associate Director
Director
Chief Executive Officer
Director Corporate Sustainability
Director
Senior Environmental Health Scientist
Federal Chief Sustainability Officer
Assistant Vice President of
Government Affairs
Environmental Design Engineer
Executive Director
Principal
Organization
Subaru
U.S. Department of Energy
World Resources Institute
CanmetMATERIALS
UK DEFRA
Embassy of the Kingdom of the Netherlands
Brambles
Federal Ministry of Economic Affairs and Energy,
Germany
ArcelorMittal
Cambridge University
Thinkstep
MDB, Inc.
The Ohio State University
General Electric
Automotive Recyclers of Canada
Pennsylvania Department of Environmental
Protection
FCA
UNEP
Ministry of the Environment, Japan
Environmental Law Institute
U.S. General Services Administration
Ministry of Economy, Industry and Digital Affairs,
France
World Economic Forum
Austin Resource Recovery
Green Electronics Council
U.S. EPA
SABIC
U.S. EPA
Stuffstr
U.S. EPA
White House Council on Environmental Quality
Institute of Scrap Recycling Industries
Steelcase
Suppliers Partnership for the Environment
Environmental Council of the States
Redland Energy Group
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Name
Mr. Yoshihiro Iwata
Mr. Bryan Jacobs
Mr. Louis Johnston
Dr. Richard Kashmanian
Minister Kunihiko
Kawazu
Mr. Kevin Kelley
Ms. Monika Kern
Mr. Dohyeong Kim
Ms. Teri Kline
Counselor Hidechika
Koizumi
Mr. Kevin Koonce
Dr. Mark Kozdras
Minister Junichiro
Kuroda
Ms. Kathleen Laird
Mr. Jim Laney
Mr. Robert Larsen
Ms. Lynn Laszewski
Mr. Mike Levy
Mr. Gary Liss
Mr. Gary Litman
Mr. Werner Loscheider
Mr. Ted MacDonald
Ms. Christina Macken
Mr. Kellen Mahoney
Mr. Andrew Mangan
Mr. Paolo Masoni
Mrs. Ursula Mathar
Mr. Carl Mattia
Ms. Kelly McAllister
Ms. Gina McCarthy
Mrs. Heather McTeer
Toney
Mr. Drew Merrill
Mr. Anders Moeller
Title
Assistant Director
Vice President, Government and
External Affairs
Manager of Environmental Programs
Senior Economist
Plant Manager
Executive Advisor to VP
Manager
Public Policy Manager
VP Government Affairs
Program Manager, Automotive
Vice President
Senior Manager North American
Safety, Health & Env
Chief Executive Officer
Senior Director, Life Cycle Issues,
Plastics Division
Vice President
Vice President, Global Initiatives
Head of Unit
Senior Sustainability Officer
Director of Programs
Program Manager
Executive Director
Research Director
VP Sustainability & Environmental
Protection
General Counsel
Chemist
Administrator
Regional Administrator
Vice President, General Manager
Managing Director
Organization
Ministry of Economy, Trade and Industry, Japan
BMW Group
FCA
U.S. EPA
Japanese Embassy
Xerox Corporation
NRC
Center of Resource Recirculation Promotion (TF)
General Motors
Japanese Embassy
Vinyl Institute
Natural Resources Canada / CanmetMATERIALS
Japanese Embassy
Goodwill Automotive / Goodwill Industries of
Greater Detroit
DENSO International America Inc.
Composite Recycling Technology Center
PepsiCo
American Chemistry Council (ACC)
U.S. Zero Waste Business Council
U.S. Chamber of Commerce
Federal Ministry of Economic Affairs and Energy,
Germany
U.S. EPA, Office of Global Affairs and Policy
Sustainable Purchasing
Suppliers Partnership for the Environment
U.S. Business Council on Sustainable
Development
ENEA: Italian National Agency for New
Technologies, Energy and Sustainable Economic
Development
BMW Group
CLX Logistics LLC
U.S. EPA
U.S. EPA
U.S. EPA
CHEP
Hollander LLC
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Name
Mr. Jeff Morgan
Prof. Daniel Mueller
Mr. Adam Muellerweiss
Mr. Mike Mullin
Mr. Tom Murray
Ms. Angela Nahikian
Dr. Nabil Nasr
Mrs. Maria Negron Kneib
Ms. Jane Nishida
Mr. Joshua Novikoff
Ms. Masako Ogawa
Mr. Jonghun Oh
Ms. Gina Oliver
Mr. Kazunobu Onogawa
Ms. Carrie Pearson
Mr. Jason Pearson
Ms. Deana Perlmutter
Dr. Alessandro Peru
Ms. Leah Pillsbury
Mrs. Amy Porter
Mr. Emmanuel Pouliquen
Mr. Christopher Prins
Mr. Robert Proctor
Ms. Verena Radulovic
Mr. Dhruv Raina
Ms. Dbrte Ratzmann
Ms. Elizabeth Resek
Mr. Robert Reynolds
Ms. Susan Robinson
Ms. Dania Rodriguez
Mrs. Sue Rokosz
Mr. Gregory Rose
Ms. Erin Saal
Dr. Abdelhadi Sahnoune
Title
Professor
Global Director, Sustainability &
Environmental Affairs
Senior Director Global Government
and Public Affairs
President
Director, Global Sustainability
Associate Provost & Director,
Golisano Institute
Council Director
Acting Assistant Administrator
Japan Program Manager
Senior Environmental Specialist
Deputy Director, Resource Circulation
Policy Division
Senior Director, Automotive Plastics
Division
Senior Fellow
LCA Supervisor
Executive Director
Principal
Coordinator of the European Public
Affairs
Foreign Service Officer
Deputy Federal Chief Sustainability
Officer
Principal Industry Specialist,
Manufacturing
International Coordinator
Manager
Senior Manager
Policy Advisor
Chief
Sr. Public Affairs Director
Executive Director
Senior Environmental Engineer
Director - Environment, Health &
Safety
Organization
Mars Corporation
NTNU
Johnson Controls
Brambles Limited
Tom Murray Environmental Consulting
Steelcase
Rochester Institute of Technology
Manufacturers Alliance for Productivity and
Innovation
U.S. EPA Office of International and Tribal Affairs
U.S. EPA
Global Environment Facility
Ministry of Environment, Republic of Korea
American Chemistry Council (ACC)
Institute for Global Environment Strategies (IGES)
3M
Sustainable Purchasing Leadership Council
The Integral Group
Italian Ministry of the Environment Land and the
Sea
U.S. Department of State
White House Council on Environmental Quality
IFC (World Bank Group)
U.S. EPA
Honda R&D Americas, Inc.
U.S. EPA
Owens Corning
Federal Ministry for the Environment, Nature
Conservation, Building and Nuclear, Germany
U.S. EPA
U.S. Department of State
Waste Management
ASTSWMO
Ford Motor Company
FCA
U.S. EPA
ExxonMobil Chemical Company
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Name
Mrs. Sarah Sajedi
Ms. Yuko Sakai
Ms. Kathleen Salyer
Mrs. Aisha Samples
Ms. Jessica Sanderson
Mr. David Sarokin
Dr. Susan Sawyer-
Beaulieu
Dr. Wolfgang Scheremet
Mr. Jeff Schroder
Mr. David Schroeder
Dr. Philippe Schulz
Mr. Donald Shandy
Dr. Stafford Sheehan
Ms. Kazuko Sherman
Mr. Charles Shoopman
Ms. Dee Siegel
Mr. Mike Smaha
Mr. Douglas Smith
Ms. Kristin Sparding
Mr. Chad Stackhouse
Mr. Mathy Stanislaus
Ms. Martha Stevenson
Mr. Eric Stuart
Ms. Rieko Suzuki
Mr. Mike Swift
Mr. Terry Tamminen
Mr. Thabet Tolaymat
Ms. Elisa Tonda
Mr. Robert Townsend
Mr. Tom Tyler
Mr. Bruce Uhlman
Prof. Yasushi Umeda
Mr. Jacob Vaillancourt
Mr. Mike Van Brunt
Dr. Eric Van Genderen
Title
Director of Research & Development
Project Manager
Deputy Director
Intern
Director, Sustainability
Specialist
Research Associate/PDF
Director General
CEO
Sales Director
Senior Expert, Environment, Energy &
Raw Materials
Attorney
Chief Scientific Officer
Assistant Vice President
Associate Chief Sustainability Officer
US Government Affairs
Director
Organization
ERA Environmental Management Solutions
Toyota Motor Corporation
U.S. EPA, Office of Resource Conservation
Recovery
University of Baltimore
No veils
U.S. EPA
University of Windsor
and
Federal Ministry of Economic Affairs and Energy,
Germany
Car-Part.com
Covanta
Renault
Crowe & Dunlevy
Waste Hub
Toyota Motor Corporation
University of Tennessee Institute for Public
Service
White House Council on Environmental Quality
Owens-Illinois, Inc.
Sony Electronics Inc.
U.S. Department of Labor, Bureau of International
Labor Affairs
Director of Business Development -
Strategic Accounts
Assistant Administrator
Director, Forests Strategy & Research
Forests Program
Vice President, Energy &
Environment
Vice President
Operating Partner
Engineer
Head of Unit
Director, North American Safety,
Health, Environment
Manager, Applied Sustainability
Professor
Chief Operating Officer
Director Sustainability
Associate Director, Environment &
Sustainability
Chemico Mays
U.S. EPA
World Wildlife Fund
Steel Manufacturers Association
Japanese Embassy
Swift's Trails End Auto Recycling
Pegasus Capital Advisors
U.S. EPA
UNEP
DENSO International America Inc.
U.S. EPA
BASF Corp.
The University of Tokyo
Waste Hub
Covanta
International Zinc Association
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U.S.-hosted G7 workshop on the Use of Life Cycle Concepts
to Achieve Resource Efficiency
Workshop Summary Proceedings
in Supply Chain Management
Name
Mr. Gary Vegh
Senior Environmental Toxicologist
Organization
ERA Environmental Management Solutions
Miss Willemien Vlas
Policy Advisor
Ministry of Infrastructure and the Environment of
the Netherlands
Mr. Ronald Voglewede Global Sustainability Director
Whirlpool Corporation
Mr. Hinrich Voss
CEO
Oemeta Inc.
Mr. Mark Washko
Head of Federal Government Affairs BASF Corp.
Mr. Michael Weber
Research Coordinator
German Embassy
Ms. Brooke Weizmann
Manager, Sustainability
BASF
Ms. Lecedra Welch
Program Manager
AIAG
Ms. Julie Wenah
Counselor and Policy Advisor
U.S. Dept. of Commerce/Economic Development
Administration
Mr. Michael Wilson
CEO
Automotive Recyclers Association
Mr. Nathan Wittstruck
Economist
U.S. EPA
Mr. Jeffrey Wooster
Global Sustainability Director
The Dow Chemical Company
Mr. Yuji Yamaguchi
Deputy Director
Ministry of the Environment, Japan
Minister Kanji
Yamanouchi
Japanese Embassy
Mr. Todd Yaney
Manager, Sustainability
Fiat Chrysler Automobiles
Mr. Paul Yaroschak
Deputy for Chemical & Material Risk
Management
U.S. Department of Defense
Prof. Steven Young
Professor
University of Waterloo
* Dr. Jim Fava provided a recorded presentation of the UNEP/SETAC Hotspot Project. Mr. Steve Gutmann presented
a short video and led a discussion on Stuffstr remotely. Mr. Adrian Tautscher of Jaguar Land Rover provided the
REALGAR Innovate UK video.
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