The environmental profile of plastics

1. PE DNA + Portfolio 2. Sources, options, drivers 3. LCA as the common approach to Sustainability 4. Example plastics vs. bio-plastic 5. Conclusions

PE INTERNATIONAL

The environmental profile of plastics over the supply chain according to LCA - ISO 14040 Polyking Event, W端rzburg Germany 2012

Dr. Martin Baitz

1. Welcome, why me meet Founded in 1991 213 employees 1,500+ customers â‚Ź25m sales in 2012

20+ Industry Specializations 160 Sustainability Professionals 200 Man Years of Reference Data Collection 2,000 Man Years of Sustainability Experience

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Sustainability is increasingly important to corporate strategy

ASPECTS OF SUSTAINABILITY Social Economic

* Forrester Research: estimated market take-off timeframe

2011*

Waste Resources

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Emissions

PE International is the market leader in LCA and offers strong Supply Chain capability

Water Energy

2008*

Carbon Reporting, analysis 1

Enterprise Carbon and Energy Management (ECEM) systems

Source: Forrester Research

2014*

PE International covers reporting and analysis of all aspects of Sustainability Enterprise-wide solution incl. life-cycle assessment (LCA), supply chain sustainability

Integrated financial and sustainability product / service portfolio management to align strategy and investment priorities

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Sustainability is a core driver of business success

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By Understanding where there are Opportunities for Improvement ....

Reduce Resource Costs

Minimize Environmental Risks

Develop More Sustainable Processes

Creating Create More Sustainable Products

Sustainable Business

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Values

Build Brand Equity

Optimize Supply Chain Performance

Improve Regulatory Compliance

PE has the assets to deliver a total sustainability solution

• 2,000 man years of sustainability knowledge and expertise

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• Sustainability Business Intelligence • Sustainability Performance Optimization

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‌.some Customers

1. PE DNA + Portfolio 2. Sources, options, drivers 3. LCA as the common approach to Sustainability 4. Example plastics vs. bio-plastic 5. Conclusions

The environmental profile of plastics over the supply chain according to LCA - ISO 14040

Information source and coverage requirements

It is about processes and products in industry. ďƒ data source industry

LCA is about improving industry processes, services and products.

Global coverage of process chains, multinational companies and international supply chains ďƒ Regionalization

Options to improve a status quo for Chemicals and Plastics

reduction of energy demand

Improve the quality/property

alternative sources

Improvement of EOL

Key aspects and drivers

Best option can be “well informed best compromise” Realistic assessment of burdens and benefits Improvement of the property in use phase often promising Drive for simplicity is taken (efficient decision support) Need for credibility is acknowledged (reliable decision, no hidden trade offs) Reality may complex and proper decisions may complex ISO standardized for professional application and credibility  LCA reduces complexity via relevancy

1. PE DNA + Portfolio 2. Sources, options, drivers 3. LCA as the common approach to Sustainability 4. Example plastics vs. bio-plastic 5. Conclusions

The environmental profile of plastics over the supply chain according to LCA - ISO 14040

LCA as know-how basis for different methodologies

LCA basis for different sustainability concepts Integrated Product Policy (IPP)

Life Cycle Assessment (LCA) Resource and Energy Efficiency Carbon Footprint

EU Commission: International Reference Life Cycle Data System (ILCD) Environmental Management System (EMS)

Providing quantitative answers to: Industries, associations, legislators, politicians Consultants, academics Consumers

Water Footprint

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From (technically) measured data to Impacts and risks

 Industry-“borne“ LCA data on plastics available in commonly known databases: PlasticsEurope, GaBi, ELCD 17.10.2012

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Quantification of sustainability

Sustainability assessment needs: integrated life-cycle approaches and coverage of all relevant aspects Environmental (quantifiable, LCA standards ISO 14040 ff, state of the art) Economic (quantifiable, e.g. LCC, long-time practice and established) Social (e.g. LCWT quantifiable but also “soft” aspects, increasingly used)



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Environmental, Economic and Social aspects in one approach

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The Life-Cycle approaches….

…avoid shift of problems Between life cycle phases (e.g. ethanol use  agriculture) Between protection goals (e.g. CO2  more land use/loss) Between countries and regions (e.g. between EU and Brazil)

..increase (decision) credibility: Framework ISO standards

…. interpret different impacts towards informed decisions (e.g. Global Warming, Nitrification, ….)

N Direction towards sustainability is clearer, Target is a value based political decision

W

E

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1. PE DNA + Portfolio 2. Sources, options, drivers 3. LCA as the common approach to Sustainability 4. Example plastics vs. bio-plastic 5. Conclusions

The environmental profile of plastics over the supply chain according to LCA - ISO 14040

Sustainability aspects of Bio-Plastics options Life-Cycle system

Supply and competition situation Biomass by-product or main product Biomass transport and storage

Biomass supply

Technology development status Kind of energy supply Energy by-product quality Tradeoff end-of-pipe measures Sellable by-products

Bioprocess

Distribution pathways Market introduction Flexible use (blends / pure) New infrastructure

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Bio-plastic use

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Background model “Agrarian production system� important Comparability to fossil reference essential

Clearing process

General agricultural process

Fertilizer Adjustment

Agrochemical processes

Reference system Land use

Tendencies in impacts of bio-based plastics (specific Reference fossil plastics

Global warming

CO2-uptake

Energy demand

often in correlation with GWP

Photosmog

no tendency, very specific, savings in use of conventional energy processes and substances vs. harvesting processes (burning)

Acidification

tendency disadvantage, if agrarian products are used (fertilizers) and especially with harvest burnings

Nitrification

tendency disadvantage, if agrarian products are used (fertilizers) and especially with harvest burnings

Ecotox

no tendency, very specific, savings in conventioal substanc releases vs. substances from pesticides , kind of field technique important

Humantox

tendency advantage due to savings in fossil Energy less Combusion processes

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Example Polyethylene based on bio and fossil sources Overview

Renewable sources

Input

Output

By-products

Ethylene from wheat

5,6 kg wheat (15% water)

1 kg Ethylene

1,97 kg DDGS dry

Ethylene from corn

5,3 kg corn (12% water)

1 kg Ethylene

1,97 kg DDGS dry

Ethylene from sugar beets

20,9 kg sugar beets (75% water)

1 kg Ethylene

0,73 kg DDGS dry + 1,1 kg pellets dry

Ethylene from sugar cane

23,3 kg sugar cane (74,5% water)

1 kg Ethylene

0,88 kg vinasse 60% water + 5,99 kg bagasse 50% water

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Example Polyethylene based on bio and fossil sources The supply chain (wheat option)

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Example Polyethylene based on bio and fossil sources By-product issue

Renewable sources

Standard use of by-product

Optional use of byproduct

Ethylene from wheat

animal feed

as energy source

Ethylene from corn

animal feed

as energy source

Ethylene from sugar beets

both animal feed vinasse partly as fertilizer, bagasse as energy source

as energy source vinasse and bagasse as energy source

Ethylene from sugar cane

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Example Polyethylene based on bio and fossil sources CO2 along the chain

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Example Polyethylene based on bio and fossil sources Results over relevant impacts

100%

Primary energy demand fossil

50%

Primary energy demand renewable Global Warming Potential (GWP) [kg CO2-Eqiv.]

0%

Ethylene via Ethylene from Ethylene from Ethylene from Ethylene from Steam Cracker EU wheat US corn from EU sugar BR sugar cane beet

Eutrophication Potential (EP) [kg Phosphate-Eqiv.]

Fossil Polymer has weakness and strength.

Biobased polymer has weakness and strength.

Acidification Potential (AP) [kg SO2-Eqiv.]

-50% Photooxidant Creation Potential (POCP) [kg C2H4-Eqiv.]

-100%

Renewable

Land use

resource

[m / kg ethylene]

Corn (US)

4,91

Wheat grains (EU)

6,31

Sugar cane (BR)

3,05

Sugar beet (EU)

3,48

2

- 246%

-150%

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1. PE DNA + Portfolio 2. Sources, options, drivers 3. LCA as the common approach to Sustainability 4. Example plastics vs. bio-plastic 5. Conclusions

The environmental profile of plastics over the supply chain according to LCA - ISO 14040

Some conclusions concerning the example of bioplastics

crop/ha significant and varying agriculture important impacts due to fertilizer, pesticides, burning CO2 intake driver of positive CO2 balance sugar cane route autarkic (no net fossil energy needed), but sugar cane burning driver for impacts conversion rates crop/EtOH significant and varying and waste water in sugar cane processing important EtOH by-product use and quality (e.g. feed or energy) transport sugar beets show significant influence bio-ethylene from sugar cane lowest land use or renewable options land use of fossil ethylene quasi irrelevant vs. bio routes no full life cycle, to be interpreted with the necessary degree of knowhow, before they are used and communicated further. ďƒ 17.10.2012

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Critical success factors at users Feedback from LC professionals

Data availability and selection in-scope, in-time, in-quality; guidance towards suitable data

“Industry-borne data” real supply chains, inter-sectoral use correct technology for individual branches

Region specific data background systems local process technology

Flexibility of application Useful to address more then single topics No isolated sector solutions – common solutions

Individual modification, adaption and extension

Source: gondreauonline.wordpress.com/

local situation (own data, parameterized data) Individual data on demand

Continuity, support, validation and update frequency Cost of database << Cost for work time to set-up and maintain own data

Looking on 20 years successful LCM in many companies….

LCM is not rocket science !

It is a… … structured approach within ISO procedures … using tools and industry-borne data … of realistic supply chains and specific technology … to represent reality … to enable critical business decisions

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Sustainability is not an Optionâ&#x20AC;Ś.

â&#x20AC;Ś.it is Critical Success Factor and Business Reality

Software

.

Knowhow

right direction towards sustainability

Data

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PE INTERNATIONAL PE INTERNATIONAL helps deliver a comprehensive end-to-end approach to Sustainability Performance

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