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Assessment Tools at Company Level Hamburg, June 14th 2002 By Tom Feijtel, PhD Associate Director, Product Safety Procter & Gamble 1 Outline CONTEXT – P&G R&D Business Decision-making Environmental Management Framework Sound Management of Chemicals/Products Substitution ? Tools and Illustration Conclusions Procter & Gamble Global consumer goods company Sales of > $40 billion/yr Operates in over 140 countries More than 300 brands Laundry and cleaning products Personal care & beauty care products Pampers, Tissue Towels Pharmaceuticals Food and petfood Over 120 manufacturing sites worldwide STATEMENT OF PURPOSE: “WE WILL PROVIDE PRODUCTS OF SUPERIOR QUALITY AND VALUE THAT IMPROVE THE LIVES OF THE WORLD’S CONSUMERS” In practical terms… The integration of : Economic Development Social Responsibility Environmental Protection Improving the Quality of Life…. Sustainability …………… An operational definition “Sustainable development is a very simple idea. It’s about ensuring a better quality of life for everyone, now and for generations to come.” Department of the Environment, Transport and the Regions, London, UK, February 1998 R&D Business Decision-making Customer Consumers Consumer Test Organizations Addressing Societal Concerns Market Research Consumer Tests LCI data R&D-Business Decision Human & Env RA Efficient Resource and Waste Management Performance Cost Supply Processing Competition Compliance and Risk Assessment : - Production & manufacturing compliance - Chemical classification/labeling - Chemical testing & registration - Risk Assessment - etc.. Bench Marking Performance/Value AN ENVIRONMENTAL MANAGEMENT FRAMEWORK Recognizes Four Key Elements: Human and Environmental Safety Regulatory Compliance Efficient Resource Use and Waste Management Consideration of Social Concerns R e g u la to ry C o m p lia n c e S a fe ty • • • • • • H um an H ealth R isk A ssessm ent • E cological R isk A ssessm ent M a n u fa c tu rin g s ite m g m t.. s y s te m s a u d itin g M a n u fa c tu rin g s ite w a s te s re p o rtin g M a te ria l c o n s u m p tio n re p o rtin g N e w c h e m ic a ls te s tin g a n d re g is tra tio n P ro d u c t & p a c k a g in g c la s s ific a tio n & la b e llin g O B J E C T IV E • • • • • • • • E c o n o m ic a lly (a n d te c h n ic a lly ) F e a s ib le , S o c ia lly a c c e p ta b le , E n v iro n m e n ta l M a n a g e m e n t to w a rd s S u s ta in a b ility E conom ic analysis Product L C I E co-design D isposal com pany auditing M aterial consum ption m onitoring and reduction M a n u fa c tu rin g s ite m g m t.. s y s te m s a u d itin g M a n u fa c tu rin g s ite e n v iro n m e n ta l auditing A uditing m ajor & new supplier s • U n d e rs ta n d & a n tic ip a te . • In te ra c t R e s o u rc e U s e a n d W a s te M a n a g e m e n t A d d re s s in g S o c ia l C o n c e rn s D D ata a ta O rg a n is a tio n D E C IS IO N M A K IN G Environmental Management - an overall framework Goal: Environmentally and Economically Sustainable Management 1. Human and Environment al Safety 2. Regulatory Compliance 3. Efficient Resource use and waste management Human health Risk Assessment (occupational and consumer exposure Manufacturing site compliance auditing Manufacturing site wastes and energy consumption, monitoring and reduction Elements: Tools: Manufacturing site waste reporting (e.g. TRI) Material consumption reporting Environmental Risk Assessment at all ‘life’-stages of the chemical (i.e. production, formulation, use and disposal) New Chemical testing and registration Material consumption monitoring and reduction Supplier auditing Product LCI/LCA Product and packaging classification and labeling Eco-design Economic Analysis 4. Addressing societal concerns (i.e. understand & respond) Understand: -Opinion surveys -Consumer and market research -Networking Respond: -public presentations and publications -Scientific and industry working groups -Reporting -Co-operation with other stakeholders to find solutions Air Emissions Solid Waste Substitution ? What, why, How ? Aqueous Emissions SOUND MANAGEMENT OF CHEMICALS S U S T A I N A B I L I T Y P R O D U C T ENVIRONMENTAL RISK ASSESSMENT PRODUCT ACCEPTABILITY (e.g. LCA, Cost-Benefit) PRODUCT Performance (e.g. consumer/product Score/testing) HUMAN RISK ASSESSMENT SOUND MANAGEMENT OF PRODUCTS D E V E L O P M E N T TOOL BOX ? Risk Assessment Lifecycle Assessment Risk Management Risk Communication Cost-benefit …and many other …. Improving the Quality of Life…. RISK ASSESSMENT IS AN ESSENTIAL BUSINESS TOOL IN: The Development of New Technologies, Product Ingredients and Manufacturing Processes Industrial Site and Emissions Evaluations Registrations and Discharge Permits Natural Resource Damage Assessments Precautionary and Environmental Labeling A Hazard - Risk Continuum (Adapted from Swanson and Socha 1997) Hazard Toxicity + PhysicalChemical Properties Ranking and Scoring Toxicity + PhysicalChemical Properties + Production/ Release Toxicity + Fate and Transport Model Generic Risk Assessment Amount and Specificity of Data Required Risk Endpoint-specific Site-specific Risk Assessment Illustration of where the tools may fit Chemical Use/ Avoidance Priority list (e.g. WFD) CMRs POPs COMMPS Prioritization/ Screening for Further Assessment Safe/Unsafe Handling, Production & Use EURAM MSDS Labels Hazard Communication Tools Hazard Classification & Labelling Chemical Ranking & Scoring Tools Risk Assessment Risk Assessment RISK Management How to think about substitution ? Several basic ways to do this: Reduce the Hazards Reduce the Exposure by the way a product is designed (e.g., less of the same substance, managing availability, or fate/biodegradability or a combination of both or innovate, substitute, …. Ingredient x : Safety success criteria Safety programme: Fate profile significantly better than substitute Effect profile not significantly different than substitute RQ in all compartments < 1 R&D and Business Realities …. Performance/cost/…. Relative cost Reference $$ Sub-1 $$$$ Sub-2 $$$ Sub-3 $$ Sub-4 $ Specs Performance Env Safety Need to account for all legs of the stool Since it may not be actionable … RISK Management How to think about substitution ? Other example: mass efficiency use a 10X better performing chemical twice as toxic as the one it replaces risk profile would be 5X better It also (probably) has a significant lifecycle benefit, as much less materials/energy will be used to make it, per unit of performance Maybe cheaper as well…. THE HAZARDS OF “HAZARD-BASED” substitution Detaches “Dose” from “Risk” Is Easily Misperceived by the Public as Synonymous with “Risk” – based action Does not encompass holistic human and environmental risks Does not include entire life-cycle and other ‘potential’ impacts IP A /L C A L ife C y c le A ssessm ent Life Cycle Analysis of product/service = Accounting of all energy and raw material consumption (inputs) and associated environmental emissions (outputs) for the whole life cycle of a product or service S u p p ly M a n u f a c t u r in g U se D is p o s a l IP A /L C A L ife C y c le A ssessm ent LCA is a process that (ISO) 1/ Evaluates the environmental burdens associated with a product, process, or activity by identifying and quantifying energy and materials used and wastes released to the environment. 2/ Assesses the potential impact of the energy and material flows on the environment, 3/ Identifies and evaluates opportunities for environmental improvements. What does LCA look at ? Resource use efficiency: - Energy - Water - Land Impact categories: - CO2 emission/Global warming - Smog/Ozone formation - Ozone depletion - Acidification - Eutrophication (N/P) - Human health - Ecotoxicity Risk Assessment vs LCA Life cycle assessment (LCA) LCA Env. Risk assessment (ERA) ERA Environment LCA profile, report Comparative Voluntary Clearance Absolute Compulsory Evolution within the regular powder category since 1988 excluding the use stage R eco d o se 120% P h o to ch em ical sm o g 100% P ack ag in g /w ash 80% 60% O zo n e d ep letio n 40% E n erg y 20% R eg u lar p o w d er 1 9 8 8 0% R eg u lar p o w d er 2 0 0 1 C lim ate ch an g e S o lid w aste E u tro p h icatio n A cid ificatio n A q u atic to x icity LCA vs Risk Assessment ? RA and LCA are complementary tools, not mutually exclusive Decision for environmental improvement and sustainable development must be based on the outcome of variety of tools There is not such thing as a simple answer CONCLUSIONS BUSINESS REALITIES PLAY A ROLE IN SOUND CHEMICAL AND PRODUCT MANAGEMENT 1. All Social Activities Carry Environmental Pressures and Efforts are Needed to Identify the Extent and Severity of this potential Impact 2. Technological Innovation is Essential to Human and Environmental Quality Improvement and Business Success 3. Only Products/Services Offering Competitive Performance and Value Survive to Deliver Environmental Benefits