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How to Assess the Sustainability
of Products?




C. Mock-Knoblauch, BASF SE
28.9.2009
Sustainable Development is based on
three Pill
th    Pillars

                     How to measure the
       Society       sustainability performance
                     of a good or service?
                           holistic
       Ecology             scientific, objective
                           cost effective

       Economy             decision oriented

                 => BASF’s eco-efficiency analysis
Life Cycle Assessment (LCA):
From cradle to grave


                                    Output

                       Production
                       P d ti                    Use
                                                 U      Disposal
                                                        Di     l
                                      Products



                intermediates                            Landfill
Extraction f
E t ti of
raw materials




                                                       Incineration
           Energy production


                                     Input
Sustainability assessment
of Biodiesel
 f Bi di   l

State f th
St t of the art:
              t
 Although biodiesel is made from renewable raw materials, the environmental
  advantages are small
         g
 The production of biodiesel is more expensive than that of conventional fossil
  diesel (excl. taxes and subsidies)
 However, biodiesel production creates jobs in the agriculture sector.


      customer benefit                         alternatives


       Use of a conventional                •RME (biodiesel)
       diesel car
       (driving distance
       200.000 km) )
                                            •conventional diesel
Weighting and aggregation of
environmental categories
   i       t l t     i

   Energy use      Resource cons.       Land use

       20%              20%              10%




  Risk potential   Toxicity potential   Emissions
      10%                20%              20%
Ecological Fingerprint


                                                  energy consumption
                                                      1,00



                                                      0,50

Use of a                area use                                                   emissions

conventional
                                                      0,00
diesel car
(driving
distance
200.000 km)

                                   raw material                            eco-toxicity
                                   consumption                             potential

                                                   biodiesel
                                                   bi di   l      diesel
                                                                  di   l
               1   worst alternative
Fuel Production Costs
(Excluding T
(E l di Taxes)  )



             0,900

                                               Verteilungskosten
                                                Distribution
             0,700
                                               fixe Fertigungskosten
                                                 Fix production costs

             0,500                             Gutschrift Glycerin
                                                Credit glycerine
   €/Liter




                                                Transesterif. costs
                                               Umesterungskosten
             0,300                              Credit rape grist
                                               Gutschrift Rapsschrot
                                                Rape oil production
                                               Rapsölgewinnung
             0,100
                                                Fert. & crop protection
                                               Düngung +PSM
                                                Soil Working
                                               Bodenbearbeitung
             -0,100
                                                Crude costs
                                               Rohölkosten
             -0,300
                      Diesel   Biodiesel   Assumption: 55 US$/barrel
Eco-Efficiency Portfolio

Assumption: 55 US$/barrel / 92 US$/barrel

                                                           0,2



                                                 alized)
                                                                                              High eco-efficiency




                                       pact (norma
                                                                                                                      • Eco-efficiency of
                                                                                                                      biodiesel compared to
                                                                                                                      diesel is strongly
                             nmental imp



 Use of a                                                  1,0                                                        dependent on oil price

 conventional                                                                                                         •The Break Even for
 diesel car                                                                                                           biodiesel to have the
                       Environ




                                                                                                                      same eco-efficiency as
                                                                                                                                   ffi i
 (driving                                                                                                             diesel is at an oil price
 distance                                                                                                             of approximately 85
 200.000 km)                                                       Low eco-efficiency
                                                                                                                      US$/barrel
                                                           1,8
                                                           18
                                                                 1,8                    1,0                     0,2
                                                                                Costs (normalized)

                                                                       biodiesel                  diesel
Eco-Efficiency Analysis
Standard Diaper versus Fl ff Reduced
St d d Di              Fluff R d   d
Diaper
                    The market driven trend within the diaper industry is towards
                    thinner, fluff reduced diapers
                    ... what impact does this have on the overall sustainability?

                                Full eco-efficiency analysis                             Only Carbon Dioxide (Model)
                                0,8
                                                                                                                  0,8




                                                                                                        alized)
                        orm.)
        mental impact (no




                                                                                         Environme (norma
                                                                  standard diaper
                                                                  fluff reduced diaper

                                1,0                                                                               1,0




                                                                                                 ent
 environm




                                1,2                                                                               1,2
                                      1,2       1,0         0,8                                                         1,2          1,0           0,8
                                            costs (norm.)
                                                                                                                              Costs (normalized)

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Sps Conference Essen 2009 Basf Mock Knoblauch

  • 1. How to Assess the Sustainability of Products? C. Mock-Knoblauch, BASF SE 28.9.2009
  • 2. Sustainable Development is based on three Pill th Pillars How to measure the Society sustainability performance of a good or service?  holistic Ecology  scientific, objective  cost effective Economy  decision oriented => BASF’s eco-efficiency analysis
  • 3. Life Cycle Assessment (LCA): From cradle to grave Output Production P d ti Use U Disposal Di l Products intermediates Landfill Extraction f E t ti of raw materials Incineration Energy production Input
  • 4. Sustainability assessment of Biodiesel f Bi di l State f th St t of the art: t  Although biodiesel is made from renewable raw materials, the environmental advantages are small g  The production of biodiesel is more expensive than that of conventional fossil diesel (excl. taxes and subsidies)  However, biodiesel production creates jobs in the agriculture sector. customer benefit alternatives Use of a conventional •RME (biodiesel) diesel car (driving distance 200.000 km) ) •conventional diesel
  • 5. Weighting and aggregation of environmental categories i t l t i Energy use Resource cons. Land use 20% 20% 10% Risk potential Toxicity potential Emissions 10% 20% 20%
  • 6. Ecological Fingerprint energy consumption 1,00 0,50 Use of a area use emissions conventional 0,00 diesel car (driving distance 200.000 km) raw material eco-toxicity consumption potential biodiesel bi di l diesel di l 1 worst alternative
  • 7. Fuel Production Costs (Excluding T (E l di Taxes) ) 0,900 Verteilungskosten Distribution 0,700 fixe Fertigungskosten Fix production costs 0,500 Gutschrift Glycerin Credit glycerine €/Liter Transesterif. costs Umesterungskosten 0,300 Credit rape grist Gutschrift Rapsschrot Rape oil production Rapsölgewinnung 0,100 Fert. & crop protection Düngung +PSM Soil Working Bodenbearbeitung -0,100 Crude costs Rohölkosten -0,300 Diesel Biodiesel Assumption: 55 US$/barrel
  • 8. Eco-Efficiency Portfolio Assumption: 55 US$/barrel / 92 US$/barrel 0,2 alized) High eco-efficiency pact (norma • Eco-efficiency of biodiesel compared to diesel is strongly nmental imp Use of a 1,0 dependent on oil price conventional •The Break Even for diesel car biodiesel to have the Environ same eco-efficiency as ffi i (driving diesel is at an oil price distance of approximately 85 200.000 km) Low eco-efficiency US$/barrel 1,8 18 1,8 1,0 0,2 Costs (normalized) biodiesel diesel
  • 9. Eco-Efficiency Analysis Standard Diaper versus Fl ff Reduced St d d Di Fluff R d d Diaper The market driven trend within the diaper industry is towards thinner, fluff reduced diapers ... what impact does this have on the overall sustainability? Full eco-efficiency analysis Only Carbon Dioxide (Model) 0,8 0,8 alized) orm.) mental impact (no Environme (norma standard diaper fluff reduced diaper 1,0 1,0 ent environm 1,2 1,2 1,2 1,0 0,8 1,2 1,0 0,8 costs (norm.) Costs (normalized)