D1.1 Literature Review “Approaches to Zero-Waste - TIMEWARP IT ...

DELIVERABLE 1.1
LITERATURE REVIEW “APPROACHES TO
ZERO WASTE”
Grant Agreement number: 226752
Project acronym: ZEROWIN
Project title: Towards Zero Waste in Industrial Networks
FUNDING Scheme: Collaborative project
Delivery date: May 2010
Deliverable number: 1.1
Version number: 2
Status: DRAFT
Commission approval date:
Work package number: 1
Lead participant: University of Southampton
Nature: Lit. Review of approaches potentially contributing to ZeroWIN
Dissemination level: Internal to project
Editors: Professor Ian Williams and Dr Tony Curran, School of Civil
Engineering and the Environment, University of Southampton
Tel: +44 2380 594653
E-mail: tcu@soton.ac.uk
Project co-ordinator: Dr Bernd Kopacek,
Austrian Society for Systems Engineering and Automation
Tel: +43-1-7890612-43
Fax: +43-1-7890612-77
E-mail: bernd.kopacek@sat-research.at
Project website: www.zerowin.eu
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Note on document version number
Version 2 (V2) of this Deliverable (1.1) replaces the first version which was submitted in September
2009. Version 2 reflects the changes agreed on by all ZeroWIN Partners at the General Meeting in
Bilbao during November 2009, and incorporates the amendments required by the EC Project Officer.
The ZeroWIN Literature Review V2 is inline with the vision for ZeroWIN which is the subject of
subsequent Deliverables 1.2 and 1.3 in 2010.
Summary of changes from V1:
• Seven sections have been removed (those determined not required for ZeroWIN);
• Several sections have been reworked and improved;
• The summary, discussion and conclusions sections have been expanded;
• Spelling and grammatical errors have been eliminated; and
• The consistency of the document’s formatting has been improved.
List of contributing authors
BIOIS: Mathieu Hestin, Shailendra Mudgal, Vincent Portugal
BOKU: Gudrun Obersteiner, Silvia Scherhaufer, Peter Beigl, Andreas Pertl
GAIKER: Leire Barruetabeña, Oscar Salas, Clara Delgado
HP: Richard Peagam
Insead: Renato Orsato, Luk Van Wassenhove
SAT: Tim Teichert, Daniela Pokorny, Bernd Kopacek
TUB: Frank Becker, Karsten Schischke
UCCA: Tim Woolman
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TABLE OF CONTENTS
LIST OF CONTRIBUTING AUTHORS................................................................................. 2
TABLE OF CONTENTS....................................................................................................... 3
PUBLISHABLE SUMMARY................................................................................................. 5
SHORT DEFINITIONS OF KEY TERMS.............................................................................. 5
1. INTRODUCTION............................................................................................................. 9
1.1. Zero waste concept – from waste management to waste elimination………………9
1.2. Concept of waste as a resource……………………………………………………….10
1.3. Emerging trends in support of zero waste……………………………………………11
1.4. Responsibilities for zero waste………………………………………………………...12
1.5. Pathway to zero waste………………………………………………………………….12
1.6. Legislative drivers……………………………………………………………………….13
1.7. Economic drivers………………………………………………………………………..14
1.8. Incentives………………………………………………………………………………...15
1.9. Barriers…………………………………………………………………………………...15
1.10. Implementation of the Common Vision to the ZeroWIN Project…………………...15
1.11. Summary…………………………………………………………………………………16
2. LITERATURE REVIEW ................................................................................................ 17
2.1 BROAD APPROACHES TO SUSTAINABLE INDUSTRIAL DEVELOPMENT….17
2.1.1 Zero waste………………………………………………………………………..17
2.1.2 Industrial ecology………………………………………………………………...27
2.1.3 Eco-design………………………………………………………………………..30
2.1.3.1 Prolongation of product use (upgrade, re-use, refurbishment)…...31
2.1.3.2 De-materialisation..........................................................................33
2.1.3.3 Green chemistry……………………………………………………….35
2.1.4 Cleaner production………………………………………………………………56
2.1.5 Pollution prevention……………………………………………………………...63
2.1.6 Zero emissions…………………………………………………………………...64
2.1.7 Natural Capitalism……………………………………………………………….66
2.2 METHODS AND TOOLS UNDERPINNING THE BROAD APPROACHES……...68
2.2.1 Eco-industrial parks (EIPs)……………………………………………………..68
2.2.2 Industrial symbiosis……………………………………………………………...76
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2.2.3 Product stewardship……………………………………………………………..79
2.2.3.1 Extended Producer Responsibility (EPR)…………………………...79
2.2.3.2 Individual Producer Responsibility (IPR)…………………………….79
2.2.4 Supply chain management (SCM)……………………………………………..84
2.2.4.1 Reverse logistics……………………………………………………….97
2.2.4.2 Remanufacturing……………………………………………………..103
2.2.5 Selling service rather than product…………………………………………...107
2.2.6 End of life management……………………………………………………….111
2.2.7 Eco-labelling…………………………………………………………………….119
2.3 QUANTIFICATION/ASSESSMENT/MONITORING TOOLS……………………...124
2.3.1 Life Cycle Assessment (LCA)…………………………………………………124
2.3.2 Carbon footprinting……………………………………………………………..146
2.3.3 Environmental Impact Assessment (EIA)……………………………………152
2.3.4 Environmental Management System (EMS)………………………………...156
2.3.5 Industrial metabolism…………………………………………………………..166
2.3.5.1 Material Flows Analysis (MFA)……………………………………...166
2.3.5.2 Energy Flows Analysis (EFA)……………………………………….167
2.3.6 Social networks…………………………………………………………………170
2.4 OTHER GENERAL PRINCIPLES……………………………………………………172
2.4.1 Precautionary principle………………………………………………………...172
2.4.2 Proximity principle……………………………………………………………...175
2.4.3 Social enterprises………………………………………………………………176
2.5 SUMMARY……………………………………………………………………………...179
3. GENERAL DISCUSSION ........................................................................................... 179
4. CONCLUSIONS.......................................................................................................... 181
5. LIST OF FIGURES...................................................................................................... 182
6. LIST OF TABLES ....................................................................................................... 182
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PUBLISHABLE SUMMARY
A summary of this review is available for distribution freely, from the ZeroWIN website or the project
co-ordinator (see page 1 for contact details), or from any project partner on request.
SHORT DEFINITIONS OF KEY TERMS
Carbon footprinting
The total amount of greenhouse gas (GHG) emissions for which an organisation is responsible
(Carbon Trust, 2006).
This definition encompasses direct and indirect emissions. Therefore, it goes beyond a simple
greenhouse gas inventory confined to the organisation boundaries, and looks into the whole supply
chain and the products life cycle.
Cleaner production
The conceptual and procedural approach to production that demands that all phases of the lifecycle
of a product or of a process should be addressed with the objective of prevention or the
minimisation of short and long-term risks to humans and the environment (UNEP, 1989).
Eco-design/Design for the Environment (DfE)
A systematic approach which takes into account environmental aspects in the design and
development process with the aim to reduce adverse environmental impacts (IEC, 2009).
De-materialisation
The reduction of the amount of materials or the ‘embedded energy’ of the industrial outputs,
considered as final products and waste/by-products.
N.B. This concept is achieved through the implementation of other concepts/strategies e.g. ecodesign,
industrial symbiosis and waste prevention.
Eco-industrial park (also known as Resource Recovery parks)
A community of manufacturing and service businesses located together and seeking enhanced
environmental, economic, and social performance through collaboration in managing environmental
and resource issues including energy, water, and materials (Lowe, 2001, modified).
Eco-labelling
An eco-label is a label which identifies overall environmental preference of a product (i.e. good or
service) within a product category based on life cycle considerations.
End of life management
The management of all activities required, at the end of life phase of a product.
Environmental Impact Assessment (EIA)
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The EIA procedure ensures that environmental consequences of projects are identified and
assessed, and recommendations of appropriate mitigating measures are made, before
authorisation for their development is given (EU EIA Directive, modified).
Environmental Management System (EMS)
A management system that plans, schedules, implements and monitors those activities aimed at
improving environmental performance.
Green chemistry
The design, development, and implementation of chemical products and processes to reduce or
eliminate the use and generation of substances hazardous to human health and the environment
(Anastas and Warner, 1998).
Industrial ecology
The study of the flows of materials and energy in industrial and consumer activities, of the effect of
these flows on the environment, and of the influence of economic, political, regulatory and social
factors on the flow, use and transformation of resources (White, 1994).
Industrial metabolism
The whole integrated collection of physical processes that convert raw materials and energy, plus
labour, into finished products and wastes in a (more or less) steady-state condition (Ayres and
Simonis, 1994).
Industrial symbiosis
Industrial symbiosis engages traditionally separate industries in a collective approach to competitive
advantage involving physical exchanges of materials, energy, water and/or by-products. The keys
to industrial symbiosis are collaboration and the synergistic possibilities offered by geographic
proximity (Chertow, 2004).
Life Cycle Assessment (LCA)
A method for detecting environmental relevance of products, processes or services in their life cycle
(ISO 14040).
Natural Capitalism
Natural Capitalism is a business model based on responsible, sustainable practice while increasing
profits and gaining competitive advantage. It is based on four principles: increasing resource
productivity, eliminating waste, selling service rather than product and reinvestment in natural
capital.
Pollution prevention (P2)
Pollution prevention (P2) is reducing or eliminating waste at the source by modifying production
processes, promoting the use of non-toxic or less-toxic substances, implementing conservation
techniques, and re-using materials rather than putting them into the waste stream (EPA, 2009).
Precautionary principle
In order to protect the environment, human, animal or plant health, the precautionary approach shall
be widely applied by States according to their capabilities. Where there are threats of serious or
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irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing
cost-effective measures to prevent environmental or human/animal/plant health degradation (UN,
1992, modified to include categories listed in COM(2000)).
Product stewardship
Extended Producer Responsibility (EPR)
EPR is a policy principle to promote life cycle environmental improvements of product
systems by extending the responsibility of the producers beyond the production phase and
particularly to the end of life management of products (Lindhqvist 2000, modified).
Individual Producer Responsibility (IPR)
IPR is an operational approach that each producer takes physical and/or financial
responsibility at least in the post-consumer stage for his/her own products (Orsato, 2009).
Prolongation of product use (upgrade, re-use, refurbishment)
Re-use, refurbishment and upgrade to extend the life-span of a product or its components.
Proximity principle
The principle that waste should be managed as near as practicable to its place of origin.
Recycling
The reprocessing in a production process of the waste materials for the original purpose or for other
purposes including organic recycling but excluding energy recovery.
Remanufacturing
The process of returning a used product to at least OEM original performance specification from the
customers’ perspective and giving the resultant product a warranty that is at least equal to that of a
newly manufactured equivalent (Ijomah et al., 1998). [OEM is Original Equipment Manufacturer]
Re-use
An action or operation by which components or whole products are used for the same purpose for
which they were conceived.
Reverse logistics
All activity associated with a product/service after the point of sale (Reverse Logistics Association,
2009).
Selling service rather than product
An alternative to the traditional basis of economic exchange, tangible products, whereby instead a
level of service is provided. The aim is to maintain or increase value whilst reducing material and
waste flows.
Social enterprise
A social enterprise is a business with primarily social objectives whose surpluses are principally
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einvested for that purpose in the business or in the community, rather than being driven by the
need to maximise profit for shareholders and owners (Department of Trade & Industry, UK, 2002).
Social entrepreneurship
Social entrepreneurship seeks to solve social problems using entrepreneurial principles, and
measures performance in social impact. Social or environmental benefits are the main aims of
social entrepreneurship.
Social networks
A network theory / sociological term concerning social relationships about nodes and ties. Nodes
are the individual actors within the networks, ties are the relationships between these actors.
Network science is a scientific discipline that examines the interconnections among diverse physical
or engineered networks, information networks, biological networks, cognitive and semantic
networks, and social networks. For ZeroWIN the social interaction in industrial networks is the
focus.
Supply chain management (SCM)
Supply chain management (incorporating reverse processes): “encompasses the planning and
management of all activities involved in sourcing and procurement, conversion, return, exchange,
repair/refurbishment, remarketing, and disposition of products, and all logistics management
activities. Importantly, it also includes coordination and collaboration with channel partners, which
can be suppliers, intermediaries, third-party service providers, and customers (combination of
Aberdeen Group, 2006 and CSCMP, 2006).
Waste
Any substance or object which the holder intends or is required to discard.
Waste prevention
Avoidance of waste, including reduction at source of the quantity or toxicity of waste. Extending
product life span is also a form of waste prevention.
Waste recovery
Re-use, recycling or recovery of energy and other resources from waste.
Zero emissions
The zero emissions concept aims to identify the approaches and technologies required to create a
new type of industrial system that will reduce waste and harmful emissions to zero whilst at the
same time increasing competitiveness (Kuehr, 2007, modified).
Zero waste
Zero waste is a goal that is both pragmatic and visionary, to guide people to emulate sustainable
natural cycles, where all discarded materials are resources for others to use. Zero waste means
designing and managing products and processes to reduce the volume and toxicity of waste and
materials, conserve and recover all resources, and not burn or bury them. Implementing zero waste
will eliminate all discharges to land, water or air that may be a threat to planetary, human, animal or
plant health. In industry the goal of zero waste will be accomplished with the aid of industrial
symbiosis and new technologies.
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1. INTRODUCTION
This report refers to ZeroWIN Work Package 1, Task 1.1, Deliverable 1.1: Literature Review. The
main aim of this Work Package is to identify a commonly agreed overall systems approach for the
ZeroWIN project. The specific objectives of this task are to:
• Develop a system view of all activities, including finding the interdependencies; and
• Develop a commonly defined “zero waste” vision.
Deliverable 1.1 provides a summary of the concepts, tools and methodologies that will underpin the
whole project and will provide a consortium-agreed firm foundation for all the Work Packages,
particularly:
• Work Package 2: Tasks 2.1 and 2.2;
• Work Package 3: Tasks 3.1.1, 3.2.1, 3.2.4, 3.2.6 and 3.3;
• Work Package 4: Task 4.1;
• Work Package 5: Tasks 5.1 and 5.3;
• Work Package 6: Tasks 6A.3.1A-C;
• Work Package 7: Tasks 7.1 and 7.2;
• Work Package 8: Tasks 8.1, 8.3 and 8.4; and
• Work Package 9: Tasks 9.1 and 9.2.
1.1 Zero waste concept – from waste management to waste elimination
Zero waste is a unifying concept for a range of measures aimed at eliminating waste and allowing
us to challenge old ways of thinking. Aiming for zero waste will mean rethinking waste as a potential
resource with value to be realised, rather than as a problem to be dealt with, usually by burial in
landfill sites or incineration without energy recovery. Zero waste will not happen overnight; zero
waste to landfill in Europe can be achieved over a 10-30 year timescale, although a co-ordinated
and concerted effort focused on waste prevention, minimisation and re-use will be necessary. It is
important to recognise that zero waste is a target to be strived for, not an absolute, and it is possible
that landfill may ultimately be the best option for a very small number of wastes.
Zero waste is a whole system approach that aims to eliminate rather than “manage” waste. As well
as encouraging waste diversion from landfill and incineration, it is a guiding design philosophy for
eliminating waste at source and at all points down the supply chain. It shifts from the current oneway
linear resource use and disposal culture to a ‘closed-loop’ circular system modelled on Nature’s
successful strategies.
Striving for zero waste requires a holistic approach, targeting:
• Zero waste of resources: Energy, Materials, Human;
• Zero emissions: Air, Soil, Water;
• Zero waste in activities: Administration, Production;
• Zero waste in product life: Transportation, Use, End of Life; and
• Zero use of toxics: Processes and Products.
The guiding principles for zero waste in industrial networks are:
• Commitment to the triple bottom line: social, environmental and economic performance
standards;
• Use of the Precautionary Principle;
• Minimum waste to landfill or incineration;
• Assuming responsibility for the take back of products and packaging;
• Buying re-used, recycled and composted products;
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• Prevention of pollution and reduction of waste;
• Highest and best use of resources;
• Use of economic incentives for customers, workers and suppliers;
• Products or services sold are not wasteful or toxic; and
• Use of non-toxic production, re-use and recycling processes.
For a more detailed description of zero waste, see Section 2.1.1.
1.2 Concept of waste as a resource
Zero emissions/waste represents a shift from the traditional industrial model in which wastes are
considered the norm, to integrated systems in which everything has its use. It advocates an
industrial transformation whereby businesses emulate the sustainable cycles found in nature and
where society minimises the load it imposes on the natural resource base and learns to do more
with what the earth produces (see Figure 1).
The zero waste concept envisions all industrial inputs being used in final products or converted into
value-added inputs for other industries or processes. In this way, industries will be reorganised into
clusters such that each industry's wastes / by-products are fully matched with the input
requirements of another industry, and the integrated whole produces no waste. From an
environmental perspective, the elimination of waste represents the ultimate solution to pollution
problems that threaten ecosystems at global, national and local levels. In addition, full use of raw
materials, accompanied by a shift towards renewable sources, means that utilisation of the Earth's
resources can be brought back to sustainable levels.
For business, zero waste can mean greater competitiveness and represents a continuation of its
inevitable drive towards efficiency. First came productivity of labour and capital, and now comes the
productivity of raw materials - producing more from less. Zero waste can therefore be understood
as a new standard of efficiency and integration.
It is already clear in the initial zero waste pilots around the world that a successful integration of the
qualitative dimensions of political and social sciences into the quantitative analysis of material flows
is mandatory for the success of the zero emissions concept. Protection principles, behavioural
patterns, and societal norms are also important for the realisation of waste. Moreover, a balanced
communication and cooperation between all actors responsible for the material flows is necessary
to come to the envisaged eco-structuring.
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Sorting
Processing
Collection
Marketing
Cyclical flow
Source
separation
Figure 1. Linear and cyclical resource flows.
1.3 Emerging trends in support of zero waste
Most of the debate and action on zero waste has to date focused on Municipal and Community
initiatives rather than business/industrial applications. Although in some ways this distances their
relevance to the ZeroWIN project, in this embryonic discipline these examples can provide the
rationale and philosophical arguments to underpin its wider use.
A key driver for zero waste is recent waste policy and legislation at the EU level that has increased
its emphasis on preventive approaches. This is indicated in the publication of its thematic strategy
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Design
Raw materials
Manufacture
Consumption
Landfill disposal
Linear flow

on the prevention and recycling of waste, which addresses waste prevention as one of the priority
issues. In addition, some countries and regions have progressed to the extent of writing a vision
and setting firm targets for zero waste (for more details, see Section 2.1.1).
1.4 Responsibilities for zero waste
The responsibility for zero waste lies with multiple stakeholders (adapted from Snow and Dickinson,
2000 – see section 2.1.1):
• The European Union and national governments will need to take a leadership role,
develop legislation to support the zero waste concept and provide coordination of key
activities.
• Regional authorities will have a major planning role to fulfil, including planning for new
infrastructure and plant in good time to enable agreed targets to be met.
• Local authorities will guard community ownership of the waste stream, implement
legislation and devise further measures which favour material and resource recovery over
disposal.
• Industrial Designers will design products that are: durable, repairable, easily disassembled
for recycling and made of materials that can easily be incorporated back into either nature or
into the industrial system, designed such that surplus material and by-products are easily
reintegrated or used in the same or other industrial processes and that any unavoidable
emissions to water or air are known, measurable and progressively eliminated.
• Manufacturers will invest in new design, creating products with minimal waste and
packaging and will adopt appropriate producer responsibility.
• Retailers will stock products that are recyclable and repairable, encourage their suppliers to
use minimal packaging, provide systems for consumers to recycle excess packaging, and
vigorously promote products that are environmentally sustainable.
• Secondary Materials Handlers will provide high quality services that out-compete waste
disposal services.
• The education sector, including schools and universities will teach zero waste principles
as part of their basic curriculum and have their own re-use/recycling systems and behaviour
change programmes in place.
• Consultants/Engineers.
• Third Sector Organisations will work with local authority partners and contract to educate
and promote local waste reduction and recycling schemes.
• The Householder will buy products that are durable, repairable and recyclable, participate in
local kerbside and recycling schemes and install recycling systems in workplaces.
1.5 Pathway to zero waste
There are three core principles that must all be applied to ensure success:
1. End cheap waste disposal;
2. Design waste out of the system; and
3. Engage industry/the EU and encourage mutualism/symbiosis.
The ZeroWIN consortium will focus on principle 2 in order to achieve the following scientific and
technical objectives:
1. Development and conceptual work on selected innovative technologies, which are
essential to overcome dedicated barriers for waste prevention;
2. Development of waste prevention methodologies and strategies;
3. Development of system tools (WP4 will involve an assessment of tools appropriate to
ZeroWIN and help apply them to industrial networks via the WP6’s case studies);
4. Development of a production model for zero waste entrepreneurship; and
5. Pilot Applications for the production model in Industrial Networks and real cases.
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1.6 Legislative drivers
At both a national and international level considerable efforts have been taken to institutionalise
waste minimisation and waste prevention via legal guidelines to enable effective waste prevention.
The Council Directive of 15th July 1975 on waste (75/442/EEC) by the Council of the European
Communities requested support for appropriate action for the reduction of quantities of certain
wastes. Based on this directive in the first Community Strategy for Waste Management
(SEC(89)934Final) the hierarchical system in waste management was established in 1989: the socalled
waste management hierarchy is a reference to an order of priority for the management of
waste in which:
• Avoidance of the production of waste;
• Minimisation of the production of waste;
• Re-use of waste;
• Recycling of waste;
• Recovery of energy and other resources from waste;
• Treatment of waste to reduce potentially degrading impacts; and
• Disposal of waste in an environmentally sound manner;
are pursued in order with, first, avoidance of the production of waste, and second, to the extent that
avoidance is not reasonably practicable, minimisation of the production of waste, and third, to the
extent that minimisation is not reasonably practicable, re-use of waste, etc.
This trend towards waste prevention, re-use and recycling has continued as exemplified in Figure 2.
ZeroWIN will support these legislative drivers and the following aims of the Thematic Strategy on
the prevention and recycling of waste (COM (2003) 301 final, COM (2005) 666 final):
• “Modernise the existing legal framework – i.e. to introduce life-cycle analysis in policymaking
and to clarify, simplify and streamline EU waste law.”
• “All phases in a resource’s life cycle need to be taken into account as there can be trade-offs
between different phases and measures adopted to reduce environmental impact in one
phase can increase the impact in another. Clearly, environmental policy needs to ensure
environmental impact is minimised throughout the entire life cycle of resources.”
• “To set minimum standards across the Community for recycling activities and recycled
materials so as to ensure a high level of environmental protection.”
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(Dir. 2008/98/EC)
Figure 2. Summary of legislative drivers for zero waste.
Work Package 8 specifically addresses and will report separately on legislative issues.
1.7 Economic drivers
Historically, economic factors have militated against waste prevention, re-use and recycling. The
monetary losses to business and industry via the costs of waste collection and disposal have not
been high or visible enough to make a difference and the environmental costs have often been
viewed as too difficult to take into account. However, this is changing; for example, businesses in
countries that employ a landfill tax escalator, which annually increases the cost of landfilling waste
(e.g. the UK), gradually become less viable and competitive over time. There is also a very clear
desire on an international level to give more responsibility to producers to design out waste rather
than simply dealing with it. In order to facilitate this shift, countries have explicitly shifted the cost of
dealing with waste consumer goods (e.g. electrical and electronic items) from municipalities to
producers, for instance by requiring producers to cover the costs of the collection and treatment of
the products they make. However, in the absence of legislation or incentives, it is likely that
producers will only substantially rethink product design when a producer’s responsibility for its
product’s impacts starts to have a significant financial impact.
Another economic driver for change is the possibility that environmentally damaging or hard-torecycle
products will be taxed. Such a tax might take the form of a product levy – a charge, or set of
charges, designed to shift behaviour from certain products towards better alternatives. The money
raised could be used to fund collection and recycling or the charge could be levied in such a way as
to encourage products with the best overall environmental performance.
Thus for regions, countries and the EU, the economic relevance of the ZeroWIN project is
associated with the significant contribution of the four sectors involved (automotive, construction,
EEE and photovoltaic) to wealth creation, investment, employment and conservation of resources.
For businesses, zero waste can mean greater competitiveness and represents a continuation of its
inevitable drive towards efficiency - first came productivity of labour and capital and now comes the
productivity of raw materials - producing more from less. The ZeroWIN project can be understood
as a new standard of efficiency and integration.
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1.8 Incentives
From an environmental perspective, the incentive of eliminating waste represents the ultimate
solution to pollution problems that threaten ecosystems at global, national and local levels. Full use
of raw materials, accompanied by a shift towards renewable sources, means that utilisation of the
Earth's resources can be brought back to sustainable levels.
Examples of incentives that could drive progress towards the elimination of waste include:
• Setting business recycling targets, probably on a sector-by-sector basis; and
• Using public procurement to drive better products. A simple, policy-driven way to ensure that
procurement would drive innovation would be for public institutions to adopt ‘waste neutral’
objectives i.e. balancing the amount of waste sent offsite with recycled materials purchased.
The ZeroWIN approach intends to demonstrate that industrial networks can be organised and
equipped to meet stringent environmental targets (decrease of at least 30% greenhouse gas
emissions, at least 70% of overall re-use and recycling of waste and a reduction of at least 75% of
fresh water utilisation).
1.9 Barriers
The barriers to zero waste are often hidden and may be unintended consequences of customary
behaviour intended to promote employment and progress e.g. government subsidies. Other barriers
are not necessarily obvious:
• The cost of waste is often hidden;
• Producers frequently do not take responsibility for the real costs associated with their
product or service, especially environmental costs; and
• Changing behaviour or practice to more sustainable systems requires overcoming inertia
and suspicion about new practices.
Task 1.2 will specifically address some of the barriers associated with approaches to zero waste.
1.10 Implementation of the Common Vision to the ZeroWIN Project
As already explained, zero waste is a “whole system” approach to redesigning resource flows to
minimise emissions and resource use, comprised of an underpinning philosophy, a clear vision, and
a call to action – all based on the notion that society can eliminate waste. However, this vision has
to be broken down into a tangible, joint understanding for all project partners, specifically the
industry partners and their activities need to put the vision into practice and deal with apparent
contradictory aspects of sustainability; this has never been attempted before, especially on such a
large and significant scale. This literature review provides a summary of the underpinning concepts,
tools and methodologies that will be used in order to define a common vision on zero waste
entrepreneurship and sustainable industry.
At the ZeroWIN kick-off meeting in Brussels (June 2009), the ZeroWIN Consortium agreed that the
second output from WP1 – the agreed common vision – would be delivered in January 2010. This
was to:
1. Allow all partners (and stakeholders) to read and fully digest the messages in the literature
review;
2. Enable and obtain agreement and common ownership of the i) broad systems approaches ii)
methodologies iii) quantification/assessment/monitoring tools iv) general principles;
3. Agree the system boundaries (implicit in the Call and bid document but we need to make
them explicit);
4. Decide which of 2 i-iii) we were going to apply to ZeroWIN;
5. Write up as formal ZeroWIN internal common vision (January 2010);
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6. Circulate to stakeholders in advance of the Vision Conference. The involvement of
stakeholders is central to the development of a successful and achievable vision. Thus the
task will incorporate both a feedback loop on the initial review document and a “Vision
Conference” (to polish and nuance the developed vision) where stakeholders from all the
industrial and business sectors involved in this project and from outside (e.g. Greenpeace
and other environmental NGOs, national and European branch organisations, several
involved departments of European Commission) will have an opportunity to input their views;
and
7. Present to stakeholders in the Vision Conference, discuss and agree on the final approach to
be pursued (July 2010).
Task 1.2 will build on this work to produce the position papers and case studies for the four different
sectors.
The key messages from the literature review have been distilled into the ZeroWIN industrial network
scenarios and the ZeroWIN concepts mind map (see Deliverable 1.2, ZeroWIN Vision Report),
which, together with the literature review, will be used to promote discussion on the scope,
boundaries, concepts, tools and methodologies that will comprise the commonly agreed overall
systems approach for the ZeroWIN project.
It is envisaged that the Vision Conference in July 2010 will include presentations from key Work
Package leaders outlining progress and the proposed vision, stakeholder workshops to discuss the
pros and cons of the ZeroWIN common vision (organised according to sector), feedback and
discussion sessions. It may be possible to get summary documents onto a website in advance of
the conference so that stakeholders who are unable to attend can provide feedback; this should
increase the feedback opportunities enormously as stakeholders who are unable to attend will still
be able to contribute.
1.11 Summary
In summary, this literature review will facilitate and develop an overall system view for the entire
project and will inform mitigation strategies (position papers) on e.g. how to overcome such conflicts
in the frame of the overarching vision. However, given the scale and complexity of this task, the
common vision document will need to be re-visited and amended as the project progresses.
16

2. LITERATURE REVIEW
In this chapter a review is presented of each of the concepts that has been selected by the
ZeroWIN consortium to be included in the ‘toolbox’ for use throughout the project. Where
possible a set template has been followed in order to:
• Ensure a thorough and consistent approach;
• Ensure the literature is critically reviewed specifically with regard to what it means for
and how it can inform the ZeroWIN project; and
• Enable the reader to quickly reach the specific information they seek.
This chapter ends with a summary of the review process, including how the selected
concepts were determined to be of use to ZeroWIN (Section 2.5).
2.1 BROAD APPROACHES TO SUSTAINABLE INDUSTRIAL DEVELOPMENT
This section sets out the vision and goals of particular approaches; their focus tends to be
strategic and conceptual rather than on practical application techniques.
2.1.1 Zero waste
Note that this section covers only the previous literature on zero waste. See Chapter 1 and the
ZeroWIN Project’s ‘Description of Work’ document (Version 5, 15.04.2009) for further information,
including how the zero waste concept will be integrated in to the ZeroWIN Project as a whole.
The zero waste concept is related to industrial ecology. Zero waste as a method for improving
industrial performance in a sustainable way is related to other management standards including
zero defects, zero inventory and zero accidents.
• What is zero waste?
Zero waste is a “whole system” approach to redesigning resource flows comprised of an
underpinning philosophy, a clear vision, and a call to action - all based on the notion that waste can
be eliminated (Snow and Dickinson, 2000). For industry zero waste represents a shift from the
traditional industrial model in which wastes are considered the norm, to integrated systems in which
everything has its use. Zero waste not only concerns eliminating solid waste disposal, but also
waste of energy, wastewater and emissions. Zero waste is better understood as a vision than an
absolute goal, where the aim is to eliminate all avoidable wastes. It is accepted that in some cases
the generation of an element of waste is unavoidable, and the laws of thermodynamics require that
some loss of heat/energy occurs in thermal processes.
What are relevant definitions?
Agreed by the Zero Waste International Alliance Planning Group in 2004:
“Zero waste is a goal that is both pragmatic and visionary, to guide people to emulate
sustainable natural cycles, where all discarded materials are resources for others to use. Zero
waste means designing and managing products and processes to reduce the volume and
toxicity of waste and materials, conserve and recover all resources, and not burn or bury them.
Implementing zero waste will eliminate all discharges to land, water or air that may be a threat
to planetary, human, animal or plant health.”
What are the key concepts?
Most of the debate and action on zero waste has to date focused on municipal and community
initiatives rather than business/industrial applications. Although in some ways this distances their
17

elevance to ZeroWIN, in this embryonic discipline these examples can provide the rationale and
philosophical arguments to underpin its wider use.
International leaders in sustainability are advocating zero waste as a way of creating economic
wealth and addressing a host of other social and environmental problems:
“Zero waste is an extraordinary concept that can lead society, business, and cities to
innovative breakthroughs that can save the environment, lives, and money. Through the lens
of zero waste, an entirely new relationship between humans and systems is envisaged, the
only one that can create more security and well being for people while reducing dramatically
our impact upon planet earth. The excitement is on two levels: it provides a broad and farreaching
vision, and yet it is practical and applicable today” (Paul Hawken, quoted in Snow and
Dickinson, 2000).
Waste prevention and material efficiency are important aspects of the zero waste concept. Waste
prevention is concerned with the top elements of the waste hierarchy – strict avoidance, reduction
at source and product re-use (Huhtinen, 2009). Material efficiency is a newer term which avoids the
word ‘waste’ and so old connotations of dirty, useless materials which already exist and must be
‘dealt with’ by means such as recycling or energy recovery. Material efficiency is arguably a better
term and environmental policy objective than waste prevention, since most of the environmental
benefits from waste prevention stem from the reduced need to produce materials (Ekvall, in
Huhtinen, 2009).
A recent study used interviews with experts in Denmark, Finland and Sweden to evaluate potential
policy instruments for waste prevention and material efficiency (Huhtinen, 2009). These are
summarised as ‘drivers’ and ‘barriers’ below. The study suggested that continuing climate change
debate and the 2008 EU Waste Framework Directive will serve to increase the focus to waste
prevention.
Recent waste policy and legislation at the EU level has increased its emphasis on preventive
approaches. This is indicated in the publication of its thematic strategy on the prevention and
recycling of waste (EC, 2005), which addresses waste prevention as one of the priority issues, and
the introduction of various preventive measures in the 2008 Waste Framework Directive (EU, 2008):
• Article 9 – prevention of waste:
“By the end of 2014, the setting of waste prevention and decoupling objectives for 2020,
based on best available practices including, if necessary, a revision of the indicators referred
to in Article 29(4).”
• Article 29 – waste prevention programmes:
“Member States shall establish, in accordance with Articles 1 and 4, waste prevention
programmes not later than 12 December 2013.”
“Member States shall determine appropriate specific qualitative or quantitative benchmarks
for waste prevention measures adopted in order to monitor and assess the progress of the
measures”
“The Commission shall create a system for sharing information on best practice regarding
waste prevention and shall develop guidelines in order to assist the Member States in the
preparation of the Programmes.”
• Annex IV – examples of waste prevention measures; inter alia:
o The development of effective and meaningful indicators
o The promotion of eco-design [see section 2.1.3]
o The provision of information on waste prevention techniques
o The use of voluntary agreements
o The promotion of creditable environmental management systems, including EMAS and
ISO 14001 [see section 2.3.4]
o Economic instruments such as incentives
o The promotion of creditable eco-labels [see section 2.2.7]
18

o Agreements with industry
In order to address the requirements set out in this Directive, the European Commission set up a
website devoted to waste prevention activities –
http://ec.europa.eu/environment/waste/prevention/index.htm. The EC also commissioned guidelines
to be prepared to assist the Member States in the creation of their waste prevention programmes.
These guidelines were delivered in November 2009, together with best practices factsheets and a
preliminary study for the development of waste prevention indicators.
Similarly, the United Nations policy is paving the way for preventive action. Its Agenda 21 section on
environmentally sound management of solid wastes described changing unsustainable patterns of
production and consumption as a basis for action, and advocated a preventive waste management
approach (UNEP, 1992).
Some initiatives that have progressed to the extent of writing a vision and setting firm targets
include:
• Canberra, Australia – adopted ‘No Waste by 2010’ in 1996
• Western Australia – ‘Towards zero waste by 2020’
• Toronto, Canada – adopted ‘zero waste by 2010’ in 2001
• New Zealand – ‘zero waste by 2020’ vision published in 2000
• U.S. – various targets set, for example in Seattle, Boulder City, Del Norte County, Santa
Cruz County, San Luis Obispo County
• Bath and North East Somerset Council, and the City of Leicester, England – both aspire to
achieve their zero waste policy by 2020
• Scotland released its zero waste Plan in August 2009 – various targets to 2025 and beyond
• Kamikatsu village, Japan
• Masdar City, in Abu Dhabi
Nader (2009) discussed two of the most significant projects of the Abu Dhabi Government’s Masdar
initiative – its world scale Carbon Capture and Storage (CCS) project and Masdar City – a largescale,
carbon-neutral, zero waste urban development. The aim of Masdar City is to demonstrate to
the world that it is possible, using today’s technologies, to live comfortably with minimal
environmental impact. The projected total investment in Masdar City is approximately US$24 Billion
and development is expected to take up to eight years. It is expected that the resident population
will rise to about 40.000 in 2018 when the city is complete with another 50.000 commuting into the
city for employment.
• Masdar City will rely on intelligent design and innovative urban planning in order to cut
energy consumption by about 70% from that needed for a conventional city, and that used
will be from renewable sources;
• Masdar City’s use of resources will be far lower than that in conventionally designed
communities;
• Through a combination of careful control of materials brought onto the site and intensive
recycling and waste-to-energy technologies, Masdar City will aim for net zero waste.
New Zealand’s zero waste vision report is a good example of how arguments for moving towards
zero waste are sold at the national/municipal level (Snow and Dickinson, 2000). The report
discusses many of the emerging trends, technologies and strategies that support zero waste, which
follow this section, and highlights the core principles. However, nine years on, the zero waste New
Zealand Trust web site (www.zerowaste.co.nz) comments that the idea has been sold, but
implementation of zero waste is still in its infancy and [the Trust] has no funding.
In England, Eco-towns are regarded as exemplar developments which aim to go beyond the
boundaries of current best practice (TCPA [Town and Country Planning Association], 2008).
Principles for eco-towns include:
• Planning for zero waste;
19

• Setting ambitious targets that go beyond state waste strategy targets;
• Seeking solutions that provide multiple benefits by using an integrated approach to the
provision and waste (and other) services; and
• Moving towards zero construction waste.
This report regarded zero waste as a unifying concept for a range of measures aimed at eliminating
waste, and commented that “moving towards zero waste is as much a cultural as a physical
challenge”(TCPA, 2008, p. 8).
It is likely that taking zero waste principles to the extreme will not only be expensive, but also affect
standard of living. It was interesting to note that in a recent poll for the Cabinet Office of Japan, a
majority (just, at 52.9%) of the 1.919 respondents from across Japan said they would choose to
move to a zero waste society even if lowered their standard of living (Japan for Sustainability,
2009).
Within the business world there are a growing number of examples of moves towards zero waste:
• Hewlett Packard – in 1998, California alone reduced waste by 95% and saved almost $1
million;
• Xerox Corporation – their Waste-Free Factory environmental performance programme
included reductions in solid and hazardous waste, emissions, energy consumption and
increased recycling, and resulted in a savings of $45 million in 1998;
• Interface is a company that has carpet and flooring products with operations in over 100
countries. Interface valued its efforts to eliminate waste to the value of $165 million; aims for
zero waste in all disciplines from accounting to sales to human resources, and zero
emissions; also referred to in section 2.2.5; to cite their actions in one country, in Interface
Canada:
o Total energy consumption was reduced by more than 70%;
o Waste to landfill reduced by more than 90%;
o Water consumption reduced by 97.5%;
o Product life cycles have been extended;
o Hazardous chemicals have been eliminated;
o Other outputs such as reduced emissions to air, reduced use of natural resources and
increased recycling, whilst sales have continued to rise;
• Tesco – announced in August 2009 it has achieved it’s target to divert 100% of it’s waste
(531.000 tonnes/year) from landfill (Tesco, 2009); and
• Many other examples can be found in the references using the resources which follow,
including DuPont, Nike, Wal-Mart, Ford, Toyota, and Ricoh Group.
Despite the growing abundance of practical examples of targets/visions towards zero waste there is
very little discussion of it in the peer-reviewed literature. Several Not-for-Profit/Non-Governmental
organisations have attempted to facilitate moves towards zero waste, including:
• Zero waste International Alliance – http://www.zwia.org/industry.html, agreed a definition
(above)
• Zero waste Alliance U.S. – www.zerowaste.org, formed to promote the use of zero waste
strategies, acts as a bridge between businesses and governmental and educational
organisations. The Alliance applies cyclical zero waste strategies, using “the tools of
industrial ecology, especially Life-Cycle Assessments, Design for the Environment, Green
Chemistry, Full Cost Accounting, Product Stewardship, Waste Exchanges and
Environmental Management Systems to assist businesses/organisations in their efforts to
becoming more efficient, competitive, profitable, and environmentally responsible”.
• Zero waste Alliance UK (http://www.zwallianceuk.org), including a charter that organisations
sign up to, which has a 10 point plan to achieving zero waste (dated 2006):
1. Set a target of zero waste for all municipal waste in Britain by 2020 (50% by 2010 and 75%
by 2015)
2. Extend the doorstep collection of dry recyclables to every home in Britain without delay
20

3. Provide doorstep collection of organic waste, and establish a network of local closed
vessel compost plants
4. Convert civic amenity sites into re-use and recycling centres
5. Ban from 2006 the landfilling of biological waste which has not been treated and
neutralised
6. Ban any new thermal treatment of mixed waste and limit disposal contracts to a maximum
of ten years
7. Extend the Landfill Tax into a disposal tax. Increase its level, and use it to fund the zero
waste programmes
8. Extend Producer Responsibility legislation to all products/materials that are hazardous or
difficult to recycle
9. Open up waste planning to greater public participation and end the commercial
confidentiality of waste contracts
10. Establish a zero waste agency to promote resource efficiency and act as a guardian of
public health.
• Grass Roots Recycling Network (http://www.grrn.org/zerowaste) has a section on zero waste
(U.S.). It describes zero waste as a philosophy and a design principle for the 21 st Century
that seeks to redesign the way resources and materials flow through society (‘one way
industrial system’), towards a ‘cradle to cradle’ approach (‘circular system’). Its web pages
include business principles for zero waste (see ZeroWIN Project Description of Work
document (14.12.2008), listings of zero waste initiatives globally (up to 2002), and case
studies of North American businesses that are ‘zero waste, or “darn close”’.
• Ecocycle (U.S.) – http://www.ecocycle.org/ZeroWaste - several sections of interest, including
a short video (6 minute duration) explaining zero waste systems, incorporating such
elements as eco-design, clean production and producer responsibility into a cyclical
production system to replace current wasteful linear systems.
The rhetoric from many of these organisations can be seen to focus overwhelmingly on what action
governments, local authorities and members of the public must take to achieve zero waste, and
indicates how action at industrial level is overlooked (for example the 10 point plan above). This
highlights the importance of the ZeroWIN project.
What definition should ZeroWIN adopt for use in industrial networks?
Zero waste is a goal that is both pragmatic and visionary, to guide people to emulate sustainable
natural cycles, where all discarded materials are resources for others to use. Zero waste means
designing and managing products and processes to reduce the volume and toxicity of waste and
materials, conserve and recover all resources, and not burn or bury them. Implementing zero waste
will eliminate all discharges to land, water or air that may be a threat to planetary, human, animal or
plant health. In industry the goal of zero waste will be accomplished with the aid of industrial
symbiosis and new technologies.
Possibly to be tweaked to emphasise the role of innovative design, industrial symbiosis and new
technologies.
• Who uses it in industrial networks?
Which industrial sectors?
Construction sector
Note that Work Package 3 of ZeroWIN has reported separately on re-use and recycling strategies
for construction and demolition waste in Europe. See ZeroWIN Project Activity Report 3.2.1.
The following two initiatives do not explicitly refer to industrial networks, however, being forwardlooking,
it is possible that moves towards zero construction waste will evolve in the context of
networking across the industry. Manifestations of this networking include building companies
sourcing low environmental impact material supplies, and in resource synergy measures to reduce
construction waste and by-products sent to landfill.
21

In the UK, the South East England Development Agency (SEEDA) in conjunction with two national
environmental organisations has launched the Pathway To Zero Waste (PTZW). The initial focus of
the programme is on construction waste, and PTZW intends to act as a catalyst to help deliver highimpact,
quick wins in the sector. Its targets for Construction and Demolition (C&D) waste are to:
• Reduce the amount of C&D waste sent to landfill by 50% against 2008 levels by 2011 - one
year ahead of national and industry targets; and to
• Reduce the amount of C&D waste sent to landfill by 90% by 2020, paving the way for a zero
waste region (SEEDA, 2009).
The Town and Country Planning Agency’s work on eco-towns in England highlighted requirements
and measures to strive for sustainable construction practice:
• Set high building design standards to achieve maximum points in the Code for Sustainable
Homes and for non-residential buildings achieve maximum points for waste and materials
under BREEAM (Building Research Establishment Environmental Assessment Method);
• Move towards zero construction waste. Eco-towns should exceed the [UK] Government’s
target of at least a 50% reduction in construction, demolition, and excavation waste to landfill
(compared with 2008), and achieve the 70% target in the Waste Framework Directive;
• The Strategy for Sustainable Construction (see below) targets should be achieved as
minimums, and zero non-hazardous waste to landfill by 2012 should be the aim for ecotowns;
• Tools for sustainable construction should be used by constructors, including:
• ‘SMARTWaste’ suite of tools and advice service – see www.smartwaste.co.uk (note that
SMARTWaste is simply the chosen brand name, it is not an acronym);
• Construction Resources and Waste Roadmap – www.crwplatform.org.uk, incorporating the
green guide to choosing A-rated construction elements – www.thegreenguide.org.uk;
• Making use of the tools and guidance provided by WRAP (Waste and Resources Action
Programme, http://www.wrap.org.uk/construction), including on how to design out waste, the
Achieving Resource Efficiency guide and an information service for producers, purchasers
and suppliers of recycled or secondary aggregates, named ‘AggRegain’
(www.aggregain.org.uk), set up to promote sustainable use of aggregates (TCPA, 2008).
A Strategy for Sustainable Construction in England was released by the Government in 2008. This
explained future measures towards sustainable construction and identified key resources and
organisations in the industry in England/Europe, including:
• The Commission for Architecture and the Built Environment (CABE), which supports a
network of building design champions across the country and engages stakeholders
throughout the design and construction process;
• The Institution of Civil Engineers (ICE), the Building Research Establishment (BRE) and the
Construction Industry Research and Information Association (CIRIA), who have developed
an assessment and award scheme for evaluating the environmental design quality of
projects;
• The Strategic Research Agendas of the industry-led National Platform for the Built
Environment (www.nationalplatform.org.uk) and European Construction Technology Platform
(www.ectp.org), and the work of the Technology Strategy Board (TSB), in addressing themes
such as the integration of new technologies in buildings, the use of new materials and
components and the use of low-carbon energy sources;
• The Knowledge Transfer Network for the Modern Built Environment (www.mbektn.co.uk)
which promotes knowledge transfer and aims to intensify technological innovation in the built
environment;
• Close working between the Government and the TSB and the European Research Area
network for the construction and operation of buildings (ERACOBUILD), running 2008-2011;
• The European Union’s Lead Markets Initiative on sustainable construction;
• The UK Green Building Council (www.ukgbc.org) has worked with members and
stakeholders to create a ‘roadmap to sustainability’ – a shared vision of a sustainable built
environment, and CIRIA and Constructing Excellence will promote the strategy throughout
22

industry;
• The Construction Industry Council (CIC) are developing and delivering a work programme in
support of sustainable construction, and new members must sign their Sustainability Charter;
• The Construction Projects Association encourages industry to develop products and
processes that contribute to a more sustainable built environment, and convenes working
groups and work programmes to that end; it also promotes uptake of Key Performance
Indicators (BERR, 2008).
Zero waste initiatives in other ZeroWIN sectors
The construction sector lends itself to ‘whole-system’ improvements which are inline with zero waste
policies or ambitions, as outlined. All actors along the supply chain are easily identified and can
therefore be targeted to make changes to their operations. Agreements can be fixed by contracts
(or similar means) and the construction site is known and is not mobile like normal goods and
service delivery.
In the high-tech sector, including electrical and electronic equipment, automotive equipment and
photovoltaics, these attribute are not present. In particular, there is much more mobility of such
equipment, including potentially complex distribution and sales routes via post-manufacturer actors
and retailers, then possibly multi-consumer and subsequent post-consumer stages. Traditionally,
ownership and responsibility of the goods changes multiple times throughout its lifetime, which has
made it difficult to enforce whole system approaches to minimise waste. Instead, more specific
measures have emerged, tailored to specific equipment-types, organisations or circumstances,
which are by nature limited to whatever the actor implementing the measure has within their remit.
For example, only the manufacturer could affect design approaches, and only the ‘waste’ collector,
typically the local authority/municipality, could initiate product recovery measures. ZeroWIN has
more ambitious aims and individual producer responsibility (IPR) has been identified as the potential
all-healing solution in this regard, by enforcing a single actor – the producer – to take responsibility
for it’s products throughout their lifespan (with the exception of the consumer phase, but critically,
with full responsibility for the post-consumer phase). For this reason producer responsibility
measures are being investigated at the start of the ZeroWIN project in Work Package 1 (as Task
1.2), alongside the development of the ZeroWIN vision and this literature review of suitable
concepts (Task 1.1). An examination of Switzerland’s 10 year experience of using extended
producer responsibility to manage electrical/electronic waste was conducted by Khetriwal et al.
(2009). A closed loop material cycle is used, aiming to create a circular flow of materials, with
WEEE being collected and recycled to go back into the production of new goods (Figure 3). Less
than 2% of the WEEE ends up in landfill (plus other residual recyclate from which raw materials
cannot be recovered going for incineration with energy recovery). See section 2.2.3 for an overview
of and a review of selected literature on EPR and IPR.
23

Figure 3. Flow of materials and finances in the Swiss e-waste management system. From Khetriwal
et al., 2009.
For more general examples of waste preventive measure in industrial networks, see the sections on
eco-industrial parks (2.2.1) and industrial symbiosis (2.2.2).
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding - drivers
Legislation / Policy measure Relevance to
Bans, on for example:
• Landfilling recyclable wastes
• Trading in hard-to-repair products
• Excess/ non-biodegradable
packaging
industrial networks
Can affect current
manufacturing and
waste management
practice. See other
sections (for example
2.2.6 for a listing of
current EU Directives).
Requirements within environmental
permitting
Product policy instruments See section 2.1.3 on
drivers for eco-design
of Energy-using
Products (EuP).
Producer Responsibility See section 2.2.3 on
EPR and IPR
Restrictions on the use of natural
resources
Restrictions on the production of
waste
24
Comment
e.g. on effectiveness of implementation
Can be very effective, but nonlegally
binding measures may be
preferable if they can be
implemented effectively.

From Huhtinen, 2009.
Non-legally binding - drivers
Policy measure Relevance to
industrial networks
Economic instruments:
• Subsidising rental and repair
services
• Tax measures, such as
o reduced VAT for repair
services or products with
eco-labels
o Taxes on natural resources
o Waste taxes
Government-industry dialogue: on
the basis that government refrains
from legislating if private actors
agree to achieve agreed goals.
Examples include negotiated
agreements and product panels.
Voluntary instruments:
• Environmental Management
Systems (EMS)
• Business projects that include
environmental improvements
• Consumer information and
education
• Eco-labels
• Material accounting – ‘green
accounting’ or full cost
accounting
From Huhtinen, 2009.
See section 2.3.4
See section 2.2.7
Legally binding - barriers
Legislation / Policy measure Relevance to
The lack of EU-level targets on
waste prevention/material
efficiency.
Pre-occupation with and overpromotion
of competing waste
management options, for example
by having high recycling targets,
may eclipse consideration of
preventive options.
From Huhtinen, 2009.
industrial networks
Non-legally binding - barriers
Policy measure Relevance to
industrial networks
Lack of incentive for waste
prevention due to low waste
disposal costs.
25
Comment
e.g. on method and effectiveness of
implementation and scope to extend
Encourages selling service rather
than products (see section 2.2.5).
Comment
e.g. on effectiveness of implementation
Comment
e.g. on method and effectiveness of
implementation and scope to extend

Lack of standards for reusable
products.
From Huhtinen, 2009.
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
It is too early for the zero waste concept to have been properly tested in industrial networks – hence
the EU’s funding of this international project via FP7.
• What are the key documents that discuss and report on it?
(Potential) Benefit in
industrial networks
Reference
Economic Huhtinen, 2009
Compatibility with EU policy COM(2005)666 final
• Discussion
2008/98/EC (Waste Framework
Directive)
Is this topic/concept one for use in ZeroWIN?
Yes, inherently.
Is it unproven e.g. not enough data?
Partially – hence the need for the ZeroWIN project.
Is it unlikely to be successful based upon previous experience?
No.
26
Comment e.g. Very positive
benefit demonstrated and evidenced
Increasing emphasis in waste
prevention measures
BERR (Department for Business, Enterprise and Regulatory Reform), 2008. Strategy for
Sustainable Construction. Available at http://www.berr.gov.uk/files/file46535.pdf [Last accessed 28
September 2009]
EC, 2005. COM(2005) 666 final. Taking sustainable use of resources forward: A Thematic Strategy
on the prevention and recycling of waste. Available at:
http://ec.europa.eu/environment/waste/strategy.htm [Last accessed 25 September 2009]
EU, 2008. Directive 2008/98/EC on waste (Waste Framework Directive). Official Journal of the
European Union. Available at: http://ec.europa.eu/environment/waste/framework/index.htm [Last
accessed 26 August 2009]
Huhtinen, K., 2009. Instruments for Waste Prevention and Promoting Material Efficiency: A Nordic
Review. Available at: http://www.norden.org/is/utgafa/utgefid-efni/2009-532 [Last accessed 14
August 2009]
Japan for Sustainability, 2009. More than 50% of Japanese People Willing to Sacrifice Standard of
Living for Zero-Waste Society. [Online]. Available at http://www.japanfs.org/en/pages/029595.html
[Last accessed 7 January 2010]
Khetriwal, D.S., Kraeuchi, P. and Widmer, R., 2009. Producer responsibility for e-waste
management: key issues for consideration – learning from the Swiss experience. Journal of
Environmental Management. 90(1), 153-165.
Nader, S., 2009. Paths to a low-carbon economy – the Masdar example. Energy Procedia, 1(1),
3951-3958.
SEEDA, 2009. Pathway To Zero Waste. [Online]. Available at:
http://www.seeda.co.uk/pathwaytozerowaste/construction.asp [Last accessed 4 September 2009]

Snow, W. and Dickinson, J., 2000. The End of Waste: zero waste by 2020. Zero waste New
Zealand Trust. [Online]. Available at:
http://www.zerowaste.co.nz/assets/Reports/TheEndofWaste.pdf [accessed 6 August 2009]
TCPA, 2008. Towards zero waste: eco towns waste management worksheet. Available at:
http://www.tcpa.org.uk/pages/towards-zero-waste.html [Last accessed 24 September 2009]
Tesco, 2009. TESCO DIVERTS 100 PER CENT WASTE FROM LANDFILL AHEAD OF TARGET.
Press Release dated 3 August 2009. [Online]. Available at:
http://www.tescoplc.com/plc/media/pr/pr2009 [Last accessed 4 September 2009]
UNEP, 1992. Agenda 21: Environment and Development Agenda. Available at:
http://www.unep.org/Documents.Multilingual/Default.asp?documentID=52 [accessed 11 August
2009]
2.1.2 Industrial ecology
• Industrial ecology
What are relevant definitions?
Industrial ecology is a concept that has given rise to a scientific field which uses natural ecosystems
as an analogy for human industrial activity. One of the more popular basic texts is Gredel and
Allenby’s (1995) Industrial Ecology, which links industrial activity to the social and environmental
sciences. There are a number of definitions of industrial ecology, however, Erkman (1997) noted
that most agree on three key principles. Firstly an inclusive, whole system, approach is taken to
analysing industrial processes rather than a single, linear, portion e.g. a supply chain. Secondly the
flows of material and energy outside the company boundary are factored into any analysis. Thirdly,
most state that key technologies will have a crucial role in transforming industrial systems to
promote sustainability.
Erkman and Ramaswamy (2003) stated that the principal objective of industrial ecology is to
restructure the industrial system by optimising resource use, closing material loops and minimising
emissions, promoting de-materialisation and reducing dependence on non renewable energy
sources. Industrial ecology takes a more integrated approach to materials cycles from extraction,
through the industrial economy to end of use, reclamation and recycling. Waste materials and
industry by-products can either be worked back into the supply chain or become the raw materials
for other industries promoting resource efficiency (Gredel, 1997). As such, industrial ecology as a
concept could be effective when thinking about achieving zero waste in industrial networks.
More recent papers include both the complex flows of materials inside and outside of the industrial
system and the effects of socioeconomic issues like policy, economics and technology. This gives a
comprehensive view of an industrial economy and its relation to the biosphere (Ehrenfeld, 2004;
Erkman and Ramaswamy, 2003). This in turn allows exchanges of materials and energy with the
environment to be better understood and the processes and linkages in product chain webs to be
explored (Bringezu, 2003).
What are the key concepts?
Frosch and Gallopoulos (1989) popularised the concept of industrial ecology in a paper in Scientific
American. They proposed the industrial eco-system as an analogue for the natural one and outlined
their vision of more closed industrial systems where the use of energy and materials was
maximised and waste and pollution were minimised. They also noted potential to achieve this in the
metals and plastics industries.
Lowe (1997) noted two distinct strategies for industrial ecology. The first is product based, focusing
on design for environment, Life Cycle Assessment (LCA) and related tools and policy. The second
is process based focusing on optimising resource and energy flows across an industrial economy.
Lowe went on to describe how these approaches are complimentary.
27

Garner and Keoleian (1995) listed three goals for industrial ecology within the general principle of
promoting sustainable development: the sustainable use of resources, through the promotion of
renewables and the efficient use of non-renewables; maintaining ecological and human health, by
promoting the eco-system view of an industrial economy maintaining function and structure; finally,
ensuring environmental equity, by addressing the environmental and inter-social inequalities on a
global level.
Industrial ecology can operate at firm, inter-firm and global levels from a sustainability perspective
(Figure 4). At the firm level the first strategy in Lowe’s (1997) definition is the most useful where
design for environment, pollution prevention and green accounting can contribute to resource
efficiency. At the inter-firm level both of Lowe’s strategies are applicable as product LCA tools,
along with more process-based strategies such as industrial symbiosis (see section 2.2.2), can be
used to promote sustainability. At the global level, material flow studies, based on the industrial
metabolism (see section 2.3.5), and the other principles of Lowe’s (1997) second approach are
most applicable (Centre of Excellence in Cleaner Production (CECP), 2007).
Figure 4. The 3 levels at which industrial ecology operates (From CECP, 2007).
Industrial processes are not viewed as being isolated from the associated surrounding systems; the
whole life cycles of resources, energy and capital are considered (Gredel and Allenby, 1995). This
approach can be used to study product chains from a sustainability perspective, by critically
examining the industrial metabolism of a system in terms of material input and output, process
efficiency and waste, or the environmental problems associated with the flows of specific
substances (Bringezu and Kleijn, 1997; Erkmann, 1997). By following the industrial metabolism
across actors within an industrial economy, the waste product from one industry can become the
raw material for another. This mutualism is the basis for industrial symbiosis (section 2.2.2;
Chertow, 2000). This principle would be very effective when developing the ZeroWIN concept.
What definition should ZeroWIN adopt for use in industrial networks and why?
Early in the development of the field, White (1994) defined industrial ecology as “The study of the
flows of materials and energy in industrial and consumer activities, of the effect of these flows on
the environment, and of the influence of economic, political, regulatory and social factors on the
flow, use and transformation of resources". This is often cited as the classic definition so it could be
an appropriate standard for ZeroWIN (Ehrenfeld, 2007).
• Who uses it in industrial networks?
Industrial ecology is objective and takes a multidisciplinary approach to the studies of industrial and
economic systems and their linkages with fundamental natural systems (Allenby, 2000). Economic
and social aspects are included as well as environmental and technical considerations (Ayers and
Ayers, 2002) to build a complete view of an industrial economy, the industrial process and its
relations to the biosphere.
The practical applications of the industrial ecology concept are mainly the analytical tools and
methodologies that have been developed with the industrial metabolism in mind. Material Flows
Analysis, Substance Flows Analysis and Life Cycle Assessment are all used across many sectors
28

and are discussed separately in this review (Duchin and Hertwich, 2003).
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
See the sections on eco-design (2.1.3), eco-industrial parks (2.2.1), industrial symbiosis (2.2.2), Life
Cycle Assessment (2.3.1) and industrial metabolism (2.3.5).
• Discussion
Is this topic/concept one for use in ZeroWIN?
The principles of industrial ecology can inform and provide a conceptual basis for many of the
approaches to waste in industrial networks including material and energy flow studies, dematerialisation,
Life Cycle Assessment, eco-design and eco-industrial parks. Material and energy
flow studies are based on mass balancing of the industrial metabolism (Bringezu, 2003). The dematerialisation
concept refers to the decline of material use per unit of service output (Ayres and
Ayers, 2002). Life Cycle Assessment takes the complete system view of a product in an industrial
economy (Garner and Keoleian, 1995). Eco-design requires that environmental objectives and
constraints be driven into process and product design and materials and technology choices
(Allenby, 1994). Eco-industrial parks are based on the extended principle of mutualism, industrial
symbiosis (Lowe, 1997). These topics are discussed later in this review; as such, incorporating the
principles of industrial ecology is likely to be fundamental to the ZeroWIN approach.
Is it unproven e.g. not enough data?
No.
Is it unlikely to be successful based upon previous experience?
No.
Allenby, B. 1994. Industrial Ecology Gets Down To Earth. Circuits and Devices. p. 24-28.
Allenby, B. 2000. Industrial Ecology, Information and Sustainability. Foresight. 2(2), p. 163 - 171.
Ayers, R.U. and Ayres, L.W. 2002. A Handbook of Industrial Ecology. Cheltenham: Edward Elgar
Publishing Limited.
Bringezu, S. Kleijn, R. 1997. Short Review of the MFA work presented. S, Bringezu. S, Moll. M,
Fisher Kowalski. R, Kleijn. V, Palm Eds. Regional and National Material Flow Accounting, ‘From
Paradigm to Practice of Sustainability’. Proceedings of the 1st ConAccount Workshop 21–23
January. Wuppertal: Wuppertal Institute. p. 306–308.
Bringezu, S. 2003. Industrial Ecology and Material Flows Analysis. In Perspectives on Industrial
Ecology, D. Bourg, Ed. London: Greenleaf Books.
Centre of Excellence in Cleaner Production, 2007. Regional Resource Synergies for Sustainable
Development in Heavy Industrial Areas: An Overview of Opportunities, and Experiences. Curtin
University of Technology, Perth. Available at: http://cleanerproduction.curtin.edu.au/research/[Last
accessed 24 September 2009]
Chertow, M.R. 2000. Industrial Symbiosis: Literature and Taxonomy. Annual Review of Energy and
the Environment. 25, p. 313-337.
Duchin, F. Hertwich, E. 2003. Industrial Ecology [online]. Online Encyclopaedia of Ecological
Economics Ed. International Society for Ecological Economics. Avaliable at:
http://www.ecoeco.org/pdf/duchin.pdf [accessed 1 August 2009]
Ehrenfeld, J. 2004. Can Industrial Ecology be the "Science of Sustainability"?. Journal of Industrial
Ecology. 8(1-2), p. 1-3.
Ehrenfeld, J. 2007. Would Industrial Ecology Exist without Sustainability in the Background?.
Journal of Industrial Ecology. 11(1), p. 73-84.
Erkman, S. 1997. Industrial ecology: An historical view. Journal of Cleaner Production. 5(1-2), p. 1-
10.
Frosch, R. A. Gallopoulos, N.E. 1989. Strategies for Manufacturing. Scientific American.261(3), p.
144-152.
29

Garner. A., Keoleian G.A., 1995. Industrial Ecology: An Introduction. National Pollution Prevention
Center for Higher Education, p. 1-32.
Gredel T.E., Allenby B.R., 1995. Industrial Ecology, 2nd Ed, Prentice Hall International Series in
Industrial and Systems Engineering.
Gredel T.E. 1997.Industrial Ecology Definition and Implementation. In Industrial Ecology and Global
Change, R. Socolow, Ed. Cambridge: University Press.
Lowe, E., 1997. Regional Resource Recovery and Eco-Industrial Parks: An Integrated Strategy.
Presented at the Symposium on Industrial Recycling Networks at Karl-Franzens-Universität Graz,
April 28-29, 1997. Available at http://www.indigodev.com/Eipresrecov.html [Accessed 15 August
2009]
White, R. 1994. Preface. The Greening of Industrial Ecosystems. B. R. Allenby, D. J Richards, Ed.
Washington, DC: National Academy Press.
2.1.3 Eco-design
What is eco-design?
‘Eco-design’, the term mainly used in Europe and Australia and the equivalent term ‘Design for
Environment’, mainly used in the US, are commonly understood as follows.
A systematic approach which takes into account environmental aspects in the design
and development process with the aim to reduce adverse environmental impacts (IEC,
2009).
The integration of environmental aspects into product design and development may also
be termed Design for Environment (DFE), eco-design, the environmental part of product
stewardship, etc. (ISO, 2002).
Note: The term ‘product’ used in this context is any goods or service, covering; services (e.g.
transport); software (e.g. computer programme, dictionary); hardware (e.g. engine mechanical part);
processed materials (e.g. lubricant).
Product design and development can typically integrate the following environmental aspects,
affecting any or all stages of the product’s life cycle (raw material acquisition, manufacture,
distribution, use and disposal). The seven main elements of eco-design according to WBCSD
(1996) are:
• Reducing the material requirements for goods and services;
• Reducing the energy intensity of goods and services;
• Reducing toxic dispersion;
• Enhancing material recyclability;
• Maximising sustainable use of renewable resources;
• Extending product durability; and
• Increasing the service intensity of goods and services.
Improvement options to achieve these may be grouped under the following eight ‘eco-design
strategies’ and identified with component, product, product system or new product concept levels,
or identified with life-cycle stages (Brezet and van Hemel, 1997) (Table 1).
30

Table 1. PROMISE Manual Ecodesign Strategies. Reproduced in International Council on Metals
and the Environment (ICME) and Five Winds International 2001; cf. pp. 77-78 in Brezet and van
Hemel 1997.
Level Eco-design strategy Improvement options
A. Component
Level
B. Product
Structure Level
C. Product
System Level
D. New Concept
Development
1. Selection of low-impact
materials
2. Reduction of material
quantity
3. Optimisation of
production techniques
4. Optimisation of
distribution system
5. Reduction of impact
during use
6. Optimisation of initial
lifetime
7. Optimisation of end-oflife
system
8. New concept
development
1.1 Cleaner materials
1.2 Renewable materials
1.3 Lower energy content materials
1.4 Recycled materials
1.5 Recyclable materials
2.1 Reduction in weight
2.2 Reduction in (transport) volume
3.1 Cleaner production techniques
3.2 Less production steps
3.3 Lower/cleaner energy consumption
3.4 Less production waste
3.5 Fewer/cleaner production consumables
4.1 Less/cleaner/reusable packaging
4.2 Energy-efficient transport mode
4.3 Energy-efficient logistics
5.1 Lower energy consumption
5.2 Cleaner energy source
5.3 Fewer consumables needed
5.4 Cleaner consumables
5.5 No waste of energy/ consumables
6.1 Reliability/durability
6.2 Easier maintenance and repair
6.3 Modular product structure
6.4 Classic design
6.5 Strong product–user relation
7.1 Reuse of product
7.2 Remanufacturing / refurbishing
7.3 Recycling of materials
7.4 Safer incineration/disposal
8.1 De-materialisation
8.2 Shared use of the product
8.3 Integration of functions
8.4 Functional optimisation of product
(components)
The sections below expand on particular strategies and improvement options from the above list.
These were selected for review in greater depth to inform ZeroWIN approaches. Strategy 6
(optimisation of initial lifetime) and strategy 7 (optimisation of end-of-life system; improvement
options 7.1 - reuse of product, and 7.2 - remanufacturing / refurbishing) are described in the subsection
‘prolongation of product use’. Subsequently, strategy 2 - reduction of material quantity - is
described in the sub-section ‘de-materialisation’, followed by a sub-section on ‘green chemistry’
which was determined to also require greater examination.
2.1.3.1 Prolongation of product use
Prolongation of product use means the longer use of a product or its components. Here, this
includes their re-use, refurbishment and upgrade to extend the life-span of the provision of
service(s).
Although confusion may exist because a number of other terms prefixed with ‘re’ are in usage
including recycling, remanufacturing, reconditioning, refurbishing and repairing, re-use has been
defined in some European directives regulating different waste streams such as ELV (End-of-Life
31

Vehicles), WEEE (Waste Electrical and Electronic Equipment) and packaging, for example, as
follows:
“‘reuse’ means any operation by which components of end-of-life vehicles are used for the
same purpose for which they were conceived.” [Directive 2000/53/EC of the European
Parliament and of the Council of 18 September 2000 on end-of life vehicles, Art. 2(6)]
“’re-use’ means any operation by which WEEE or components thereof are used for the same
purpose for which they were conceived, including the continued use of the equipment or
components thereof which are returned to collection points, distributors, recyclers or
manufacturers.” [Directive 2002/96/EC of the European Parliament and of the Council of 27
January 2003 on waste electrical and electronic equipment Art. 3(d)]
“'reuse’ shall mean any operation by which packaging, which has been conceived and
designed to accomplish within its life cycle a minimum number of trips or rotations, is refilled or
used for the same purpose for which it was conceived, with or without the support of auxiliary
products present on the market enabling the packaging to be refilled; such reused packaging
will become packaging waste when no longer subject to reuse.” [European Parliament and
Council Directive 94/62/EC of 20 December 1994 on packaging and packaging waste, Art.3(5)]
The reviewed literature shows no apparent noteworthy difference between up-grade and
refurbishment, although refurbishment is typically connected with buildings, while upgrade is mostly
used for ICT hardware and software.
The most appropriate definition of upgrade has been made by Borrman et al. (2009). They define
upgrade as: “any action with hardware or software on electrical and electronic equipment to improve
and/or increase its performance and/or functionality. The unit’s composition and design is changed
significantly by this process.” Upgrade is very often described as a “pre-treatment” stage to re-use
(Borrman et al., 2009). It is considered the preferred action for managing end-of-Life computers
since the WEEE Directive indicates that priority should be given to the repair, upgrade and re-use of
whole products for their original purpose (Williams and Sasaki, 2003).
In addition, Thierry et al. (1995) define the purpose of refurbishing as: “bringing the quality of used
products up to a specified level by disassembly to the module level, inspection and replacement of
broken modules.” According to them, refurbishing could also involve technology upgrading by
replacing outdated modules or components with technologically superior ones, but the main goal of
refurbishing products is to bring the products up to a level at which they can be re-sold.
Due to the short innovation cycles and resultant waste of usable electrical and electronic
equipment, there is a need to extend the lifetime of these products. Lifetime extension can be
achieved through designing easily replicable and reusable sub-assemblies or devices, which reduce
the risks and costs associated with disassembly. Unlike recycling, which requires the breaking down
of technical components, re-use keeps units or components in their entire state, which means it is
possible to capture both the materials contained within the product and the value added during
design and manufacturing.
For electrical and electronic products in particular, there are several end-of-life options. According to
the internationally recognised waste hierarchy (Figure 5), re-use is preferred to both recycling and
disposal, because it is associated with less environmental impact – it means fewer products enter
the waste stream.
32

Figure 5. Waste hierarchy. Anon, 2004, p.1.
If a product is in good working condition, it is usually refurbished and afterwards resold, but if it does
not make economic sense to refurbish a piece of equipment – that is, the labour and upgrade costs
outweigh its potential resale value, or the product is simply not in demand – it is disassembled into
its components. If there are working parts that have value, they are sold.
Re-use does not just apply to products. For instance, many industrial users of fresh water are under
increasing pressure to reuse water within their facilities. Their goal is to minimise the amount of
water that is discharged, either to a receiving stream or to a publicly owned treatment works, given
the cost of fresh water and the cost of additional treatment to reach discharge. A study on
industrial water re-use and wastewater minimisation can be found in Mann & Liu (1999).
Based on the above definitions, RREUSE (Anon, 2004?) has developed their own definition on Reuse,
which seems to be clear and precise, distinguishing the difference between Re-use and other
terms prefixed with ‘re’:
“An action or operation by which components or whole products are used for the same
purpose for which they were conceived”.
2.1.3.2 De-materialisation
De-materialisation is the reduction of the amount of material (or the energy embedded in the
material) required to provide the industrial outputs; the final products and the waste/by-products.
The term de-materialisation is easily associated with the properties that decrease material and
energy use (or carbon emissions) in a process, or for the long term (Sun & Mersito, 1999). Dematerialisation
is normally measured as the reduction in the ‘intensity of use’ defined as the material
(energy) use per unit of product (or per unit of value-added) (Malenbaum, 1978), or more broadly
per unit of output from an economic system, e.g. GDP 1 . This is generally achieved through the
implementation of eco-design and cleaner production principles.
1 In 1988 Herman, Ardekani, and Ausubel began to explore the question of whether the ‘de-materialisation’ of
human societies is underway (Herman et al., 1989). At that time, de-materialisation was defined primarily as
the decline over time in the weight of materials used in industrial end products or in the ‘embedded energy’ of
the products. More broadly, de-materialisation refers to the absolute or relative reduction in the quantity of
materials required to serve economic functions (Cleveland & Ruth, 1999; Wernick et al., 1996). However, dematerialisation
is also defined as “the change in the amount of waste generated per unit of industrial product”,
or “the reduction of raw material (energy and material) intensity of economic activities”, measured as the ratio
of material (or energy) consumption in physical terms to gross domestic product (GDP) in deflated constant
terms (Sun and Mersito, 1999). Sun and Mersito (1999) suggest these different definitions are essentially the
same.
33

De-materialisation is an important approach to sustainability (Cowell et al., 1997; Chainet, 1998;
Brattebø, 2000; UNEP, 2006; Unge, 2008). For example, the development of de-materialised
products, services, buildings and infrastructures with high resource productivity is one of the four
key concepts that support Factor 4/Factor 10. Commonly suggested approaches to industrial
ecology include the de-materialisation of industrial metabolisms by increasing resource efficiency
through design (Ayisi-Boateng et al., 2006) and through reorganising supply chain processes at firm
or sector level (Kazaglis et al., 2007). So the de-materialisation of industrial output is defined as
both a measure of resource productivity and more broadly as the strategy for striving to decrease
materials and energy intensity in industrial production - one of the six principal elements of industrial
ecology (Hardin, 1993).
According to Giljum et al. (2005), the main goal of a ‘de-materialisation’ strategy is to achieve an
absolute reduction of the aggregated volume of resource throughput, through changes in the
‘metabolic efficiency’ of firms, sectors or regions, and more efficient management of resources 2 , as
well as changes in consumer behaviour. The strategies mentioned in the literature for this goal
range from miniaturisation and changing from selling products to selling services (see section
2.2.5), to the reduction in the consumption of materials and the reduction in the waste generation.
The key metric for de-materialisation is mass. Several authors mention the categories biomass,
minerals, ores and fossil fuels. Material flow accounting is the main methodology used to test dematerialisation
3 (Cleveland and Ruth, 1999). However, since de-materialisation and intensity of
impact are ratios of parameters that may be variously defined and are sometimes difficult to
estimate, fluctuations in metrics must be interpreted cautiously (Wernick et al., 1997). Some authors
also consider that aggregate mass flows give very little insight into the environmental impacts of
these flows (Moll et al., 2003), and highlight the need of a disaggregation into the various
substances of environmental concern (Gonzalez-margínez and Schandi, 2008).
De-materialisation gained interest in the wake of discussions on eco-efficiency (WBCSD, 1996),
linking economic and ecological efficiency into a mobilising goal for business and other
stakeholders with a concern for the economy. However, the approach was not without its critics, for
example Rejinders (1998) and the Finnish Ministry of Trade and Industry (1998). In UN discussions
in the late 1990’s, quantitative targets for de-materialisation were mainly supported by some
European countries, whereas extractive industries in developing countries were critical and
unenthusiastic. Environmental science has offered another kind of criticism, directed at indicators,
such as material intensity, that do not differentiate between different substances and locations.
However, in spite of some reservations directed at over-simplified claims, the concept has gained
support among such different constituencies as business and environmentalists (PRIME Project,
2001).
Two possible solutions to de-materialise an economy are presented by Chaussade (2008): the
circular economy and the functional economy (also known as the performance economy).
The circular economic model breaks with the current linear model, which exhausts resources and
discharges waste without exercising control over the resulting waste streams or discharges.
Instead, the circular model advocates maintaining control over all the streams in order to replicate
the global nature of the quasi-cyclical way that eco-systems function. Whereas end-of-pipe pollution
control measures mainly meant more costs for industry, the concept of eco-efficiency raises the
idea of cleaner production (i.e. less pollution at lower cost) to the strategic level of business
2 Ausubel and Waggoner (2008) suggest that, as learning improves, the intensity of environmental impact per
unit production of staples often declines, citing examples of reducing energy use and carbon emission to food
consumption and fertiliser use, globally and in many different countries, ranging from the United States and
France to China, India, Brazil, and Indonesia.
3 Strong de-materialisation; measured as the decrease of the consumption of materials in a country in absolute
terms. Weak de-materialisation; measured as the decrease of the consumption of materials per unit of
service produced. Relative de-materialisation; decrease of the relation between use of materials and GDP.
34

management (WBCSD, 1996). On a macro-economic level, the attractive idea has been presented
that resource productivity could be improved to the same extent as labour productivity during the
past century. Thus, economic growth could be de-linked from materials use, and opportunities for
employment could be enhanced (Schmidt-Bleek, 1998). For some authors, going towards a green
economic system requires establishing closed-loop ecological alternatives in every sector that
substantively contribute to both de-materialisation and detoxification of the economy (Milani, 2005).
The functional economic model is based on substituting the sale of products for the sale of
services, in order that increases in sales can be decoupled from the resource streams that underpin
them. Herman et al. (1989), after discussing the limits to reducing the weight of materials used in
industrial end products (to provide durability, usability, safety), introduced the question: ”If the
product cannot be practically and safely reduced beyond a certain point, can the service provided
by the product be provided in a way that demands less material?”
As described in the section ‘selling service rather than product’ (2.2.5), the approaches to selling
services to achieve de-materialisation can be analysed from different perspectives 4 . The approach
in focus here relates to product design, where service is understood as the meeting of customer
need. It is not products that customers require, but the services - the essential functions - that
products provide (Heiskanen & Jalas, 2000). Focusing on design to achieve these essential
functions is said to provide new opportunities to reduce the use of natural resources (Tischner and
Schmidt-Bleek, 1993). Furthermore, selling service rather than products and de-materialisation
have resonances with a trend towards an ‘information society’ benefitting from knowledge
management rather than resource management. Products and their designs are increasingly
viewed from a knowledge-based perspective, rather than as physical entities, with manufacturing
companies encouraged to focus on the services provided by their products.
These two models, circular and functional, can be complementary in the achievement of dematerialisation;
the former responds specifically to the need to reduce overall consumption of raw
materials during production, the latter to the problem of increasing waste linked to increased
consumption.
2.1.3.3 Green chemistry
Green chemistry is part of the “pollution prevention” (P2) movement that aims to reduce or eliminate
waste at source by modifying production processes, promoting the use of non-toxic or less-toxic
substances, implementing conservation techniques, and re-using materials rather than putting them
into the waste stream.
Green chemistry is an approach that provides a fundamental methodology for changing the intrinsic
nature of a chemical product or process such that it is inherently of less risk to human health and
the environment (Anastas and Warner, 1998). In effect, green chemistry incorporates pollution
prevention practices in the manufacture of chemicals. Anastas (2003) considers that:
"Green chemistry addresses hazards, whether physical (flammability, explosivity), toxicological
(carcinogenicity, endocrine disruption), or global (ozone depletion, climate change) as an
inherent property of a molecule. Therefore the hazard can be addressed through appropriate
design of the structure and its associated physical/chemical properties at the molecular level".
The use and production of the chemicals via green chemistry may involve reduced waste products,
non-toxic components, and improved efficiency. The Royal Society of Chemistry (RSC), the
4 One approach is macro-economic, and focuses on the relative share of the service sector in the whole
economy. It is observed that the share of services is continually growing in industrialised economies, and
speeding up this development is seen as a means to achieve a sustainable, de-materialised economy. Another
approach looks at services from a business strategy perspective. The sales of products can be replaced
with services (Stahel, 1996). Examples of this approach include energy utilities, Demand Side Management
(DSM) initiatives, or firms selling rental and leasing services instead of the ownership of products.
35

American Chemical Society (ACS) and the United States Environmental Protection Agency (US
EPA) all have important green chemistry initiatives and useful websites. The history and
development of green chemistry is described concisely by Tundo et al. (2000) and Anastas and
Kirchhoff (2002); Hofer and Bigorra (2006) provide an industrial perspective. Note that green (or
environmentally benign) chemistry is not a new branch of chemistry but a philosophy combining the
critical elements which are essential for conserving the environment.
ZeroWIN should use Anastas and Warner’s (1998) original definition of green chemistry, which was:
“the design, development, and implementation of chemical products and processes to reduce
or eliminate the use and generation of substances hazardous to human health and the
environment.”
For reference, the US EPA (2008) defines green chemistry as:
“chemicals and chemical processes designed to reduce or eliminate negative environmental
impacts. The use and production of these chemicals may involve reduced waste products,
non-toxic components, and improved efficiency”.
Green chemistry claims to be an effective approach to pollution prevention because it applies
innovative scientific solutions to real-world environmental situations. It is based upon the so-called
“12 Principles of Green Chemistry”, originally published by Paul Anastas and John Warner in 1998,
which provide a road map for chemists to implement green chemistry.
The 12 Principles of Green Chemistry:
1. Prevent waste: design chemical syntheses to prevent waste, leaving no waste to treat or
clean up.
2. Design safer chemicals and products: design chemical products to be fully effective, yet
have little or no toxicity.
3. Design less hazardous chemical syntheses: design syntheses to use and generate
substances with little or no toxicity to humans and the environment.
4. Use renewable feedstocks: use raw materials and feedstocks that are renewable rather than
depleting. Renewable feedstocks are often made from agricultural products or are the
wastes of other processes; depleting feedstocks are made from fossil fuels (petroleum,
natural gas, or coal) or are mined.
5. Use catalysts, not stoichiometric reagents: minimise waste by using catalytic reactions.
Catalysts are used in small amounts and can carry out a single reaction many times. They
are preferable to stoichiometric reagents, which are used in excess and work only once.
6. Avoid chemical derivatives: avoid using blocking or protecting groups or any temporary
modifications if possible. Derivatives use additional reagents and generate waste.
7. Maximise atom economy: design syntheses so that the final product contains the maximum
proportion of the starting materials. There should be few, if any, wasted atoms.
8. Use safer solvents and reaction conditions: avoid using solvents, separation agents, or other
auxiliary chemicals. If these chemicals are necessary, use innocuous chemicals.
9. Increase energy efficiency: run chemical reactions at ambient temperature and pressure
whenever possible.
10. Design chemicals and products to degrade after use: design chemical products to break
down to innocuous substances after use so that they do not accumulate in the environment.
11. Analyse in real time to prevent pollution: include in-process real-time monitoring and
control during syntheses to minimise or eliminate the formation of by-products.
12. Minimise the potential for accidents: design chemicals and their forms (solid, liquid, or gas)
to minimise the potential for chemical accidents including explosions, fires, and releases to
the environment.
Advances in green chemistry address both obvious hazards and those associated with such global
issues as climate change, energy production, availability of a safe and adequate water supply, food
production, and the presence of toxic substances in the environment (Anastas and Kirchhoff, 2002).
36

Green chemistry forms part of the sustainable chemistry hierarchy, in which chemical products and
processes should be designed to the highest level of this hierarchy and be cost-competitive in the
market. The US EPA (2009) lists the hierarchy as:
1. Green chemistry: source reduction/prevention of chemical hazards:
• Design chemical products to be less hazardous to human health and the environment*;
• Use feedstocks and reagents that are less hazardous to human health and the
environment*;
• Design syntheses and other processes to be less energy and materials intensive (high
atom economy, low E-factor);
• Use feedstocks derived from annually renewable resources or from abundant waste; and
• Design chemical products for increased, more facile re-use or recycling;
2. Reuse or recycle chemicals;
3. Treat chemicals to render them less hazardous; and
4. Dispose of chemicals properly.
Note: * chemicals that are less hazardous to human health and the environment are:
• Less toxic to organisms and ecosystems;
• Not persistent or bioaccumulative in organisms or the environment; and
• Inherently safer with respect to handling and use.
In addition, the US EPA (2009) reports that green chemistry technologies can be categorised into
one or more of the following three focus areas:
1. The use of greener synthetic pathways. This focus area involves implementing a novel, green
pathway for a new chemical product. It can also involve using a novel, green pathway to redesign
the synthesis of an existing chemical product. Examples include synthetic pathways that:
• Use greener feedstocks that are innocuous or renewable (e.g., biomass, natural oils);
• Use novel reagents or catalysts, including biocatalysts and microorganisms;
• Are natural processes, such as fermentation or biomimetic synthesis;
• Are atom-economical; and
• Are convergent syntheses.
2. The use of greener reaction conditions. This focus area involves improving conditions other than
the overall design or redesign of a synthesis. Greener analytical methods often fall within this focus
area. Examples include reaction conditions that:
• Replace hazardous solvents with solvents that have a reduced impact on human health and
the environment;
• Use solventless reaction conditions and solid-state reactions;
• Use novel processing methods;
• Eliminate energy- or material-intensive separation and purification steps; and
• Improve energy efficiency, including reactions running closer to ambient conditions.
3. The design of greener chemicals. This focus area involves designing chemical products that are
less hazardous than the products or technologies they replace. Examples include chemical
products that are:
• Less toxic than current products;
• Inherently safer with regard to accident potential;
• Recyclable or biodegradable after use; and
• Safer for the atmosphere (e.g., do not deplete ozone or form smog).
It could also be argued that for a technology to be considered as green chemistry, it must
accomplish three things (WarnerBabcock Foundation, 2009):
1. Be more environmentally benign than the alternatives;
2. Be more economically viable than the alternatives; and
3. Functionally outperform the alternatives.
37

A number of metrics have been used to quantify sustainable practices such as measuring the
“greenness” of different chemical processes. These so-called “green metrics” include factors that
quantify: mass, energy, environmental persistence, ecotoxicity, photochemical ozone creation
potential, greenhouse gas emissions, water use, acidification factors, eutrophication factors, safety,
solvent type, etc (Curzons et al., 2001). Examples of “mass” metrics include:
• E-factor;
• Effective mass yield;
• Mass intensity;
• Atom economy;
• Carbon economy; and
• Reaction mass efficiency.
Although much has been written about the characteristics of metrics or what constitutes a good
metric (e.g. Curzons et al., 2001; Manley et al., 2007), it is generally agreed that metrics must be
clearly defined, simple, measurable, objective rather than subjective, and must ultimately drive the
desired behaviour (Constable et al., 2001 and 2002). Excellent critical reviews and discussion are
provided by Constable et al. (2002) and Manley et al. (2007).
What is eco-design? (continued)
Early consideration of these aspects during product development, when there is greater freedom to
change, can achieve greater improvements, given the product’s environmental aspects need to be
balanced with other factors, such as the product’s intended function, performance, safety and
health, cost, marketability, quality, and regulatory requirements.
Other common terms for related design practices include:
• ‘environmentally conscious design’ – a systematic approach which takes into account
environmental aspects in the design and development process with the aim to reduce
adverse environmental impacts (IEC, 2009);
• ‘green design’ – design to improve one or more environmental aspects, although not to
systematically address all impacts across the life-cycle; and
• ‘sustainable design’ – design that aims to optimise the positive environmental, economic and
social impacts of a product (BSI, 2009).
ZeroWIN should adopt the first definition above i.e. a systematic approach which takes into account
environmental aspects in the design and development process with the aim to reduce adverse
environmental impacts (IEC, 2009). This definition is published in a recognised international
standard, but unlike the ISO/TR 14062 definition (ISO, 2002), explicitly includes the aim to reduce
adverse environmental impacts, consistent with the aim of the ZeroWIN project.
The process of integrating environmental aspects into product design and development is continual
and flexible, promoting creativity and maximising innovation and opportunities for environmental
improvement. Anticipating or identifying the environmental aspects of a product throughout its life
cycle may be complex (ISO, 2002). Early identification and planning enables organisations to make
effective decisions about environmental aspects that they control and to better understand how their
decisions may affect environmental aspects controlled by others (ISO, 2002), i.e. by information
flows at the raw material acquisition, manufacture, use or end-of-life stages (Figure 6).
As a basis for this integration, environmental issues may be addressed in the policies and strategies
of the organisation involved. It is important to consider its function within the context of the system
where it will be used (ISO 2002).
38

Figure 6. Design for Environment Process Model.
After Roche, National University of Ireland, Galway in O’Neill, 2002.
Who uses eco-design in industrial networks?
Beyond application in individual organisations, there is evidence of eco-design being used in
industrial networks in sectors including automotive and electronics (Hafkesbrink et al., 2003), and
perhaps to a lesser extent in the construction sector. It is unknown whether there is evidence that
eco-design is found in the major photovoltaic panel industrial networks. For example, design for reuse,
upgrade and refurbishment are considered commonly available, if not widely implemented,
end-of-life strategies in the electronics industry, and is also seen in the automotive sector and the
construction industry.
Green chemistry has probably only occurred to a reasonable extent in the chemical and
pharmaceutical sectors, with few examples recorded because of a desire for competitive advantage
and a lack of knowledge transfer.
Synthesis of applications of “green” (environmentally benign) chemicals (e.g. effective but non-toxic
biodegradable plasticisers). Research in the field of green chemistry incorporates areas such as
polymers, solvents, catalysis, biobased/renewables, analytical method development, synthetic
methodology development, and the design of safer chemicals. Design for reduced hazard is a green
chemistry principle that is being achieved in classes of chemicals ranging from pesticides to
surfactants, from polymers to dyes (Garg et al., 2004; Anastas and Kirchhoff, 2002). Constable et
al. (2007) provide an overview of green chemistry in the pharmaceutical industry. Green chemistry
is used in the pulp and paper industry to improve process efficiency and to design safer chemicals
(Anastas et al., 2000a). An important current and future user of green chemistry is the
renewables/biofuels sector. Over 90% of organic chemicals in current use are derived from
petroleum; a truly sustainable industry will require a shift towards renewable feedstocks (Stevens
and Vertie, 2004). The role of catalysis in the design, development and implementation of green
chemistry has been outlined by Anastas et al. (2000a). There are now enough examples of green
chemistry at work in commercial processes that it can be shown to work across the product lifecycle
(Lancaster, 2002; Clark and Macquarrie, 2002). Examples of green chemistry applications in
the ZeroWIN sectors are outlined below.
Automotive Sector
• Polymers derived from carbohydrate feedstocks such as soy and corn are found in
consumer products like automobiles (Anastas and Kirchhoff, 2002);
39

• Zou et al. (2001) described how water has been split into oxygen and hydrogen using a
photocatalyst that absorbs light in the visible range. This technology is still at the research
stage, but clearly has the potential to provide an efficient source of hydrogen for use in fuel
cells. Hydrogen fuel cells in cars would greatly reduce air pollution;
• To address the environmental and human health concerns associated with the use of lead,
PPG Industries has developed a lead-free cathodic epoxy electrocoat (e-coat) for
applications by automobile manufacturers (Manley et al., 2007). This product is a waterborne
coating with volatile organic compound (VOC) and hazardous air pollutant (HAP)
concentrations of less than 0.5 lb/gallon or 99% VOC and HAP free, eliminating the resource
expenditures associated with managing, monitoring, and permitting these chemical classes.
The product apparently reduces the environmental impacts associated with the coating
application and eliminates the long-term use and exposure associated with lead-based
products. In addition, in comparative studies by Mercedes, some epoxy e-coat formulations
offer performance equivalent to former e-coats that contained lead (Bailey, 1998).
Construction (and related) Sectors
• Carbon dioxide has been recovered from flue gas and, in its supercritical state, combined
with pastes from fly ash to yield products such as roofing tiles and wallboard (Jones, 2001);
• An unusual application of green chemistry is in the area of road de-icers (Anastas et al.,
2000a). Millions of tonnes of sodium chloride and other inorganic salts are spread onto
roadways each winter. These salts run off into surface and groundwater supplies, where they
can cause significant damage to sensitive ecosystems. Salt usage during the winter months
also contributes to corrosion of automobiles and deterioration of roadways. Mathews (1998)
describes the use of biocatalysis to convert whey effluents into the biodegradable road deicers
calcium magnesium acetate and calcium magnesium propionate. Utilisation of waste
biomass, generated by the dairy industry, enhances the value of these waste products,
eliminates the need for treatment and disposal, and provides an economical feedstock for
manufacturing alternative road de-icers;
• Phair (2006) has reviewed the methods for determining the true costs, environmental impact
and performance of cement. The paper discusses basic strategies in ecological cement
innovation and identifies three promising alternative cements – alkali activated cements,
magnesia cements and sulfoaluminate - as case studies for innovation based upon basic
chemical properties, microstructure, production, engineering performance and environmental
position relative to Portland cement. However, at the time of publication, Phair states that “no
LCA study has quantitatively investigated the complete material, energy and lifetime balance
of alternative cements compared to that of Portland cement”.
Electronics Sector
• O’Neil and Watkins (2004) have provided a review of where green chemistry is possible in
the microelectronics industry. The review highlights that the use of supercritical fluids (SCF)
as process solvents offers both enhanced capability and environmental advantages and
have been shown to be effective in almost every stage of device fabrication, including
materials deposition and cleaning. The implementation of ‘green processing’ is evident in
fabrication of commodity items such as printed circuit boards (PCB). Significant advances
have been made in elimination of lead from solders and in the reduction of toxicity of IC
packaging and the industry has given consideration to the fabrication materials and
components, and the possibility of their recycling. However, data and publications to
evidence the claims are thin on the ground.
• Applications of supercritical CO2 are found in semiconductor manufacturing, where the low
surface tension of supercritical CO2 avoids the damage caused by water in conventional
processing (Gleason and Ober, 2001). The production of semiconductor devices consumes
approximately 1.7 kg of chemicals and fossil fuel as well as 32 kg of water for the
manufacture and projected use of a single 2.0 g memory chip (Williams et al., 2002). Chip
manufacturing involves hundreds of wet chemical processes that utilise a range of chemicals
and large amounts of high purity water in various stages of chip fabrication. The demand for
faster computer chips with more memory capacity requires constant improvement of
40

manufacturing processes used to fabricate smaller chips that are more densely populated
with transistors, capacitors, and other devices (Jones et al., 2004). Condensed CO2 has
emerged as a leading enabler of advanced semiconductor manufacturing processes. By
exploiting the physical properties of CO2, some of the current challenges encountered in
microelectronics processing related to shrinking feature sizes and materials’ compatibility
have been addressed (Williams et al., 2002). The CO2 process improves both technical and
environmental performance (Manley et al., 2007).
Research centres
There are a number of important research centres for green chemistry (and green engineering)
including:
• The Green Chemical Institute of the American Chemical Society
(http://portal.acs.org/portal/acs/corg/content?_nfpb=true&_pageLabel=
PP_TRANSITIONMAIN&node_id=830&use_sec=false&sec_url_var=
region1&__uuid=f47d5192-9493-4a1b-871d-427a1e9ab4c9);
• The Centre for Green Chemistry and Green Engineering at Yale
(http://www.greenchemistry.yale.edu);
• The Centre for Green Manufacturing at the University of Alabama
(http://bama.ua.edu/~cgm/);
• The Centre for Green Chemistry at Monash University
(http://www.chem.monash.edu.au/green-chem/);
• The Green and Sustainable Chemistry Network (http://www.gscn.net/indexE.html);
• The Royal Society of Chemistry’s Green Chemistry Network
(http://www.rsc.org/Membership/Networking/GCN/index.asp); and
• http://www.greenbiz.com/.
N.B. Numerous examples of green chemistry may be found in literature, although many are
theoretical rather than applied. This review is not meant to be comprehensive, but includes a
selection of green chemistry technologies relevant to ZeroWIN.
Why is eco-design used?
More organisations are coming to realise that there are substantial benefits in integrating
environmental aspects into product design and development. The interest of customers, users,
developers and others in the environmental aspects and impacts of products is increasing. This
interest is reflected in discussions among business, consumers, governments and nongovernmental
organisations concerning sustainable development, eco-efficiency, design for the
environment, product stewardship, international agreements, trade measures, national legislation,
and government or sector based voluntary initiatives. This interest is also reflected in the economics
of various market segments that are recognising and taking advantage of these new approaches to
product design (ISO, 2002).
Key legislative drivers promoting eco-design in industrial networks
Legislation /
Policy measure
Directive
2000/53/EC on End
of Life Vehicles
Directive
2002/96/EC on
Waste Electrical and
Table 2. Legally binding policy measures.
Relevance to industrial Comment
networks
Reduces the disposal of
end-of-life vehicle waste
(by mass) through
prevention, re-use and
recycling.
Reduces the disposal of
domestic and
commercial electrical
41

Electronic
Equipment (WEEE)
Framework
Directive
2005/32/EC on the
eco-design of
Energy-using
Products (EuP)
Restriction of
Hazardous
Substances (RoHS)
Directive
Registration,
Evaluation,
Assessment of
Chemicals (REACH)
Directive
Multilateral
Environmental
Agreements (MEAs)
– legal agreements
governed by
international law
and electronic waste (by
mass) through
prevention, re-use and
recycling.
Seeks to apply ecodesign
principles to
achieve life-cycle
benefits in addition to
meeting product sector
requirements for energy
efficiency.
Restricts the use of
hazardous substances.
Restricts the use of
potentially hazardous
chemicals.
Tyically restrict the use
of hazardous substances
or process pollutants.
Three legal agreements
governed by
international law are
particularly important:
o Kyoto Protocol to the
UN Framework on
Climate Change
(UNFCCC);
o Basel Convention on
the Control of
Transboundary
There is often little incentive to improve
processes beyond the limits set by existing
environmental regulations, which frequently
pre-scribe which technology should be used
(Poliakoff et al., 2002). The permitting regime
can protect firms from pressure to adopt safer
technologies (Thornton, 2001). The focus on
individual substances does not take account
of the full life cycle of chemical products; it
therefore systematically under-estimates the
environmental hazards of those substances
and the benefits of replacing them with
cleaner substitutes (Thornton, 2001). In
addition, Thornton (2001) highlights that the
regulatory framework’s focus on individual
facilities and the local environments around
them fails to take account of the global,
cumulative nature of chemical pollution. Little
attention is paid to the fact that there may be
hundreds of other facilities licensed to release
the same substance, each of which
contributes to a global burden; preventing
severe local contamination from individual
facilities, operating simultaneously, does not
prevent the slow accumulation of a global
pollution burden.
As above.
There are many synergies between the aims
of cleaner production and of these MEAs; for
example, relating to the Basel Convention
MEA: “Numerous case-studies around the
world are available for almost any sector that
generates hazardous wastes for illustrating
the ‘win-win-approach’ in cleaner production”
(UNEP, 2006).
42

Movements of
Hazardous Wastes and
their Disposal; and
o Stockholm Convention
on Persistent Organic
Pollutants (POPs).
These are supplemented by a diverse range of regulatory controls on environmental aspects and
impacts; environmental permitting, injunctions, consents, inspection and enforcement activities.
“Legislation has been the cornerstone of EU environmental policy since the launch of its first five
year environmental action programme in 1973”; these action programmes “have given rise to over
200 pieces of normative legislation for environmental protection” (Hillary and Thorsen, 1999).
Key industrial policies which are (or should be) driving uptake of eco-design in industrial
networks:
• Integrated Product Policy;
• Extended Producer Responsibility;
• Green Public Procurement; and
• Taxation. Taxation strategies often punish polluters and emitters, rather than rewarding
cleaner processes (Poliakoff et al., 2002).
Voluntary standards/codes which are (or should be) driving uptake of eco-design in
industrial networks
Table 3. Non-legally binding policy measures.
Policy measure Relevance to industrial
networks
Comment
ISO 1400x Promotes environmental ISO 14006 is in preparation to address the
standards
management within which application of eco-design within
eco-design may be environmental management – this builds on
promoted and contribute ISO/TR 14062.
towards zero waste. There is a lack of evidence on the
environmental improvements from selfregulatory
approaches such as EMAS and
ISO 14001.
Eco-Management Promotes environmental As above.
and Audit Scheme management within which
(EMAS)
eco-design may be
promoted and contribute,
towards zero waste.
Eco-labelling (EC Encourages businesses to
Regulation No. market products and
1980/2000, ISO services with better
14021/25)
environmental
performance; to which ecodesign
may be promoted
and contribute, towards
zero waste.
Corporate Social Eco-design may be Various measures including environmental
Responsibility promoted and contribute, reporting – increasing transparency and
towards zero waste. public accountability.
IEC 62430:2009
Environmentally
Conscious Design
Specific eco-design
guidelines including
measures towards zero
43

for Electrical and waste.
Electronic Products
Grants and awards Eco-design may be
promoted and contribute,
towards zero waste.
44
For example: US EPA’s prestigious annual
Presidential Green Chemistry Challenge
(www.epa.gov/greenchemistry/presgcc.html).
The economic impact of rising waste disposal costs partly through taxation on waste and legislative
requirements for minimising emissions from end-of-life processes is driving responses in design to
minimise waste and end-of-life emissions – avoiding risks to business from unsustainable business
practices (Curzons et al., 2001). These include risks from greenhouse gas emissions taxes (energy,
transportation), pollutants and toxic releases (energy, VOCs, various chemical compounds),
shipment of highly hazardous materials (reagents, intermediates, raw materials, solvents), new and
increasingly restrictive regulations (air, water, land, hazardous waste), etc. (Curzons et al., 2001).
The economic impact of investing in eco-design is commonly perceived to be a barrier, although the
advantage from eco-design enabling value creation and/or overall cost reduction in many, although
not all, cases, is widely reported. Decreasing mass intensity or energy intensity often improves
profitability. (Curzons et al., 2001). For example, given the significant gap between the technological
lifetime of electronics and the real time of use, due to consumers favouring the newest, most
advanced devices, eco-design is complemented by re-use strategies to keep reusable electronic
components and equipment earning revenue in the market (Griese et al., 2004).
Drivers can also include:
• A desire for competitive advantage (Curzons et al., 2001) e.g. “first mover” advantages in
product development for new greener markers, including financial and reputational
advantages; and
• Improved worker health and safety (reduced insurance costs).
Barriers to implementing eco-design can include:
• Overcoming lack of awareness and inertia (environmental objectives are not the over-riding
drivers for change); historically, in many industries, pollution control decisions are made with
little or no regard to the process that generates waste (El-Halwagi, 1998);
• (Perceived) expense;
• Poor consensus on eco-performance metrics; and
• There are few research methodologies and publicly available case studies that apply a
standardised LCA to a sufficient range of products, such as those derived using a green
chemistry approach.
For example, green chemistry is heavily research-driven; this is expensive. In addition, competitive
pressures make companies sceptical of knowledge transfer in order to keep “first mover”
advantages (Poliakoff et al., 2002). The university and government sectors place greater emphasis
on green chemistry than most industrial sectors (Nameroff et al., 2004). Green chemistry needs to
become more prominent in research agendas and funding sources in order to encourage the
development of novel green alternatives to existing chemical syntheses. Research needs to be
pursued in an academic setting to justify its viability in industrial applications (Manley et al., 2007).
The risks and costs of switching to a green chemistry process, which may include staff development
and training, changes in infrastructure and sourcing raw materials, may be substantial. The
implementation of green chemistry is radical and complex, resembling the introduction of fuel cells
to replace fossil fuels or nuclear power generation (Poliakoff et al., 2002). New green chemistry
processes will be introduced only if they can provide a payback quickly enough to be attractive to
managers and investors. They will not be feasible unless they provide chemical advantage over
current processes and are sufficiently profitable to offset the costs of shutting down the existing
plant (Poliakoff et al., 2002). This is a particular factor for new (and relatively unproven)
technologies. The provision of economic incentives (grants, tax breaks) may be necessary to
stimulate larger-scale changes.

Establishing the true environmental impact of a new technology requires full life-cycle assessments
as well as toxicological testing of any materials involved, such as reagents or solvents;
unfortunately, many of these data cannot be obtained until the process has been tried out on a
commercial scale (Adams, 2000). The outcome of a full LCA can be counter-intuitive. For example,
Gustafsson and Börjesson (2007) conducted an LCA on four different wood surface coatings (two
wax-based coatings and two lacquers using ultra violet light for hardening). One of the wax-based
coatings was based on a renewable wax ester produced with biocatalysts from rapeseed oil,
denoted 'green wax', while another was based on fossil feedstock and was denoted 'fossil wax'. The
results showed that the environmental benefits of using renewable feedstock and processes based
on biocatalysis were limited. This study illustrates the importance of properly investigating the
environmental performance of a product from a standardised LCA perspective and not simply
considering it 'green' because it is based on renewable resources.
What are the advantages and disadvantages of eco-design?
Eco-design approaches may result in improved resource and process efficiencies, potential product
differentiation, reduction in regulatory burden and potential liability, and costs savings. Benefits may
therefore include; lower costs, stimulation of innovation, new business opportunities, and improved
product quality (ISO, 2002).
Brezet and van Hemel (1997) suggest the following examples of generally favourable and adverse
inter-relations between environmental aspects addressed in eco-design, and other product system
requirements (Table 4).
Table 4. Examples of generally favourable and adverse inter-relations between environmental and
other product system requirements. After Brezet and van Hemel, pp. 160-161, 1997.
Eco-design principles Other product system requirements
+ = favourable effect - = adverse effect
1a Cleaner materials + Low disposal costs
- High-tech materials (optimised for a single application)
1b Renewable materials + Low materials costs
- High-tech materials
1c Lower energy content + Lower material costs
materials
1d Recycled materials + Low materials costs
- Hygienic requirements
- Strong construction
- High-tech materials
1e Recyclable materials + Environmentally sound image
- High material costs
2a Reduction of weight + Less purchased material
+ Low transport costs
+ Ease of handling
- Expression of quality
2b Reduction in (transport)
volume
- Operational reliability
+ Low transport costs
+ Low packaging costs
+ Low storage costs
+ Ease of handling
+ Low energy bills
3c Lower energy
consumption
3d Less production waste + Less purchase of materials
+ More efficient use of machines
3e Fewer production + Fewer purchases of auxiliary materials
consumables
45

Eco-design principles Other product system requirements
+ = favourable effect - = adverse effect
3f Cleaner production + Low waste costs
consumables
4a Less/cleaner/reusable + Reduction in cost
packaging
- Product protection
- Expression of quality
- Publicity on packaging
4b More energy-efficient + Reduction in costs
logistics e.g. mode of
transport
5a Lower energy
+ Low energy bills for user
consumption
- Ease of use
- Safety
5c Fewer consumables + Reduction in costs for user
+ Ease of use
5d Cleaner consumables - Costs
- Availability of consumables
6 Optimisation of initial + Quality image
lifetime
- Sales quantity
7a Re-use of product + Reduced disposal costs.
- Sales quantity
- Additional material, collection, cleaning or transport costs and
impacts
- Potential hazards or costs through variable degradation
7b Remanufacturing and + Reduction in cost
refurbishing
+ Enabling the re-use of components
7c Recyclability of materials + Environmentally sound image
+ Controlled material sourcing and variety
8a De-materialisation + Reduction in costs
+ New market opportunities
8c Integration of functions + Ease of use
+ Low transport, storage and material costs
- Operational reliability
8d Functional optimisation + Ease of use
of product (components) - Cost for user
For example, eco-design achieving de-materialisation - the reduction of material input per unit
service/output - can lead to improvement in environmental aspects: reduced resource depletion and
waste generation, as well as reduced costs fitting into the “traditional” framework of industrial firm
performance (Haake, 1998). However, a focus on individual principles, targets or measures e.g.
service output per unit of material inputs, does not consider the relative toxicity of the materials. A
change in materials may cause side-effects due to reduction of life span, a need for more
transportation, a tendency to throw away instead of repair, reduced recyclability etc. (Van der Voet
et al., 2002). Similarly, design for recycling may have unwanted side effects due to extra
transportation and energy use associated with the recycling processes.
Less predictable than these side effects may be "rebound effects": One well-known example of this
is the introduction of very efficient low-energy light bulbs with low energy costs which gave people
the idea that the energy use and costs were so low that it did not matter if they left them switched
on 24 hours a day. Similarly customers may respond to the introduction of highly efficient heating
systems that reduce the cost of energy, by having higher standards of warmth and therefore
increase overall energy consumption. Indirect rebound effects can also occur, for example
consumers may spend the money which is saved by the use of efficient light bulbs and heating
systems, on more impacting behaviours, for example to buy holiday flights (Haake, 1998).
46

Only a holistic life-cycle approach and assessment can more objectively balance the advantages
and disadvantages of potential improvements, at least to compare the varying parameters among
comparable design options.
Green chemistry for example can offer the following advantages:
• It should increase the sustainability of both industrial chemicals and chemical based
consumer products via minimisation of materials needed to achieve the same performance
(Horvath and Anastas, 2007);
• The development of recyclable chemical-based consumer products could significantly
reduce the use of virgin raw materials in the chemical and allied industries and lower the
amount of waste generated (Horvath and Anastas, 2007);
• The replacement of components of the products that are persistent with biodegradable
chemicals should be enabled (and preferred) (Horvath and Anastas, 2007); and
• Although the prevention of accidents involving chemicals has traditionally been considered
as an engineering issue, the accidental potentials of chemicals can be approached using
green chemistry by selecting inherently safer chemicals and reaction types during the design
of green processes (Horvath and Anastas, 2007).
Disadvantages of green chemistry can include:
• Green chemistry is a partially proven concept and few well documented examples of
financial savings and environmental benefits have been demonstrated using a standardised
LCA approach (see examples below);
• In the absence of a policy framework that systematically moves society toward more
sustainable production methods, green chemistry will remain a niche discipline, the industrial
equivalent of organic food and environmentally friendly building materials (Thornton, 2001);
• A general lack of agreed and commonly applied green chemistry metrics (Constable et al.,
2002). This leads to e.g. uncertainty as to what represents a genuinely “greener” alternative.
To meet the goals of sustainability and to enable industrial ecology, green chemistry and
engineering needs to be studied from a life-cycle perspective (Lankey and Anastas, 2002).
The ultimate metric is probably a full (standardised) LCA, but full LCA studies for any
particular product can be difficult and time-consuming. As with LCA, green chemistry metrics
have to be applied with clear system boundaries. Green chemistry needs to mature from
being the “right thing to do” to an activity based on reliable data that demonstrates its merits;
• Some green chemistry metrics have not been fully developed and agreed yet e.g. ozone
depletion, global warming potential, environmental persistence, biodegradability, etc;
• Many green chemistry metrics e.g. yield or atom economy, are not useful as stand-alone
metrics, particularly from a business perspective (Constable et al., 2002); and
• There is often a substantial time lag between testing theoretical ideas in a research context,
obtaining patents and clear evidence of successful, proven economically-sound case studies
(Poliakoff et al, 2002).
Examples of the application of eco-design in industrial networks
Eco-design may be detected in the design phase of the product development within a wide range of
industrial networks in automotive, construction, high tech/electronics and photovoltaics sectors,
although not necessarily applied to its full potential to achieve GHG emission savings, greater reuse
and recycling of waste and fresh water savings. For example, de-materialisation through ecodesign
of electrical and electronic products is demonstrated in the miniaturisation and the
integration of several services in a single product, also in some cases changing from selling
products to selling services e.g. ICT.
Where design addresses specific objectives, such as those contributing to zero waste in industrial
networks (for example, design to incorporate recycled materials, or to enable disassembly as part of
the preparation for re-use or remanufacturing), then the range of design approaches, often denoted
47

Design for X, may be usefully considered within the scope of eco-design. Notable among the
Design for X approaches applied to enable re-use, remanufacturing and recycling are:
• Design for Disassembly (DfD);
• Design for durability/longevity (lifetime extension);
• Design for prolongation of product use through upgrade and re-use; and
• Design for (material) recycling.
Other Design for X approaches that may be specifically supportive within ZeroWIN include:
• Design for minimal production waste;
• Design for production waste recycling/downcycling;
• Design for repair; and
• Design for depollution.
No studies were found that dealt specifically with the application of design for prolongation of
product use in industrial networks, though companies have addressed prolongation of product use
for example as follows.
• Dell Computer Corporation has been offering refurbished products through Dell's Online
Factory with a standard warranty and technical support since 1992. Through its ‘Design for
Environment Programme’, Dell includes material selection, recycling, packaging, energy
conservation, and extending a product's life span into its product design (Anon, 2004).
• Introduced in 1987, Kodak's single-use-cameras were criticised by environmental groups
because of their one time use. In 1990, Kodak redesigned the cameras for easy inspection
and re-use/recycling, and started collecting the used cameras from the photo-finishers once
the customer's film had been removed. The photo-finishers are reimbursed both through a
fixed fee and for the transportation cost for each returned camera (Krikke et al., 1998). In
2003, the company remanufactured and/or recycled 125 million cameras in the US. Through
its continuous improvement, 77 percent to 90 percent (by weight) of all collected cameras
may be remanufactured (Giuntini & Gaudette, 2003). A single camera can be remanufactured
up to 10 times (Krikke et al., 1998). The successful environmental initiative
with single-use-cameras has lead the company to investigate the recycling and
remanufacturing aspects of all its products and by-products. Acetate film base manufacturing
process at Kodak Park is redesigned to allow the pieces of film base to be directly reused to
make more film which reduces the incineration of scrap trim material by one million pounds
per year (Giuntini and Gaudette, 2003).
The potential for remanufacturing as an approach towards zero waste in industrial networks is
reviewed in more detail elsewhere in this report (section 2.2.4.2), and can clearly benefit from
proactive eco-design, for example to enable the core of the product to be accessed through
economic disassembly, inspection, cleaning, refurbishment and re-assembly (Gray and Charter,
2007).
While de-materialisation is frequently applied through design to end products, it is equally applicable
to the production process - eliminating unnecessary cleaning steps in manufacturing electronics
products, for example, which reduces solvent supply and consumption (PRIME Project, 2001). The
waste treatment sector can also be an exponent of these strategies, introducing technologies for
recycling and the valorisation of waste generated within an industrial area in an integrated way – for
example the Ebara technology applied in the Fujisawa eco-industrial park, planned as a strategy
towards zero emissions (Morikawa, 2000).
There are few detailed examples of the application of green chemistry in ZeroWIN sectors. Indeed,
in only a few cases has green chemistry had time to establish a best practice (Poliakoff et al.,
2002). Green chemistry patents are an indicator of environmental innovation and research and
development; over 3.200 green chemistry patents were granted in the US patent system between
1983 and 2001, with most assigned to the chemical sector (882) (Nameroff et al., 2004). Relatively
few were assigned to ZeroWIN sectors (automotive – 26; electronics – 17; semi-conductors – 2)
(Nameroff et al., 2004). Performance-related data is limited by the lack of agreement or consensus
48

on green metrics (see discussion in other sections). However, a cross-cutting issue is that ZeroWIN
sectors obtain large quantities of raw materials and feedstock via the chemical industry, which is the
largest manufacturing consumer of water. A 2001 report by the Organisation for Economic
Cooperation and Development (OECD) indicated that within the industrialised (OECD) countries,
the chemical industry was the largest consumer of water (43%) followed by metals processing
(26%), pulp and paper (11%), with other uses accounting for 20% (OECD, 2001). Thus as a system
science (Graedel, 2001), green chemistry can provide scientifically based solutions to protect water
quality and relieve the increasing global pressures on water quantity (Hjeresen, 2001).
How successful has eco-design been in industrial networks?
As many eco-design activities started by focusing on end-of-life aspects, design for end-of-life
strategies are relatively mature with good knowledge applied successfully in larger companies. To
reach the upper levels of eco-design (the function and system innovation levels) requires dialogue
with many stakeholders and calls for changes at the product and infrastructure levels – for example
enabling eco-design with suppliers (Hafkesbrink et al., 2003). For example, attempts are made to
recommend designers use standardised connection systems, for disassembly when the products
are coming back to a network of re-use/recycling centres.
Given most electrical and electronic products are designed for an efficient automatic assembly
process, it can be challenging when it comes to disassembly. Also, designers can hardly guarantee
acceptable quality for the retrieved spare parts and hence the value for future retrieval networks.
Considering this, nearly all Design for Environment tools are under-developed concerning re-use
opportunities of end-of-life products. The main reason is that the design tools are too general to
deliver a basis for standardised and automated disassembly activities. In general, design supporting
the activation of industrial metabolisms, using waste flows as inputs of other processes, will
continue to lead to mainly incremental de-materialisation at points within the industrial network.
Taking available research into Design for Remanufacture as a barometer (Gray and Charter, 2007),
there appears unrealised potential for design to proactively facilitate the technical and economic
feasibility of a zero waste industrial network, founded, for example, on a remanufacturing system.
Product and system designers will respond to the known constraints and opportunities within the
known business model, so the success of eco-design in industrial networks may be related to how
involved designers are in establishing and applying the approaches to zero waste in industrial
networks discussed elsewhere in this report, and envisaging new possibilities. The success of
design in industrial networks may not be generalised from the limited view available here, noting
simply that eco-design is as successful as the range of actors’ skills, drivers and barriers allow.
Key documents that discuss and report on eco-design (including prolongation of
product use, de-materialisation and green chemistry
Table 5. References showing (potential) benefit of eco-design in industrial networks.
(Potential) Benefit in
industrial networks
Reference Comment
Environmental Brezet and van Hemel, 1997
Charter and Tischner, 2001
Hafkesbrink et al., 2003
Haake, 1998
Wernick et al., 1997
Ausubel and Waggoner, 2008
Herman et al., 1989
Schmidt-Bleek, 1998
Heiskanen and Jalas, 2000
PRIME Project, 2001
Lindahl et al., 2006
Schischke et al., 2003
Benefit demonstrated
49

Roper, 2006
Burankan, 1998
Griese et al., 2004
Knoth et al., 2002
Williams and Sasaki, 2003
Gustaffson, 2004
Doran et al., 2009
Yi-Kai et al., 2008
Douglas, 2006
Mazzolani and Ivanyi, 2002
Anastas and Warner, 1998
Economic Van Wassenhove et al., 2008
Rubinstein, 2004
Wilbert et al., 2003
Technical feasibility Brezet and van Hemel, 1997
Charter and Tischner, 2001
Hafkesbrink et al., 2003
Gray and Charter, 2007
Rifer et al., 2009
Operational feasibility Charter and Tischner, 2001
Hafkesbrink et al., 2003
Gray and Charter, 2007
Zhao and Jagpal, 2006
Hwai-En and Wei-Shing, 2004
Mann and Liui, 1999
Constable et al., 2002
Compatibility with EU
policy
Discussion
Manley et al., 2007
WBCSD, 1996
50
Business value of product
re-use/upgrade
demonstrated in specific
cases
Eco-design – a systematic approach which takes into account environmental aspects in the design
and development process with the aim to reduce adverse environmental impacts – should be
included in ZeroWIN given the potential to achieve waste reduction in industrial networks as well as
technical, environmental, economic and social benefits, each largely dependent on decisions taken
at the design stage.
Prolongation of product use is very often seen as part of end-of-life management, beginning when
the user returns or disposes products due to a variety of reasons, though prolongation starts with
improved design. In general, re-use is influenced by ease of dismantling and repairing/upgrading
sub-assemblies or devices, with standardisation for disassembling processes still very uncommon
given that the designs of electr(on)ic products vary dramatically. Considering this, nearly all design
for environment tools are under-developed concerning re-use opportunities; for example the tools
are too general to deliver a basis for standardised and automated disassembly activities. As a result
there is a need for cooperation between recyclers/re-use specialists and designers of electrical and
electronic equipment in order to close the gap between the rules of design for disassembly and the
disassembly processes used in practice; to establish the required design criteria, which will give
detailed instructions about the connection systems, the disassembly technologies and the logistic
aspects related to product structure.
De-materialisation, reducing the resource intensity of production and consumption, is one of the
main directions in which the practical value of industrial ecology (and associated industrial
networking) has been explored (Ehrenfeld, 1997; Erkman, 1997; Den Hond, 2000).

Green chemistry is a developing concept from which to evolve zero waste methods. Its value
depends on the process/technology. Green chemistry and engineering are relatively new concepts
and focus on the synthesis and design of more sustainable chemicals rather than the manufacture
of new products per se. Two of the most important researchers in this field (Horvath and Anastas,
2007), have stated that despite:
“..all of the research successes realised in green chemistry over the past 15 years, it is
necessary to recognise and understand that the field is in a nascent stage and that some of
the most important research questions within it are only now beginning to be identified and
pursued. As a research community, it is important to accelerate the pursuit of these research
areas by clearly enunciating the great research challenges, the great scientific unknowns
within the field of green chemistry. Only through this exercise will the top institutions, the major
funding agencies and the primary industrial users of these innovations understand the power
and potential of green chemistry research discoveries and be willing to provide the support and
funding needed to see this field reach its potential”.
The potential success of design in industrial networks may not be generalised from the limited view
available here, noting simply that eco-design applied to achieve GHG emission savings, greater reuse
and recycling of waste and fresh water savings will be as successful as the range of actors’
skills, drivers and barriers allow, amongst success factors common to any innovation system. The
greatest benefits can be achieved at the function and system innovation levels where the system
design of industrial networks is particularly significant; requiring dialogue to resolve design
parameters early with many stakeholders.
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2.1.4 Cleaner production
Related to industrial ecology, zero emissions; similar to pollution prevention (used interchangeably).
• What is cleaner production?
Cleaner production has been summarised as “an efficiency concept used mainly by business to
reduce the impacts of production on the environment” (Snow and Dickinson, 2000).
56

Researchers from the Canadian Centre for Pollution Prevention wrote that “The goal of cleaner
production–pollution prevention (CP-P2) is to avoid the creation of pollutants, rather than try to
manage them after they have been created” (Wolnik and Fischer, 2006).
The pollution prevention [and cleaner production] paradigm as a concept innovation for a clean
industry replaces the old paradigm of pollution control (Baas, 2005). It can be regarded as the
middle step between past approaches to waste and pollution (manage and control it) and future
approaches of zero waste and emissions (re-design and re-think products and processes to prevent
the creation of waste in the first place).
What are relevant definitions?
The United Nations Environment Programme (UNEP) working group coined the term in 1989 (Baas,
1995). It was defined as:
“The conceptual and procedural approach to production that demands that all phases of the
life-cycle of a product or of a process should be addressed with the objective of prevention or
the minimisation of short and long-term risks to humans and the environment”.
Baas (1995) quoted UNEP’s (1992) “four additional statements designed to answer the question
‘what is cleaner production?’”, commenting that they represent different dimensions of the
preventive approaches of cleaner production:
(a) Cleaner production means the continuous application of an integrated, preventive
environmental strategy to both processes and products to reduce risks to humans and the
environment;
(b) Cleaner production techniques include conserving raw materials and energy, eliminating
toxic raw materials, and reducing the quantity and toxicity of all emissions and wastes;
(c) A cleaner production strategy for products focuses on reducing environmental impacts
throughout the entire life cycle of the product - from raw material extraction to the product's
ultimate disposal; and
(d) Cleaner production is achieved by applying expertise, improving technology and changing
attitudes.
Baas (1995) summarised these statements succinctly: (a) policy goals and strategy of the
preventive approach; (b) and (c) address the objects of reduction and strategy to achieve them; (d)
reflects the method.
UNEPs International Declaration on Cleaner Production uses essentially the same language but
phrases it positively: “We understand cleaner production to be the continuous application of an
integrated, preventive strategy applied to processes, products and services in pursuit of economic,
social, health, safety and environmental benefits” (UNEP, 2001).
The Canadian environment ministry defined pollution prevention (their term for cleaner production)
as the use of processes, practices, materials, products, substances or energy that avoid or
minimise the creation of pollutants and waste, and reduce the overall risk to human health or the
environment” (Wolnik and Fischer, 2006).
What are the key concepts?
“Cleaner production found mention at the UN Conference on Environment and Development in
1992 (Rio Summit) as an important strategy to take forward the concept of sustainable
development. Agenda 21 made significant references to cleaner production and has in fact served
as a guiding framework for the implementation of cleaner production. It also provided a direction
and focus to the adoption of cleaner production on a multi-stakeholder and multi-partnership basis”
(UNEP, 2006).
Baas (1995) pondered whether cleaner production is a method or a philosophy and decided from
analysis of the UNEP statements (above) it is both philosophically significant and methodologically
grounded. Baas (1995) concluded that “the cleaner production approach can stimulate the
integration of environmental factors as part of a sound strategic management plan, and can be the
basic foundation for sustainable corporate operations.”
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Baas’ reflection on this highlights that there is no set method for implementing cleaner production
practices. The concept has evolved over the last 20 years in two ways broadly:
• By the ‘trial and error’ of businesses and groups of businesses to use cleaner technologies
and reduce waste outputs. See the ‘Examples of its application’ section below; and
• By concerted efforts of researchers as well as practitioners to disseminate the results around
the world. Baas (2005) devoted large sections of his thesis to the discussion of this and talks
of ‘the dissemination phase of cleaner production projects’. See the section ‘How successful
has it been?’ below.
UNEP provided implementation guidelines for signatories of the International Declaration on
Cleaner Production, in separate editions for Companies, Facilitating Organisations (e.g. academia)
and Governments. As the Declaration has been quite far reaching (see ‘Non-legally binding –
drivers’ section below), the guidance provided in the implementation guidelines documents is an
appropriate source from which to provide an insight into the current cleaner production approach.
Sub-divided into six principles are various defined actions and many other ‘activity suggestions’ (in
the ‘Facilitating Organisations’ guidelines) and activity toolboxes and implementation timelines with
blank spaces for businesses to complete (in all three sets of guidelines). See Table 6 for some of
the suggested defined actions.
Table 6. Suggested actions for implementing cleaner production. Text from UNEP, 2001.
Principle Action
Integration Using tools such as environmental performance evaluation,
environmental accounting and environmental impact, life cycle and
cleaner production assessments.
Awareness, Education Developing and conducting awareness, education and training
and Training
Research and
Development
programmes within the organisation.
Promoting a shift of priority from end-of-pipe to preventive strategies in
research and development policies and activities.
Supporting the development of products and services which are
environmentally efficient and meet consumer needs.
Implementation Setting challenging goals and regularly reporting progress through
established management systems.
What are the related terms?
“One can understand cleaner production as a transit towards Zero Emissions” (Kuehr, 2007, p.
1201).
The concepts of eco-efficiency and cleaner production are almost synonymous. The slight
difference between them is that eco-efficiency starts from issues of economic efficiency which have
positive environmental benefits, while cleaner production starts from issues of environmental
efficiency which have positive economic benefits (UNEP, 2009).
“Cleaner production is best known in North America as pollution prevention (P2)” (Wolnik and
Fischer, 2006).
The terms cleaner production and pollution prevention are often used interchangeably. The
distinction between the two tends to be geographic - the term pollution prevention tends to be used
in North America, while cleaner production is used in other parts of the world. Both cleaner
production and pollution prevention (P2) focus on a strategy of continuously reducing pollution and
environmental impact through source reduction - that is eliminating waste within the process rather
than at the end-of-pipe. Waste treatment does not fall under the definition of cleaner production or
P2 because it does not prevent the creation of waste (UNEP, 2009).
Industrial ecology and industrial metabolism are concepts for new patterns of industrial production
58

and are closely related to the cleaner production concept. Industrial ecology and industrial
metabolism are studies of industrial systems and economic activities, and their links to fundamental
natural systems (UNEP, 2009).
What definition should ZeroWIN adopt for use in industrial networks and why?
UNEP above, possibly with reference to the ‘four additional statements’.
• Who uses it in industrial networks?
All players from SMEs to the United Nations as described throughout this section.
Which industrial sectors?
As mentioned in Snow and Dickinson (2000), cleaner production is “a common practice right
throughout industry worldwide”.
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding
Legislation / Policy
measure
Regulatory measures,
accomplished via the
issuing of laws at state
level. Methods include
environmental
permitting, injunctions,
consents, inspection
and enforcement
activities.
Incorporation of cleaner
production methods in
Multilateral
Environmental
Agreements (MEAs) –
(legal agreements
governed by
international law).
Relevance to industrial
networks
High – “legislation has been the
cornerstone of EU environmental
policy since the launch of its first
five year environmental action
programme in 1973”; these action
programmes “have given rise to
over 200 pieces of normative
legislation for environmental
protection” (Hillary and Thorsen,
1999).
High – focus on three MEAs that
are especially important to
industry - the Kyoto Protocol to the
UN Framework on Climate
Change (UNFCCC), Basel
Convention on the Control of
Transboundary Movements of
Hazardous Wastes and their
Disposal, and the Stockholm
Convention on Persistent Organic
Pollutants (POPs) (UNEP, 2006).
Non-legally binding - drivers
Policy measure Relevance to industrial
networks
Self-regulatory
mechanisms:
1. EU’s Eco-
Management and Audit
Scheme (EMAS)
2. International
Environmental
Management System
(EMS) standard ISO
“EMAS and ISO 14001 are
becoming increasingly popular
amongst businesses.” Although
they do not specifically mention
cleaner production, “their ability to
drive a company’s management to
evaluate all options to improve
59
Comment
e.g. on effectiveness of implementation
“In Denmark at least, the normative
system of regulation appears, on
initial evaluation, not to have been
efficient at promoting cleaner
production” (Hillary and Thorsen,
1999).
Many synergies between the aims
of cleaner production and those of
these MEAs; For example, relating
to the Basel Convention MEA:
“Numerous case-studies around the
world are available for almost any
sector that generates hazardous
wastes for illustrating the ‘win-winapproach’
in cleaner production”
(UNEP, 2006).
Comment
e.g. on method and effectiveness of
implementation and scope to extend
See section 2.12 of literature review
on Environmental Management
Systems.
“There is a lack of evidence on the
environmental improvements from
self-regulatory approaches such as
EMAS and ISO 14001”.

14001
3. Environmental
reporting – increases
transparency and public
accountability
4. Voluntary
agreements
5. Eco-labelling.
UNEPs International
Declaration on Cleaner
Production (UNEP,
1998) – voluntary but
public commitment to
the strategy and
practice of cleaner
production.
environmental performance may
act as a catalyst to promote
cleaner production” (Hillary and
Thorsen, 1999).
High, although declining (?) –
Baas (2005) commented that the
declaration was published “As
policy development was not the
best output of the cleaner
production projects in the
1990s”.
60
“Some evidence to suggest that the
general public have neither concern
nor interest in reading
environmental reports.”
“Uncertain whether voluntary
agreements form an effective
means to promote cleaner
production” (Hillary and Thorsen,
1999).
Far reaching – 67 inaugural
signatories in 1998 and many
signing ceremonies at international
venues since then.
Non-legally binding - barriers
Policy measure Relevance to industrial
UNEP (2006): “There have been a number of barriers in the
promotion and adoption of cleaner production, encompassing
various issues such as
• A lack of cleaner production orientation in the national
policy and regulatory framework;
• A lack of financing;
• Problems in communication;
• Resistance to change;
• A lack of appropriate demonstrations of cleaner
production to prove its benefits;
• Inadequate training; and
• A lack of cleaner production-related information and
problems in accessing cleaner technologies.
networks
High
• What are its advantages? • What are its disadvantages?
• It is a proven concept and financial savings
and environmental benefits have been
demonstrated (see examples below).
• Cleaner production is mainly about the
reduction of negative effects and it has a
transitional function towards zero emissions,
which is the “next phase in the evolution in
the control and reduction of emissions from
industrial pollution sources” (Kuehr, 2007).
• Some concerns about ability to deliver lasting
benefits: “in-depth evaluation of the [New
Zealand 2-year cleaner production
demonstration] project raised significant
questions about the ability of traditional
cleaner production programme components
to bring about durable change” (Stone, 2006).
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.

The PRISMA project (1998-1991) involved 10 companies across 5 industrial sectors of the
Netherlands. PRISMA was based on a cleaner production assessment method developed by De
Hoo et al. (1990). This is summarised as a 1 page flow chart of considerations in 5 phases (in Baas,
2005, Annex V.1). Baas (2005) focused principally on the PRISMA project when discussing the
‘design of a structured cleaner production approach’: “on the whole, the PRISMA project
researchers found that with an innovation-oriented, waste prevention policy, remarkable results
could be achieved; companies could save extensively on the costs of energy and raw materials
while at the same time they could significantly decrease their environmental impacts.”
Baas (2005) further concluded that “The impact of the PRISMA project has been enormous. It has
laid the groundwork for further dissemination in the Netherlands, Europe (EUREKA programme,
1992) and via the UNEP/UNIDO cleaner production programmes to numerous other regions of the
world. Government organisations saw the dissemination of cleaner production as their new
responsibility.”
Baas (1995) reported on other early applications of cleaner production methods. The two first major
cleaner production research experiments, within Swedish (University of Lund and 7 industrial firms)
and Dutch Companies (Organisation for Technology Assessment and 10 industrial firms), sought to
identify opportunities for waste reduction and pollution prevention. Many ‘prevention options’ were
found and financial savings in both case studies were ‘substantial’. Baas (1995) went on to describe
‘second-generation cleaner production case studies’ which focused on “cross-national
dissemination of cleaner production concepts in Europe”. The two projects described reported
“similar environmentally friendly and financially beneficial results” for all partners, despite
differences in environmental policies and attitudes. The projects were:
• ‘PREPARE’ - involving Austria, Denmark and the Republic of Ireland; and
• ‘PROSA’ – involving Flanders (principally Belgian) and the Netherlands.
The Canadian Enviroclub initiative was developed to assist SMEs in improving their profitability and
competitiveness through enhanced environmental performance. Between 2000 and 2003 seven
Enviroclubs involving 78 SMEs from a variety of industrial sectors achieved the following savings:
• CAD$5.1 million annually (3.3 million Euros at 10.08.09 Exchange Rate);
• 17.100 tonnes of Greenhouse gases (CO2 equivalent);
• 708 tonnes of hazardous waste and 53 tonnes of toxic substances;
• 536.000m 3 of water; and
• 225.000 litres of petroleum, 300.000 litres of propane, 2.2 million m 3 of gas (Huppe et al.,
2006).
New Zealand’s ‘Target Zero’ cleaner production demonstration project involving 23 organisations
similarly resulted in improved performance, with savings of:
• NZ$4 million annually (1.9 million Euros at 10.08.09 Exchange Rate);
• 4.440 tonnes of CO2 emissions (tonne equivalents);
• 2.570 tonne equivalents of solid waste;
• 458.000 m 3 of water; and
• 44.170 GJ of fossil fuels and 965 MWh of electricity (Stone, 2006).
UNEP (2006) included amongst its conclusions that:
• Cleaner production, when applied correctly has proven that energy efficiency is a successful
concept for industry;
• Cleaner production can contribute significantly to reduce GHG-emissions; and
• Cleaner production has proven that ‘pollution prevention’ or ‘waste minimisation’ can be
relatively easily realised, especially in outdated industries in developing countries, resulting
in reduction of volume of toxicity of hazardous waste streams.
• How successful has it been in industrial networks?
Snow and Dickinson (2000) reported of cleaner production: “there are numerous case studies of
61

success stories where significant savings have been made over quite short periods of time”.
Baas (2005) analysed the dissemination of the cleaner production concept in the Netherlands and
internationally in the period 1985-2000. The development of the joint United Nations Industrial
Development Organisation (UNIDO) and United Nations Environment Programme’s (UNEP)
National Cleaner Production Centres (NCPCs) Programme is summarised: NCPCs promote the
cleaner production strategy and develop local capacity to achieve it. Since the first 10 centres were
established in 1994, NCPCs have been set-up in many countries around the world, hosted by
industrial, environmental or academic institutions.
• What are the key documents that discuss and report on it?
(Potential)
Benefit in
industrial
networks
Reference
Environmental Agenda 21 (1992): “Governments…should provide
economic or regulatory incentives, where appropriate, to
stimulate industrial innovation towards cleaner production
Economic,
Technical,
Operational
feasibility
• Discussion
methods”.
UNEP (2009): comprehensive explanations and guidance
on assessment, checking feasibility (environmental,
economic and technical) and implementation of cleaner
production in industry.
62
Comment e.g.
Very positive
benefit
demonstrated and
evidenced
Is this topic/concept one for use in ZeroWIN?
Yes, as a proven foundation from which to evolve zero waste methods.
Is it unproven e.g. not enough data?
No, however concerns raised as to the ability of cleaner production to deliver lasting benefits
(Stone, 2006).
Is it unlikely to be successful based upon previous experience?
No.
Baas, L.W., 1995. Cleaner production: beyond projects. Journal of Cleaner Production, 3(1-2), 55-
59.
Baas, L., 2005. Cleaner Production and Industrial Ecology: Dynamic Aspects of the Introduction and
Dissemination of New Concepts in Industrial Practice. Ph. D. Erasmus University Rotterdam.
Hillary, R. and Thorsen, N., 1999. Regulatory and self-regulatory measures as routes to promote
Cleaner production. Journal of Cleaner Production, 7(1999), 1-11.
Huppe, F., Turgeon, R., Ryan, T. and Vanasse, C., 2006. Fostering pollution prevention in small
businesses: the Enviroclub initiative. Journal of Cleaner Production, 14(2006), 563-571.
Kuehr, R., 2007. Towards a sustainable society: United Nations University’s Zero Emissions
approach. Journal of Cleaner Production, 15(2007), 1198-1204.
Snow, W. and Dickinson, J., 2000. The End of Waste: zero waste by 2020. Zero waste New
Zealand Trust. [Online]. Available at:
http://www.zerowaste.co.nz/assets/Reports/TheEndofWaste.pdf [accessed 6 August 2009]
Stone, L.J., 2006. Limitations of cleaner production programmes as organisational change agents. I.
Achieving commitment and on-going improvement. Journal of Cleaner Production, 14(2006), 1-14.
UNEP, 1992. Agenda 21: Environment and Development Agenda. Available at:
http://www.unep.org/Documents.Multilingual/Default.asp?documentID=52 [accessed 11 August
2009]

UNEP, 1998. The International Declaration on Cleaner Production. Available at:
http://www.unepie.org/scp/cp/network/declaration.htm [accessed 11 August 2009]
UNEP, 2001. International Declaration on Cleaner Production – Implementation Guidelines for
Facilitating Organisations. [Online]. Available at: http://www.unepie.org/scp/cp/network/declarationguidelines.htm
[accessed 11 August 2009]
UNEP, 2006. Applying Cleaner Production to MEAs: Global Status Report. [Online]. Available at:
http://www.unepie.org/shared/publications/pdf/DTIx0899xPA-ApplyingMEA.pdf [accessed 11
August 2009]
UNEP, 2009. Understanding cleaner production – related concepts. Available at:
http://www.unepie.org/scp/cp/understanding/concept.htm [accessed 11 August 2009]
Wolnik, C. and Fischer, P., 2006. Advancing pollution prevention and cleaner production –
Canada’s contribution. Journal of Cleaner Production, 14(2006), 539-541.
2.1.5 Pollution prevention (P2)
Pollution prevention is almost synonymous with cleaner production, which is the term used in
Europe. This section therefore simply explains the origin of pollution prevention and exactly what is
understood by the term; further discussion is in Section 2.1.4.
• What is pollution prevention (P2)?
Pollution prevention arose in the United States in the 1980s to address the growing complexity of
waste and pollution, with the aim of preventing the problems before they occurred. The Pollution
Prevention Act of 1990 became the U.S.’s enduring national environmental policy. Two relevant
excerpts from the text of the Pollution Prevention Act help to explain its purpose and intentions:
"There are significant opportunities for industry to reduce or prevent pollution at the source
through cost-effective changes in production, operation, and raw materials use. Such changes
offer industry substantial savings in reduced raw material, pollution control, and liability costs
as well as help protect the environment and reduce risks to worker health and safety.”
"Source reduction is fundamentally different and more desirable than waste management and
pollution control” (EPA, 2009).
What are relevant definitions?
U.S. Environmental Protection Agency:
“Pollution prevention (P2) is reducing or eliminating waste at the source by modifying
production processes, promoting the use of non-toxic or less-toxic substances, implementing
conservation techniques, and re-using materials rather than putting them into the waste
stream” (EPA, 2009).
Environment Canada:
“Pollution prevention is the use of processes, practices, materials, products or energy that
avoid or minimise the creation of pollutants and waste, and reduce the overall risk to human
health or the environment” (UNEP, 2009).
What are the key concepts?
One of the themes of the United Nations Environment Programme’s Sustainable Consumption and
Production Branch is cleaner production; within this theme the section on pollution prevention
explains that:
“The terms cleaner production and pollution prevention are often used interchangeably. The
distinction between the two tends to be geographic - the term pollution prevention tends to be
used in North America, while cleaner production is used in other parts of the world. Both
cleaner production and pollution prevention (P2) focus on a strategy of continuously reducing
pollution and environmental impact through source reduction - that is eliminating waste within
the process rather than at the end-of-pipe. Waste treatment does not fall under the definition of
cleaner production or P2 because it does not prevent the creation of waste” (UNEP, 2009).
63

The Integrated Pollution Prevention and Control (IPPC) Directive is EU legislation. Although it
includes the term pollution prevention, this reflects the overlap in its scope, rather than explicitly
meaning the concept of pollution prevention as defined above (which is known as cleaner
production in Europe).
What definition should ZeroWIN adopt for use in industrial networks and why?
U.S. EPA definition if any because it is their term.
• Discussion
Is this topic/concept one for use in ZeroWIN?
No – use of cleaner production instead.
Is it unproven e.g. not enough data?
Not Applicable.
Is it unlikely to be successful based upon previous experience?
Not Applicable.
EPA, 2009. Pollution prevention (P2). [Online]. Available at http://www.epa.gov/p2 [Last accessed
26 August 2009]
UNEP, 2009. Understanding cleaner production – related concepts. Available at:
http://www.unepie.org/scp/cp/understanding/concept.htm [Last accessed 26 August 2009]
2.1.6 Zero emissions
Related to but more advanced than cleaner production.
• What is zero emissions?
The zero emissions concept arose at the United Nations University (UNU) in Tokyo in 1994, with
the launch of the Zero Emissions Research Initiative (ZERI). The aim was to identify the
approaches and technologies required to create a new type of industrial system that would reduce
waste and harmful emissions to zero whilst at the same time increasing competitiveness (Kuehr,
2007).
Zero emissions as a concept is more advanced than precursors such as cleaner production and
pollution prevention, and more comprehensive than related concepts that have a narrower remit,
such as Individual/Extended Producer Responsibility, de-materialisation, factor X and ‘selling
service rather than product’. Zero emissions is closely related to zero waste.
The concept explored in this section should not be confused with the direct literal meaning of zero
emissions, which is to simply eliminate all harmful emssions of an operation or process. However,
as one of the key targets of ZeroWIN is to reduce greenhouse gas emissions, and because industry
requires power generation and therefore by demand when taking a LCA perspective, contributes to
power plant emissions, it is worth mentioning the work of the Zero Emissions Platform (ZEP). The
goal of this work is to enable zero CO2 emissions from European fossil fuelled power plants by
2020, and urgent take-up of Carbon Capture and Storage (CCS) technology is strongly advocated
in order to buy the time needed to establish low-carbon energy supply on a sufficient scale to
combat climate change (ZEP, 2007). For current developments of ZEP see
http://www.zeroemissionsplatform.eu.
What are the key concepts?
The key concepts are explored by Kuehr (2007):
• Use of resources within renewable limits;
• Final emissions within acceptable limits;
64

• Industries cluster into networks where everything will have a use;
• Industries re-engineer their manufacturing processes and design goods to eradicate waste;
• Consumer preference to purchase functions (service) over material goods.
Kuehr (2007) charted the progress of initiatives to control and reduce waste and emissions from
industrial polluting sources (Table 7). Old thinking was to deal with the problems that occurred (at
end-of-pipe) as a result of the production process, and took the form of Pollution Control regulations
and technologies. Cleaner production (and pollution prevention) was the next step, which
advocated measures such as the redesign of products and processes to reduce the amount of
emissions and waste created; this is regarded by Kuehr as a transit stage. Finally, zero emissions is
the final goal, whereby a closed-loop system and clustering of industries results in each industry’s
remaining wastes/by-products being used as inputs for others in the cluster.
Table 7. Comparison of waste and emission reduction schemes. From Kuehr, 2007.
Kuehr (2007) concluded that the feasibility and attractiveness of the concept of zero emissions has
been proven by the 11 years of work on it, and the role of the Zero Emissions Forum (ZEF) is to
take this work forward.
The Zero Emissions Forum, focused in Japan but with an international arm, fulfils a facilitating role
in zero emissions-related activities. The ZEF conducts research on what is required to realise a
zero emissions society and promotes inter-sector collaboration, including knowledge transfer and
capacity-building projects (Kuehr, 2007; ZEF, 2009).
An analysis of strategic approaches for sustainable development found a high potential for synergy
between zero emissions and other concepts, including eco-industrial parks (see section 2.2.1) and
the Natural Step Framework (see http://www.naturalstep.org). This analysis pronounced that alone
each concept lacks some of the 5 success criteria for sustainable regional development, and
therefore recommends that a joint approach would be advisable. Zero emissions was said to
concentrate on implementation towards set goals, and not adequately promote local motivation and
participation or monitor progress (Varga and Kuehr, 2007). This assessment confirms the need for
ZeroWIN’s comprehensive approach, beginning with this thorough review of existing methods for
their relevance to the project.
A comprehensive review of the various tools and approaches available for developing sustainability,
by the scientists who pioneered them, included zero emissions (Robert et al., 2002). This pointed to
a number of case studies from around the world documented by the UNU Zero Emissions Forum.
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
65

savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
Although there have been developments in Asian, European and North American industries which
have targeted zero emissions, Kuehr (2007) claimed that these were not developed with the
holistic, systems approach which is fundamental for the successful application of the zero
emissions concept. Kuehr argued that the zero emissions demonstration project for the
industrialised world simply does not yet exist.
• Discussion
Is this topic/concept one for use in ZeroWIN?
Yes, in the capacity of a guide and to learn lessons from its experience.
Is it unproven e.g. not enough data?
Yes.
Is it unlikely to be successful based upon previous experience?
No.
Kuehr, R., 2007. Towards a sustainable society: United Nations University’s zero emissions
approach. Journal of Cleaner Production, 15(2007), 1198-1204.
Robert, K.H. et al. (9 co-authors), 2002. Strategic sustainable development – selection, design and
synergies of applied tools. Journal of Cleaner Production, 10(2002), 197-214.
Varga, M. and Kuehr, R., 2007. Integrative approaches towards zero emissions regional planning:
synergies of concepts. Journal of Cleaner Production, 15(2007), 1373-1381.
ZEF, 2009. Website of the Zero Emissions Forum. Available at www.unu.edu/zef [Last accessed 7
September 2009]
ZEP, 2007. European Technology Platform for Zero Emission Fossil Fuel Power Plants (ZEP):
Strategic Overview. Available at: http://www.zeroemissionplatform.eu/website/docs/ETP%20ZEP/ZEP%20Concepts%20Final%20V2.pdf
[Last
accessed 31 May 2010]
2.1.7 Natural Capitalism
• What is Natural Capitalism?
Natural Capitalism is a fusion of two traditionally distinct paradigms: “Natural”, as in from nature and
free of human influence, and “Capitalism”, a human-invented concept which brings connotations of
a mix of artificially created themes based around industrial growth and profit, and linked to the
unsustainable use of natural resources. Together the words create a neo-capitalist approach to
business: capitalism in harmony with nature.
Varga and Kuehr (2007, p. 1373) included the term Natural Capitalism in a list of examples of
concepts borne of “the extensive discussions on sustainable development since the late 1980s”.
Kuehr (2007, p. 1202) described Natural Capitalism again as one of several “models towards
sustainability”.
What are relevant definitions?
Natural Capitalism is a business model based on responsible, sustainable practice while increasing
profits and gaining competitive advantage. It is based on four principles: increasing resource
productivity, eliminating waste, selling service rather than product and reinvestment in natural
capital.
What are the key concepts?
Natural Capital - the natural resources and ecosystem services that make possible all economic
activity, indeed all life. Ecosystem services include cycling nutrients and water, regulating
atmosphere and climate, providing pollination and biodiversity, controlling pests and diseases, and
assimilating and detoxifying society’s wastes (Lovins and Lovins, 2001).
66

Natural Capitalism is the new business model for the next industrial revolution, enabling
responsible, sustainable practice while increasing profits and gaining competitive advantage (Lovins
and Lovins, 2001). This paper reviewed the four principles of this model of Natural Capitalism:
• Increase resource productivity. “This will be the hallmark of the next industrial revolution and
the basis of competitiveness in the decades to come” (p. 101);
• Eliminate the concept of waste;
• Shift the focus of the economy from the making of things to the creation of service; and
• Reverse the planetary destruction now underway with programmes of restoration that invest
in natural capital.
Robert et al. (2002) discussed Natural Capitalism in their overview of various tools for strategic
sustainable development. This asserted that economic models must integrate traditional, profitoriented
motivations with the well-being of global ecosystems and the long term quality of life of all
people. It suggested that “future economic growth will be limited by natural capital rather than
human-made capital” (p. 211), and that it will be necessary to apply the principles of Natural
Capitalism “to both short and long term business and governmental decisions as part of an overall
societal strategy” (p. 212).
What are the related terms?
Factor 4 and Factor X, resource productivity and eco-efficiency – encompassed in the first principle
of Natural Capitalism – Hawken et al. (1999) expounded eco-efficiency as insufficient and even
potentially disastrous if used on its own.
Zero waste – strong overlap with the second principle of Natural Capitalism (section 2.1.1).
Selling service rather than product – the essence of the third principle of Natural Capitalism (section
2.2.5).
What definition should ZeroWIN adopt for use in industrial networks and why?
Definition presented above, as it is a succinct account of Lovins and Lovins’ (the founders)
explanation of the model.
• What are its advantages? • What are its disadvantages?
It is a more complete approach to responsible
entrepreneurship than many of the more specific
concepts in this review.
67
It is more philosophical than pragmatic; to apply
Natural Capitalism requires use of practical
approaches and tools for each of the principles,
which are covered as separate topics in this
review.
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
These are examples of the use of Natural Capitalism in industry, but not in networks.
Lovins and Lovins’ Rocky Mountain Institute employed new design thinking and new technology to
produce the “Hypercar SM ” Sport-Utility Vehicle. Using a hydrogen fuel cell and electric propulsion
motors, and advanced composite materials such as carbon fibre, it is spacious, high performing and
reliable, capable of 100 Miles Per Gallon Equivalent (Lovins and Lovins, 2001).
The Company Interface decided to implement the principles of Natural Capitalism with the release
of a new product, “Solenium” in 1999. This floor covering is almost completely remanufacturable
into identical carpet, it is non-toxic, virtually stain-proof and easy to clean. It is four times as durable,
one-third less materials-intensive and is claimed to be climate neutral. Interface introduced a
programme to eliminate waste in its worldwide operations. It also prefers to sell a “floor covering
service” rather than just the carpet, and the company has initiated a programme to grow its

feedstocks and ensure that its suppliers practice sustainable farming. In the first four years
revenues doubled and operating profits tripled (Lovins and Lovins, 2001).
• What are the key documents that discuss and report on it?
(Potential) Benefit in Reference
industrial networks
Environmental and Economic Hawkens et al., 1999;
Lovins and Lovins, 2001.
• Discussion
68
Comment
Founders of the Natural
Capitalism model – strong
advocates of its use, but
possibly not objective.
Is this topic/concept one for use in ZeroWIN?
No, it is a conceptual approach akin to the zero waste philosophy, though more focused on the
natural environment than the industrial network. It is best thought of as an alternative to ZeroWIN.
Some of the principles of Natural Capitalism are very relevant, but are covered individually in other
sections of this review.
Is it unproven e.g. not enough data?
Partly - insufficient evidence of the application of the model seen to confirm it as proven.
Is it unlikely to be successful based upon previous experience?
Insufficient evidence, as above.
Hawken, P., Lovins, A.B. and Lovins, L.H., 1999. Natural Capitalism – creating the next industrial
revolution. Rocky Mountain Institute. Available (in part) at
http://www.natcap.org/sitepages/pid20.php [Accessed 21 August 2009]
Kuehr, R., 2007. Towards a sustainable society: United Nations University’s Zero Emissions
approach. Journal of Cleaner Production, 15(2007), 1198-1204.
Lovins, L.H. and Lovins, A.B., 2001. Natural Capitalism: Path to Sustainability? Corporate
Environmental Strategy, 8(2), 99-108.
Robert, K.H. et al. (9 co-authors), 2002. Strategic sustainable development – selection, design and
synergies of applied tools. Journal of Cleaner Production, 10(2002), 197-214.
Varga, M. and Kuehr, R., 2007. Integrative approaches towards Zero Emissions regional planning:
synergies of concepts. Journal of Cleaner Production, 15(2007), 1373-1381.
2.2 METHODS UNDERPINNING THE BROAD APPROACHES
These methods implement the approaches in sections 2.1
2.2.1 Eco-industrial parks
Also known as Resource Recovery parks; related to industrial ecology (section 2.1.2), cleaner
production (section 2.1.4) and industrial symbiosis (section 2.2.2).
• What are eco-industrial parks?
The U.S. Consultancy Indigo Development claims to have introduced the concept of eco-industrial
parks (EIPs) to the U.S. Environment Protection Agency in 1993.

Baas (2005) states that “eco-industrial parks are applications of industrial ecology”, and explains
their purpose and effect quite succinctly:
“They utilise material flow assessments in order to make decisions about coupling resource
streams between different companies so that that they can exchange waste materials, raw
materials and energy among each other, thereby reducing the net inputs and outputs of the
industrial park” (p. 215).
The concepts of EIPs and industrial symbiosis (section 2.2.2) are closely related. Essentially
industrial symbiosis is the idea of creating resource (by-products, water, energy) synergies between
industries through geographic proximity and collaboration, and EIPs are real-world manifestations of
this.
EIPs are regarded as broader than industrial symbiosis: industrial symbiosis deals specifically with
physical exchanges of materials and energy, but this is only one of the set of environmental
planning and management strategies EIPs employ. EIPs can include the sharing of infrastructure
and knowledge.
What are relevant definitions?
Lowe (1997):
“An eco-industrial park is a community of manufacturing and service businesses seeking
enhanced environmental and economic performance through collaboration in managing
environmental and resource issues including energy, water, and materials.”
Lowe (2001):
“An eco-industrial park or estate is a community of manufacturing and service businesses
located together on a common property. Member businesses seek enhanced environmental,
economic, and social performance through collaboration in managing environmental and
resource issues.”
What are the key concepts?
The conceptual background of eco-industrial parks lies in cleaner production and industrial ecology
(Varga and Kuehr, 2007).
The ZeroWIN project ‘Description of Work’ document (Version 5, 15.04.2009) states that EIPs will
be one of the strategies used to implement the concept of ZeroWIN through inter-company
collaboration and by-product exchange. ZeroWIN’s focus will be the transnational European level,
and the ZeroWIN project will examine practical options for by-product exchange both:
• Between sectors (e.g. construction-electronics and electrical equipment); and
• Across geographical distances, where it pays off economically and environmentally despite
the necessary transportation.
Lowe (1997) outlined possible strategies for EIPs in creating by-product exchanges, commenting
that other researchers have emphasised the development of networks for by-product exchange
among co-located companies.
Lowe’s (2001) eco-industrial park handbook provides a comprehensive account of all aspects of
EIPs, from their foundations, through planning and development of EIPs, to finance, policy and
management considerations. The 2001 handbook was designed for Asian developing countries, of
whom Lowe asserts “the strongest creative force in eco-industrial development seems to be
emerging”. It is based on the first edition from 1995, which was created for the U.S. Environmental
Protection Agency. To pick one potentially useful section (of many), chapter 10, section 7 (following
10.6 on EIP EMSs) outlines an evaluation framework for eco-industrial parks, that combines
economic, technical, social, and environmental performance objectives. Of particular note are the
detailed potential objectives set out for economic performance, and the Environmental Performance
Framework (contained in Appendix 2).
69

Varga and Kuehr (2007) offered six starting points and models for developing EIPs. In general they
urge that EIPs should:
• Be integrated into their surrounding natural systems;
• Close material flows towards cycles; and
• Maximise water and energy efficiency through facility design, co-generation, energy
cascades, etc.
The Australian Research Council with industry support funded an extensive research project on
“Enhancing Regional Synergies through the Application of Industrial Ecology Strategies for
Sustainable Development in the Kwinana Industrial Area”, conducted at the Centre of Excellence in
Cleaner Production (CECP) at Curtin University of Technology. The first output of this project
thoroughly addressed the theory and concepts of industrial ecology, and the role of eco-industrial
parks, and made an assessment of 22 industrial symbiosis developments across four continents
(Europe, North America, Asia, Australia) (CECP, 2007). Subsequent outputs that built on this
baseline study examined the barriers to resource synergy development and provided enabling
mechanisms to enhance synergies (Harris, 2008).
This work summarised how industrial symbiosis and eco-industrial parks are only one of the (three)
levels at which industrial ecology operates – the inter-firm level, concerned with the industrial sector
(in between the ‘firm’ level, concerned with eco-design and ‘green’ accounting, and the
‘regional/global’ level, concerning industrial metabolism). In terms of the practical application of
industrial ecology, it is considered to have been explored in two directions. One is the local
application of the principles of industrial ecology in the development of eco-industrial parks. The
other is the search for reduced resource intensity of production and consumption at the societal
level through de-materialisation, and associated decarbonisation and transition to service economy
(CECP, 2007).
Van Beers et al. (2007) reported on the benefits and success factors for synergistic approaches,
focusing on two industrial areas in Australia. Successful industrial symbiosis projects are dependent
on three main aspects:
• A convincing business case – evidence that the opportunity to reduce costs and generate
revenue or access to vital resources, and to produce environmental benefits, outweighs the
project costs and risks, jointly for more than one business;
• A licence to operate – government approval and preferably also local community approval;
• Proven technology – those necessary to realise the potential synergy (van Beers et al.,
2007; CECP, 2007).
The role of a research institute in the process can include:
• Facilitation between involved companies;
• Detailed assessment of the by-product stream with regard to volumes and composition;
• Assessment and selection of potential uses and potential combinations thereof;
• Evaluation of pre-processing and source treatment needs;
• Concept design for the synergy project (technology and infrastructure);
• Preliminary assessment of economic, technical, environmental and social feasibility; and
• Assistance in detailed business planning for implementation (van Beers et al., 2007, p. 835).
Reflecting on the lessons learned from a review of synergies in 18 industrial regions it was noted
that the process for comprehensive identification of all potential synergies in a given industrial
region needs proper facilitation and resourcing, requiring input from all parties at every stage. The
process can be very taxing on the participating companies’ human resources, often competing with
usual business activities.
Of the 18 industrial regions reviewed, only two employed tools to aid the identification of synergy
opportunities. This implies that current regional synergies efforts only identify a small number of
potential, opportunities and, thus, a simpler, straightforward approach is needed to promote and
70

advance the process for development of regional synergies (van Beers et al., 2007, p. 836).
The Centre for Sustainable Resource Processing in Australia has developed two resources to
enhance industrial synergy working:
• A web-based compendium of synergy examples from around the world:
www.csrp.com.au/database; and
• A practically-oriented toolkit, providing tools for the identification and development of synergy
opportunities (see Figure 7), and a methodology to assess the technology needs of the
opportunities (van Beers et al., 2007).
Figure 7. Regional eco-efficiency opportunity assessment methodology. From van Beers et al.,
2007.
Lowe (1997) describes Resource Recovery facilities as an anchor to the eco-industrial park:
discards or wastes are fed into and managed in the resource recovery facility and then may find
their way (back) into the eco-industrial park as inputs. Re-use, recycling, remanufacturing and
composting operations are likely to be found in the resource recovery facility.
What definition should ZeroWIN adopt for use in industrial networks and why?
Variation on Lowe (2001):
“An eco-industrial park is a community of manufacturing and service businesses located on a
common property. Member businesses seek enhanced environmental, economic, and social
performance through collaboration in managing environmental and resource issues.”
• Who uses it in industrial networks?
Industries themselves, where co-located and business types and management ethos lend
themselves to a symbiotic approach to reaching their individual economic and environmental goals.
Which industrial sectors?
Various – see examples.
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding
71

Legislation / Policy
measure
None
Relevance to industrial networks
Non-legally binding - drivers
Policy measure Relevance to industrial networks
Environmental Specific to each EIP - see examples below.
Potential economic
incentives associated with
improving efficiency and
reducing raw material input
and waste output.
Common economic benefits applicable to any organisation,
including reduced and avoided costs, increased revenue, improved
security of obtaining materials/energy, improved quality of
materials, improved reputation.
Social/Community Increased employment, and benefits associated with the improved
local environment conditions, e.g. reduced waste landfilled, effluent
discharge to local waterways, and increased availability of water
(van Beers et al., 2007; CECP, 2007).
Non-legally binding - barriers
Policy measure Relevance to industrial networks
Technical The extent to which the different industries that are co-located, or
the difference in their scale of operations, do not fit together,
precluding cooperation such as exchange of by-products.
Information A lack of understanding of the concept and potential of EIPs.
Poor communication links with neighbouring businesses.
Economic Lack of financial incentives, for example in industries where waste
and by-product disposal is already low.
Cost (as well as effort and support of management) of engaging with
neighbouring businesses to identify synergy potential.
Regulatory The current regulatory structure of the individual industries may
prevent linking their operations, for example on definitions of byproducts
as wastes or due to quality control constraints.
Motivational Unwillingness to cooperate with other industries could descend from
fear of losing competitive advantage; unwillingness to commit to
shared projects or resources could descend from fear of losing
sovereignty or control.
General Harris (2004, p. 35) concluded that it was often a combination of
small barriers that hinders industrial symbiosis rather than a specific
one.
CECP, 2007.
Based on the experiences of the Kwinana industrial area, van Beers et al. (2009) identified nine
broad categories of drivers and barriers specifically for inorganic by-product re-use among colocated
industries (e.g. bauxite residue, fly-ash, kiln dusts, gypsum, slag):
• Regulation;
• Economics;
• Community;
• Technology;
• Transportation;
• Confidentiality and commercial issues;
• Risks and liabilities;
• Industry focus and priorities; and
• Region-specific issues (see van Beers et al., 2009 for a discussion of each in turn).
• What are its advantages? • What are its disadvantages?
72

Reduced waste through by-product exchange
and cost through synergistic approaches.
Potential broader environmental and social
benefits.
73
The barriers above.
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
Varga and Kuehr (2007) asserted that the Danish town of Kalundborg is “the most cited example of
a successful EIP”, where “the participating enterprises achieved a maximum grade of efficiency: all
by-product flows are directed forward to users converting them into products, which then leave the
EIP system.” The authors go on to note that there are other examples of eco-industrial parks in the
Philippines, Thailand, India, China and Japan.
Baas (2005) began his review of EIPs with a section entitled “Kalundborg, the world’s industrial
ecology reference”, and states that “the Kalundborg situation has been copied all over the world
since the mid-1990s” (p. 217). Some of the bilateral exchanges found in Kalundborg are presented:
• The oil refinery provides the plasterboard company with excess gas;
• The power station supplies the city with steam for the district heating system;
• The hot cooling water from the power plant is partly redirected to a fish farm;
• The power plant uses surplus gas from the refinery in place of coal;
• Sludge from the biotechnological company is used as fertiliser in nearby farms;
• A cement company uses the power plant’s desulphurised fly ash;
• The refinery’s desulphurisation operation produces sulphur, which is used as a raw material
in the sulphuric acid production plant; and
• The surplus yeast from the biotechnological company is used by farmers as pig feed (p.
217).
Baas (2005) also described the INES project (1994-1997) and the INES Mainport 1999-2002
Project in the Rotterdam Harbour area, Netherlands. The latter was progressive in that it created its
sub-project agenda based on previous studies’ themes, to help situate them appropriately and learn
from the earlier work.
Kwinana Industrial area in Western Australia was reported to “compare favourably with wellregarded
international examples (e.g., Kalundborg (Denmark), Rotterdam (Netherlands), in terms of
the level and maturity of the industrial involvement and collaboration” (Van Beers et al., 2007, p.
840). Forty-seven resource synergies were identified at Kwinana: 32 involved by-product re-use
(examples include re-use of gypsum, lime-kiln dust and Silica fume; 15 were utility (water or energy)
synergies, including a cogeneration plant working in harmony with the oil refinery, resulting in an
estimated reduction of 170.000 tonnes of CO2 emissions per annum. In another industrial area near
the east coast of Australia, Gladstone, five synergies have been realised, including fly-ash re-use
from the power station and significant re-use of water (Van Beers et al., 2007).
Kuehr (2007) illustrated the eco-industrial park of Kawasaki, Japan, and also referred to Fujisawa
eco-industrial park as good examples of collaborative initiatives to implement zero emissions (see
section 2.1.6).
The Fujisawa eco-industrial park illustrates the important role technology can play in developing
eco-industrial projects. The technologies used in this project, when compared to traditional
urban/industrial systems, are estimated to achieve reductions of:
• CO2 emissions of 30%;
• energy consumption of 40%;
• waste discharge of 95%; and
• water consumption of 30% (Morikawa, 2000).

Some of the main technologies incorporated in the park and their function within the system:
• A fluidised-bed gasification combustion and ash-melting system converts industrial and
municipal waste, agricultural waste, sewage, and plastic into commercially viable outputs of
ammonia, methane and hydrogen from combustion gases. The combustion provides heat
for power generation;
• A flue gas treatment system treats the gases to remove nitrogen and sulphur oxides, that are
then used as agricultural fertilisers;
• Solar photovoltaic cell systems and wind turbine generators are used on rooftops for electric
power generation and heating water;
• Solids are removed from waste water and sent through the sludge treatment process, while
the remaining gray water is used to flush toilets and water lawns, gardens, and landscaping.
Sludge is treated for composting to be used for agriculture;
• A new fuel cell technology converts methane or hydrogen gas generated by the waste
gasification and combustion system into electric power through chemical reactions; and
• A direct water supply system consists of a series of rooftop water catchments and storage
basins to reduce energy costs associated with pumping of groundwater sources (Morikawa,
2000).
The Kokubo industrial park is a 150-acre site housing 23 tenants and about 5.500 employees. Its
tenants consist mainly of electronic products and parts manufacturers, including Yokogawa
Electronics, Panasonic, Fujitsu and Pioneer. Since its creation in 1975 Kokubo has been gradually
evolving into an eco-industrial park. The Kokubo eco-industrial park is unique in that it is entirely
self-evolving and self-managed – the group of industrial tenants driven being by their desire to
reduce costs and improve environmental performance.
After forming a study group to analyse the waste disposal operations, some initiatives have been:
• A waste paper collection and recycling system for the entire park;
• Recycling wood chips and plastic to make Refuse-Derived Fuel (RDF) for power generation
within the park. The ash from the power generators was then sold to a nearby cement
factory. The park produced 4.300 m3 of this waste every year and used to spend more than
$300.000 on treatment. The cost for the RDF facility was $1,5 million and was expected to
be paid off in a couple of years; and
• Implementing a food-composting programme utilising the by-products of their 2.500 personper-day
cafeteria. Compost is produced and sold to nearby farmers from whom they buy
their food (Morikawa, 2000).
The Australian Centre for Sustainable Resource Processing has created a comprehensive listing of
synergy examples from around the world, and is available at www.csrp.com.au/database. Many of
these were well described and evaluated by CECP (2007).
• How successful has it been in industrial networks?
The examples above illustrate the success; EIPs by nature are industrial networks.
Van Beers et al. (2007, p. 836) remarked that:
“There is sufficient evidence that a committed approach to industrial synergies ultimately
brings both economic and environmental benefits to the industries and communities involved”.
Has there been a different outcome in different sectors?
In particular those in which ZeroWIN is most interested: automotive, construction, electronics and photovoltaics.
This is likely; a deeper analysis of comparative success could be justified given the key role of EIPs
in ZeroWIN.
• What are the key documents that discuss and report on it?
(Potential) Benefit in Reference Comment
74

industrial networks
Environmental, Economic,
Social, Technical feasibility:
EIP Evaluation Framework
Economic
Feasibility
Socia l
Consequence
Modified from D. Cheel
Technical
Feasibility
Lowe, 2001
CECP, 2007
Environmental
Performance
Environmental Performance
MEASURES
EMISSIONS
EIP design
objective
USAGE
INTERACTIONS ecosystem
75
neighbors
Good performance evaluation
framework; detailed criteria for
economic and environmental
elements
Environmental Performance Framework
water
energy
air
liquid
material
solid
physical
setting
usage
emissions
interactions
© 1995 Indigo Development
Figure 8. Interrelationship among elements of total performance evaluation of an eco-industrial
park. From Lowe, 2001 (ch. 10, p. 14).
Social Lowe, 2001 Included in Lowe’s (2001)
definition of EIPs – lacks
evidence.
• Discussion
Is this topic/concept one for use in ZeroWIN?
The basic principles of EIPs (e.g. co-location and collaboration) are sound, and are likely to be
central to the ZeroWIN approach. There is a strong overlap between EIPs and industrial symbiosis.
Is it unproven e.g. not enough data?
No, although feasibility for specific ZeroWIN sectors/partners does not necessarily follow.
Is it unlikely to be successful based upon previous experience?
No.
Baas, L., 2005. Cleaner Production and Industrial Ecology: Dynamic Aspects of the Introduction and
Dissemination of New Concepts in Industrial Practice. Ph. D. Erasmus University Rotterdam.
Centre of Excellence in Cleaner Production, 2007. Regional Resource Synergies for Sustainable
Development in Heavy Industrial Areas: An Overview of Opportunities, and Experiences. Curtin

University of Technology, Perth. Available at: http://cleanerproduction.curtin.edu.au/research/ [Last
accessed 24 September 2009]
Harris S., 2008. Mechanisms to Enable Regional Resource Synergies: Facilitating Structures and
Operational Arrangements. Centre of Excellence in Cleaner Production, Bulletin No. 3. Curtin
University of Technology, Perth. Available at: http://cleanerproduction.curtin.edu.au/research/ [Last
accessed 24 September 2009]
Kuehr, R., 2007. Towards a sustainable society: United Nations University’s Zero Emissions
approach. Journal of Cleaner Production, 15(13-14), 1198-1204.
Lowe, E., 1997. Regional Resource Recovery and Eco-Industrial Parks: An Integrated Strategy.
Presented at the Symposium on Industrial Recycling Networks at Karl-Franzens-Universität Graz,
April 28-29, 1997. Available at http://www.indigodev.com/Eipresrecov.html [Accessed 15 August
2009]
Lowe, E.A., 2001. Eco-industrial Park Handbook for Asian Developing Countries. Available at:
http://indigodev.com/Handbook.html [Accessed 15 August 2009]
Morikawa, M., 2000. Eco-Industrial Developments in Japan. Indigo Development Working Paper #
11. Available at: http://www.indigodev.com/IndigoEco-Japan.doc [Accessed 14 August 2009]
Van Beers, D., Corder, G.D., Bossilkov, A. and van Berkel, R., 2007. Regional synergies in the
Australian minerals industry: Case-studies and enabling tools. Minerals Engineering, 20(9), 830-
841.
Van Beers, D., Bossilkov, A. and Lund, C., 2009. Development of large scale reuses of inorganic
by-products in Australia: The case study of Kwinana, Western Australia. Resources, Conservation
and Recycling, 53(7), 365-378.
Varga, M. and Kuehr, R., 2007. Integrative approaches towards Zero Emissions regional planning:
synergies of concepts. Journal of Cleaner Production, 15(13-14), 1373-1381.
2.2.2 Industrial symbiosis
Also known as ‘Resource Synergies’, including ‘by-product re-use’ and ‘utility (water and energy)
synergies’.
• Industrial symbiosis
What are the key concepts?
Industrial symbiosis is an example of the practical application of the concepts in the field of
industrial ecology. The concept of mutualism from the natural ecosystem analogy is applied to the
systems view of an industrial metabolism (Gredel and Allenby, 1995). Material and energy flows,
from the factory level to national and global scopes, through industrial networks are examined from
a sustainability perspective. Traditionally unrelated industries are approached to promote the
exchange of by products, water, energy and other materials. The premise is to restructure industrial
networks to promote resource cascades, industry feeding industry, to reduce waste and promote
sustainability (Chertow, 2000). To distinguish industrial symbiosis from more basic, coincidental
exchanges of waste products, Chertow (2007) proposed the “3-2 heuristic” criterion. This criterion
states at least three different entities must be exchanging at least 2 kinds of waste to be a basic
industrial symbiosis.
What definition should ZeroWIN adopt for use in industrial networks and why?
Chertow (2004) gave the definition “industrial symbiosis engages traditionally separate industries in
a collective approach to competitive advantage involving physical exchanges of materials, energy,
water and/or by-products. The keys to industrial symbiosis are collaboration and the synergistic
possibilities offered by geographic proximity”. This highlights the commercial potential of industrial
symbiosis, a prerequisite of waste entrepreneurship, and can easily be interpreted from the
perspective of a supply chain. As such this definition is probably most applicable for ZeroWIN.
• Who uses it in industrial networks?
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The term was initially coined for the case study of the Kalundborg municipality in Denmark. The
Kalundborg model is referred to extensively in the literature. Eleven physical linkages comprise
much of the tangible aspect of industrial symbiosis in Kalundborg described in Figure 9. The town’s
four main industries include a 1,500-megawatt coal-fired power plant, a large oil refinery, a maker of
pharmaceuticals and enzymes and a plasterboard manufacturer. Several actors in Kalundborg
trade and make use of waste streams and energy resources, and others turn by-products into raw
materials (Ehrenfeld and Gertfer, 1997).
Figure 9. The entities and flows in Kalundborg. From Ehrenfeld and Gertfer, 1997.
Industrial symbiosis in Kalundborg evolved over time, a number of independent exchanges
developed into a complex web of symbiotic interactions among five co-located companies and the
local municipality (Jacobsen, 2006). From this initial case study, several models for industrial
symbiosis have been developed, categorised by proximity and complexity. Applying the principles of
industrial symbiosis to promote sustainability is challenging. The systematic flows of energy and
resources across industrial networks are not exclusive from cognitive, structural, political, spatial
and temporal constraints, but embedded within them (Baas and Huisingh, 2008). Layered, dynamic
networks interact with their environment, feeding back into each other to form complex systems.
These are the focus of much of the current research in industrial ecology and industrial symbiosis
(Dijkema and Basson, 2009).
Waste exchanges
Waste exchanges were established to facilitate the recycling and re-use of industrial waste using a
commercial vehicle. Through these exchanges the by-products of an industrial process can become
the raw materials for others (US EPA, 1994). Exchanges of by-products within an industrial park
could be supported by regional or state waste exchange programmes (Lowe, 1997). Chertow
(1999) also noted that the waste exchange concept could be expanded in some cases to develop
industrial symbiosis. An example of a currently operating waste exchange is the online resource
www.eastex.co.uk where materials available or wanted are advertised by area or material type.
Which industrial sectors?
Industrial symbiosis in beer production
Since the mid-1990s, industrial symbiosis in beer production has been a leading case of the Zero
Emissions Research Initiative (ZERI). In a traditional beer factory, spent grains represent the larger
part of the breweries' by-products (circa 18 kg per hecto litre of beer). Because grains are rich in
fibres and protein, ZERI proposes them to be used to farm mushrooms. With relatively
unsophisticated equipment, it is possible to separate the enzymes generated by the breakdown of
lingo-cellulose and the protein-enriched substrate resulting from the process of mushroom growing.
77

Besides being a more environmentally friendly solution, mushrooms have higher market value than
animal fodder. The resulting five categories of enzymes can also be sold as additives in soaps.
Overall, by recovering the protein, which has traditionally been considered waste in the beer
industry, breweries could generate new sources of income and, eventually, new businesses (Pauli,
1998).
Industrial symbiosis in industrial conglomerates
The Chinese Guitang Group, an industrial conglomerate that operates one of the largest sugar
refineries in the country, presents a more compelling example of industrial symbiosis. By installing
downstream companies to utilise nearly all by-products of sugar production, the group not only
reduced environmental emissions and disposal costs but also improved sugar quality and
generated new revenues. The Guitang complex consists of interlinked production of sugar, alcohol,
cement, compound fertiliser and paper, including recycling and re-use of by-products and waste.
Zhu (2007) commented that: “By choosing to approach its waste as a business opportunity, the
Guitang Group solved a traditional problem by using the sludge as the calcium carbonate (CaCO3)
feedstock to a new cement plant. This, in turn, generated profits that helped offset the higher cost of
the carbonation and increased the company’s competitiveness in the sugar market”. In order to
maintain its competitiveness in the global sugar market, while optimising the system, the Group has
to influence continuously both downstream and upstream operations. It guarantees its supply base,
for instance, through technological and economic incentives to farmers (Zhu, 2007).
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
See eco-industrial parks (Section 2.2.1).
• How successful has it been in industrial networks?
The National Industrial Symbiosis Programme (NISP) is a free programme that uses industrial
symbiosis to develop social, environmental and economic benefits for businesses in the UK. It is
partly funded by the government through their Business Resource Efficiency and Waste programme
(NISP, 2007). In one case study, NISP facilitated resource exchanges between three parties, a
manufacturer of garage doors, a plastics company and a sealant company. The exchanges of
waste and surplus products resulted in a saving of 32 tonnes of CO2. In the first three years of NISP
3,8 million tonnes of waste was redirected from landfill, 4,5 million tonnes of CO2 and 9,2 million
tonnes of water were saved across the UK (NISP, 2009). Given such potential results, incorporating
industrial symbiosis when developing the ZeroWIN concept could prove very effective.
• Discussion
Is this topic/concept one for use in ZeroWIN?
Yes.
Is it unproven e.g. not enough data?
No.
Is it unlikely to be successful based upon previous experience?
No.
Baas, L.W. Huisingh, D, 2008. The synergistic role of embeddedness and capabilities in industrial
symbiosis: illustration based upon 12 years of experiences in the Rotterdam Harbour and Industry
Complex. Progress in Industrial Ecology – An International Journal. 5(5-6), 399-421.
Chertow, M.R. 2000. Industrial Symbiosis: Literature and Taxonomy. Annual Review of Energy and
the Environment. 25, 313-337.
Chertow, M.R. 2004. Industrial Symbiosis. Encyclopaedia of Energy. 3, 407-415.
Chertow, M.R. 1999. The Eco-industrial park Model Reconsidered. Journal of Industrial Ecology.
2(3), 8-10.
78

Chertow, M.R. 2007. “Uncovering” Industrial Symbiosis. Journal of Industrial Ecology. 11(1), 11-30.
Dijkema, P.J. Basson, L. 2009. Complexity and Industrial Ecology, Journal of Industrial Ecology.
13(2), 157-164.
Eastex. 2009. Waste Exchange. Available at: http://www.eastex.org.uk [Accessed 15 August 2009]
Ehrenfeld, J. Gertler, N. 1997. Industrial Ecology in Practice the Evolution of Interdependence at
Kalundborg. Journal of Industrial Ecology.1(1), 67-79.
Gredel, T.E. Allenby, B.R. 1995. Industrial Ecology, 2 nd Ed, Prentice Hall International Series in
Industrial and Systems Engineering
Jacobsen, N.B. 2006. Industrial Symbiosis in Kalundborg, Denmark A Quantitative Assessment of
Economic and Environmental Aspects. Journal of Industrial Ecology.10(1-2), 239-255.
Lowe, E.A. 1997. Creating by-product resource exchanges: Strategies for eco-industrial parks.
Journal of Cleaner Production. 5(1-2), 57-65.
National Industrial Symbiosis Programme. 2007. About NISP [Online]. Available at:
http://www.nisp.org.uk/about_us.aspx [accessed 29 September 2009]
National Industrial Symbiosis Programme. 2009. IBCs and Industrial Symbiosis [Online].
Available at: http://www.nisp.org.uk/article_main.aspx?feedid=casestudy&itemid=24
[accessed 29 September 2009]
Pauli, G. 1998. Upsizing: The Road to Zero Emissions - more jobs more income and no pollution.
Sheffield: Greenleaf.
US EPA. 1994. Review of Industrial Waste Exchanges. Washington DC: US Environmental
Protection Agency, Office of Solid Waste.
Zhu, Q. Lowe, E.A. Wei, Y. Barnes, D. 2007. Industrial Symbiosis in China: a Case Study of the
Guitang Group. Journal of Industrial Ecology. 11(1), 31-42.
2.2.3 Product stewardship
2.2.3.1 Extended Producer Responsibility
2.2.3.2 Individual Producer Responsibility
• What is Extended Producer Responsibility (EPR), Individual Producer Responsibility
(IPR)?
What are relevant definitions?
• EPR is “a policy principle to promote total life cycle environmental improvements of product
systems by extending the responsibilities of the manufacturer of the product to various parts
of the entire life cycle of the product, and especially to the take-back, recycling and final
disposal of the product.” (Lindhqvist, 2000, p. 154).
• EPR is “an environmental policy approach in which a producer’s responsibility [financial
and/or physical] for a product is extended to the post-consumer stage of a product’s life
cycle” (OECD, 2001, p. 9).
• EPR is a policy instrument (UNU, 2008, p. 298).
• IPR is described as: “A producer bears an individual financial responsibility when he/she
initially pays for the end of life management of his/her own products. A producer bears an
individual physical responsibility when 1) the distinction of the products are made at
minimum by brand, and 2) the producer has the control over the fate of their discarded
products, with some degree of involvement in the organisation of the downstream operation.
A producer is responsible for aggregation and provision of the property of his own products
and product systems (individual informative responsibility).” (Tojo, 2004, p. 270-274).
• IPR is “an approach that makes producers responsible for recycling their own products once
they have been collected” (HP, 2009).
• IPR is “a policy tool that provides incentives to producers for taking responsibility of the
entire lifecycle of his/her own products, including end of life” (ERP, 2007).
79

What are the key concepts?
Life cycle thinking (see section 2.3.1), financial responsibility, physical responsibility, informative
responsibility, liability, take back, eco-design (see session 2.1.3).
What definition should ZeroWIN adopt for use in industrial networks and why?
• EPR is a policy principle to promote life cycle environmental improvements of product
systems by extending the responsibility of the producers beyond the production phase and
particularly to the end of life management of products.
This definition should be adopted because 1) it gives a general and policy-oriented outlook of EPR;
2) it highlights the ultimate policy objective and a targeted area of application; and, 3) it does not
reduce EPR into a policy instrument/tool (an EPR programme can use multiple instruments and the
principle serves as a basis to select instruments).
• IPR is an operational approach in which producers take physical and/or financial
responsibility in the post-consumer (or end of life management) stage of their own products.
This definition should be adopted because 1) it gives a practical outlook of IPR; and, 2) it highlights
key components and a targeted area of application of IPR which is specific but not too narrow.
• Who uses it in industrial networks?
Producers (e.g. HP, Electrolux, Sony, Nokia, Braun, Dell, Volvo) some industry associations (e.g.
European Recycling Platform (ERP), WEEE Forum, WEEE compliance schemes at the national
level, national car associations), packaging recycling association such as PRO Europe and
corresponding national schemes.
Which industrial sectors?
Electrical and Electronic Equipment (EEE), automotive, packaging and beverages, batteries,
recycling.
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding
Legislation / Policy
measure
ELV Directive
2000/53/EC and
corresponding
legislation outside of EU
WEEE Directive
2002/96/EC and
corresponding
legislation outside of EU
RoHS Directive
2002/95/EC and similar
legislation outside of EU
EuP Directive
2006/66/EC
Battery Directive
(91/157, repealed by
Relevance to industrial Comment
networks
e.g. on effectiveness of implementation
High (cars) Induced development/improvement
of infrastructure for end of life
management of cars with dueconsideration
on their environmental
impacts.
High (EEE) Development of collection and
recycling infrastructure accelerated,
though most member states (MS)
failed to implement IPR in full.
High (EEE) Effect felt unanimously, both OEMs
and their supply chain.
High on energy efficiency issues
(EEE)
80
Although the EuP Directive is
supposed to embrace LC thinking,
in reality the focus has been energy
efficiency of use phase, thus so far
little impact on end of life phase.
High (batteries) Strong effects on reduction of heavy
metals.

2006/66)
Packaging Directive
(94/62/EC, amended by
2004/12/EC)
corresponding
legislation outside of EU
Non-legally binding
High (packaging) Although the Directive itself does
not mandate EPR, most MS
implement the Directive based on
EPR.
Policy measure Relevance to industrial
networks
Greenpeace ranking
Design guidelines in
Japan
81
Comment
e.g. on method and effectiveness of
implementation and scope to extend
High (EEE) Force producers to consider their
strategies to address life cycle
environmental impacts and
communicate them actively to the
public.
High (EEE, cars) Development and update of design
assessment manuals by the industry
associations as well as individual
producers.
• What are its advantages? • What are its disadvantages?
• It internalises environmental consequences
that traditionally are shouldered by
authorities and tax payers to producers and
consumers who have more influence over
the consequences;
• It is goal-oriented giving clear objectives and
direction;
• It is flexible and does not over-prescribe
operational details – leaving room for
innovation;
• It can establish a common interest and
serves as a common ground for constructive
dialogues between different groups of
stakeholders such as producers, recyclers,
authorities, NGOs, and consumers;
• It is endorsed by policy makers in many
jurisdictions and has become a business
reality in certain sectors such as automotive,
electronics, batteries, and packaging;
• It links consumption decisions with the life
cycle impacts of products and encourages
consumer decisions lowering the overall
impacts, thus stimulating producer
innovations to benefit from the market
opportunities.
• It faces opposition because costs are
internalised to producers and consumer
products;
• Operating IPR can be a challenge and some
legal frameworks can set conditions that
discourage its application;
• It can lead to counterproductive results in the
transitional period because existing products
and product systems are not designed to
meet new demands and objectives.
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
Collection and recycling of WEEE and cars in Europe and other OECD countries.

• How successful has it been in industrial networks?
End of Life vehicles: In September 2000 the European Parliament officially adopted Directive
2000/53/EC, even though it pushed back the date from 2003 to 2006 when producer responsibility
applied to car manufacturers. Among other requirements, the directive required 85 percent of
material recovery by 2006, of which 80 percent should be recycled; and 95 percent by 2015, of
which 85 percent should be recycled. By 2002 EU member states had to bring into force the laws,
regulations and administrative provisions necessary to comply with the Directive. The results have
been mixed and need to be further studied by ZeroWIN.
Electronic and Electric Equipment: Recycling of WEEE achieved in 16 EU MS whose data is
available for 2006 ranges from 27 to 90%. As of 2007, recycling rates achieved for four large home
and office appliances in Japan was 73-87%. As of 2006, the re-use/recovery rate of the cars in the
EU MS went up to 73-90%.
Has there been a different outcome in different sectors?
In particular those in which ZeroWIN is most interested: automotive, construction, electronics and photovoltaics.
The approach taken by the car producers and EEE producers are quite different. The lack of
identification system in the case of EEE, among other issues, has created various administrative
complications and practical difficulties in organising IPR-based systems.
• What are the key documents that discuss and report on it?
(Potential) Benefit in Reference
industrial networks
Environmental Ogushi, Y. and M. Kandlikar.
2007. Assessing extended
producer responsibility laws in
Japan. Environmental
Science & Technology 41(13):
4502-4508.
Tojo, N. 2004. Extended
producer responsibility as a
driver for design change –
Utopia or Reality? Ph.D.
Dissertation, IIIEE, Lund
University, Lund, Sweden.
Economic Kieren, M. C. 2007. Strategic,
Financial, and Design
Implications of Extended
Producer Responsibility in
Europe: A Producer Case
Study. Journal of Industrial
Ecology 11(3): 113-131.
Social Pellow, D.N. 2007. Resisting
global toxics: Transnational
movements for environmental
justice. Cambridge:
Massachusetts Institute of
Technology.
Technical feasibility Atasu, A et al. “Developing
Practical Approaches to
Individual Producer
Responsibility”. Forthcoming.
82
Comment e.g. very positive
benefit demonstrated and evidenced
Very positive benefits of the
approach implemented in
Japan are demonstrated.
Anticipatory effects of EPR
policies in Europe and Japan,
as well as concrete
mechanisms of implementation
in selected countries are
documented.
Some Financial benefits to a
firm proactively pursuing IPR is
documented.
Potential benefits in terms of
environmental justice are
outlined for E/IPR.
Evaluates the examples of IPR
implementation in various
products/sectors and countries,
identifying technical feasibility

Operational feasibility Van Rossem, C., Tojo, N., and
Lindhqvist, T. 2006. Extended
Producer Responsibility: An
Examination of its Impact on
Innovation and Greening
Products. Lund: IIIEE, Lund
University.
Compatibility with EU policy Van Rossem, C. 2008.
Individual Producer
Responsibility in the WEEE
Directive: From Theory to
Practice? Ph.D. Dissertation,
IIIEE, Lund University, Lund,
Sweden.
• Discussion
83
for manufacturers.
Real life examples of IPR are
documented.
The compatibility of E/IPR with
the EU Directives is
demonstrated but
implementation slippages in the
transposition hindering IPR are
also mentioned.
Is this topic/concept one for use in ZeroWIN?
Yes.
Is it unproven e.g. not enough data?
Quantitative data on upstream changes could be difficult to aggregate. However, this could be
compensated by qualitative data obtained via interviews and some proxy (e.g. achieved recycling
rate, changes in terms of decrease of hazardous substances).
Is it unlikely to be successful based upon previous experience?
No.
References
Atasu, Atalay, Luk Van Wassenhove, Mark Dempsey and Chris van Rossem. “Developing Practical
Approaches to Individual Producer Responsibility”. Forthcoming.
ERP (European Recycling Platform) 2007.Developing a Practical Solution to the Implementation of
the WEE Directive in the UK. <
Lindhqvist 2000, Extended Producer Responsibility in Cleaner Production. Ph.D. Dissertation, IIIEE,
Lund University, Lund, Sweden.
Greenpeace Ranking:
HP, 2009 – informal communication.
OECD 2001 Extended Producer Responsibility: A Guidance manual for Governments. Paris:
Organization for Economic Cooperation and Development.
Ogushi, Y. and M. Kandlikar. 2007. Assessing extended producer responsibility laws in Japan.
Environmental Science & Technology 41(13): 4502-4508.
Pellow, D.N. 2007. Resisting global toxics: Transnational movements for environmental justice.
Cambridge: Massachusetts Institute of Technology.
Tojo, N. 2004. Extended producer responsibility as a driver for design change – Utopia or Reality?
Ph.D. Dissertation, IIIEE, Lund University, Lund, Sweden.
UNU (United nations University), 2008 Review on Directive 2002/96 on Waste Electrical and
Electronic Equipment.
Van Rossem, C. 2008. Individual Producer Responsibility in the WEEE Directive: From Theory to
Practice? Ph.D. Dissertation, IIIEE, Lund University, Lund, Sweden.

2.2.4 Supply chain management (SCM)
Following review and discussion by the ZeroWIN consortium since Version 1 of this deliverable, this
section now incorporates the concepts of reverse logistics and remanufacturing. Although SCM is
an established concept and methodology in its own right, its use in ZeroWIN shall refer to this
adapted definition, i.e. including these ‘reverse’ elements.
The basis for the definition of SCM was established by US consultants in the early 80s. Traditional
purchasing and logistic functions have turned into a broader strategic approach to materials
distribution management (Tan, 2001). Figure gives an example for an entire supply chain.
Figure 10. Processes in a supply chain. New and Payne, 1995.
Note that Figure 10 focuses on forward supply chain management and only hints at the reverse
process (reverse SCM). In essence, SCM integrates supply and demand management within and
across companies. In the ZeroWIN network, it is considered that SCM incorporates both forward
and reverse process.
Development of SCM
The start of mass production in the 1950s and 60s enabled manufacturers to minimise production
costs. The problem of this time was little product or process flexibility because new products were
developed per “in-house”-technology and capacity. Because of the negative influence of this huge
work-in-process on costs, quality, development possibilities and delivery time, new material
management concepts were introduced to improve the company performance in the 70s.
Globalisation in the 80s forced the manufacturers to provide higher design flexibility, lower costs
and higher quality enabled by just-in-time and other management initiatives. The consequence of
this fastened process was the realisation of the potential benefit and importance of strategic and
cooperative buyer-supplier relationship. Manufactures began to focus on their “core competences”
and sourced out non-value activities to professionals and experts in these specific business fields.
The methodology of SCM followed this outsourcing process by providing a combination of buyersupplier
relationship and integrated logistics concept (Tan, 2001).
Werner (2008) divided the development of SCM from the 90s to date into three steps:
1. Integration of functions of an internal supply chain – which leads to an internal process and
information flow including purchasing, distribution, technology, finances and production;
2. Exchange of information between customers, suppliers and service providers – beginning in
the middle of the 90s within the development of modern IT-solutions, organisations started
to intensify their information exchange. A better utilisation of business synergies led to value
alliances. More responsibility was placed on the logisticians; and
3. Collaborative management of entire networks – since the year 2000 participants of the
business networks tried to exchange information in real-time. Therefore software solutions
84

ased on simultaneous planning methods e.g. Advanced Planning and Scheduling (APS)
were developed. Internet-enabled coordination of SCM which is useful for a real-time
information exchange is described in García-Dastugue and Lambert (2003).
The difficulty of building up a supply chain management for an entire business network is shown in
Figure 11.
Figure 11. Example supply chain network structure. Lambert, 2000.
Key concepts of SCM
There is a substantial body of literature relating to SCM. The literature is dense, complex, full of
concepts and definitions and consequently, difficult to unpick. A few key concepts are outlined in
this section.
Taking a historical perspective, Lavassani et al. (2008) observed 6 major movements in the
evolution of SCM studies: Creation, Integration, Globalisation, Specialisation Phases One and Two,
and Supply Chain Management 2 (SCM 2.0). Lambert (2004) outlines the key supply chain
processes as:
• Customer relationship management;
• Customer service management;
• Demand management;
• Order fulfilment;
• Manufacturing flow management;
• Supplier relationship management;
• Product development and commercialisation; and
• Returns management.
Lambert (2004) suggests that key critical supply chain management business processes are:
• Customer service management;
• Procurement;
• Product development and commercialisation;
• Manufacturing flow management/support;
• Physical distribution;
• Outsourcing/partnerships; and
• Performance measurement.
85

Lambert and Cooper (2000) identified the management components of supply chain management:
• Planning and control;
• Work structure;
• Organisation structure;
• Product flow facility structure;
• Information flow facility structure;
• Management methods;
• Power and leadership structure;
• Risk and reward structure; and
• Culture and attitude.
Blackburn et al. (2004) identify that not all reverse supply chains are identical, nor should they be.
However, most return supply chains are organised to carry out five key processes:
• Product acquisition—obtaining the used product from the user;
• Reverse logistics—transporting the products to a facility for inspecting, sorting, and
disposition;
• Inspection and disposition—assessing the condition of the return and making the most
profitable decision for re-use;
• Remanufacturing (or refurbishing—we use the terms remanufacturing and refurbishment
interchangeably)—returning the product to original specifications; and
• Marketing—creating secondary markets for the recovered products.
It is clear, therefore, that SCM supplies solutions for several fields of management activities. These
activities are described as own management methods on the one hand (Werner, 2008) and as
integrated key processes (see key examples below) on the other hand (Lambert, 2000).
Customer relationship management: The identification of key customers is a necessary action for
the successful implementation of SCM. Customer service teams build up a customer relationship to
forecast changes of demand. This service must be analysed to evaluate the level of service as well
as customer profitability.
Customer service management: The task of a customer service is to provide real-time information
on product availability and transportation dates complying with production and distribution actions of
the organisation.
Demand management: Organisations should have a balanced requirement-supply capability
relation. Demand management has to handle this challenge with the use of point-of-sale and “key”
customer data to reduce uncertainty and strengthen organisations efficiency. The most advanced
way is to synchronise customer demand, production rates and inventories on a global level. Vendor
managed inventory as evaluated in Dong and Xu (2002) is one possibility for an integrated demand
management.
Order fulfilment: The objective of the customer order fulfilment process is to provide a smooth
process from lowest level supplier to all different customers within the entire internal management
plans (manufacturing, distribution, transportation).
Manufacturing flow management: The product manufacturing flow of a SCM-organisation has a
high grade of flexibility and is able to perform rapid changeovers to accommodate mass
customisation. Delivery dates are responsible for the priority-level of specific production. An
optimisation of the manufacturing flow management leads to shorter cycle times of production.
Procurement: SCM organisations change from bid and buy system to an involvement of key
suppliers in the product development phase. This action reduces product-cycle time. Therefore
strategic alliances between buyer and supplier have to be built on a global basis. An additional
possible method to strengthen the buyer-supplier-relationship and communication is strategic
purchasing as evaluated in Chen et al. (2004). Another important part of an organisation is a well-
86

supported fast communication mechanism like electronic data interchange (EDI) or internet linkages
to reduce transaction costs and time.
Product development and commercialisation: To develop most needed products in the shortest
possible timeframe Lambert (2000) names three “musts” for the management:
• Coordinate with customer relationship management to identify customer-articulated and –
unarticulated needs;
• Select materials and suppliers in conjunction with procurement; and
• Develop production technology in manufacturing flow to manufacture and integrate into the
best supply chain flow for the product/market combination.
Returns: The management of returned products offers the possibility for a SCM to reach
sustainability in the environmental case. By immediate customer returns product failures can be
identified.
Facility location: Melo et al. (2009) released a literature review concerning facility location models
in the context of SCM and reverse logistics. This part of the planning process is influenced by
procurement, routing and the choice of transportation modes. The integration of facility location
decisions into SCM is a new issue and still under research, especially the full integration of forward
and reverse activities.
SCOR: The Supply Chain Operations Reference Model is a computer based tool which describes
the activities of a supply chain with all phases of satisfying a customer’s demand and was
developed by the Supply Chain Council. It involves all customer interactions, material transactions
and market interactions. The use of standardised parameters enables an evaluation of certain steps
of the supply chain and the supply chain as a whole. SCOR in ZeroWIN related studies are Hwang
et al. (2008) for the TFT-LCD industry in Taiwan and Yeo and Ning (2002) for the construction
industry.
Definitions
An “up-to-date” definition was given by Werner (2008): Actually SCM can be described as an
integration of business activities based on a value chain. The implementation shall lead to a
reduction of transaction-costs, an acceleration of the production process and an optimisation of
money flows (Cash-to-Cash-Cycle). Supply, disposal and recycling processes including money- and
information-flows are part of these internal as well as network-oriented and integrated activities.
This broad definition is necessary due to the high quantity of different SCM-related studies. Croom
et al. (2000) and Tan (2001) tried to establish a framework for a literature review and to evolve
topics for an allocation of present literature.
Croom et al. (2000) provides samples for definitions of supply chain management which shows the
variety of attempts to get a general definition (Table 8).
87

Table 8. Sample of definitions of SCM. Croom et al., 2000.
ZeroWIN’s definition will combine two definitions (Aberdeen Group, 2006; CSCMP, 2006) as
follows:
“Supply chain management (incorporating reverse processes) encompasses the planning and
management of all activities involved in sourcing and procurement, conversion, return, exchange,
repair/refurbishment, remarketing, and disposition of products, and all logistics management
activities. Importantly, it also includes coordination and collaboration with channel partners, which
can be suppliers, intermediaries, third-party service providers, and customers.”
Objectives
The optimisation of efficiency and effectiveness of business activities as well as a harmonisation of
competitive factors shall lead to a higher competitiveness of the organisation, including better
business conditions for all partners involved. Objectives of SCM described in Werner (2008) are
listed below.
Reachable benefits out of the fulfilment of these objectives can be market-related (concentration on
core-activities, lower market-risks, raising customer value), internal (capacity management, avoiding
of “bottlenecks”, reduced inventory) and supplier-related (tightened purchasing-processes).
Efficiency and effectiveness
To fulfil the aim of efficiency and effectiveness can be described as “to do the right things right”.
Effectiveness demands strategic planning towards successful actions. Good cost-benefit-relation is
the objective of the operative interpreted term “efficiency”.
Competitive factors
The most important factors of competitiveness are costs, time, quality and flexibility. SCM shall lead
to a harmonisation of these factors with the possibility of using different weighting factors
concerning the market situation.
Parameters that influence costs are stock, freight, investment and depreciation. Fastening of
activities is mostly an aim of to improve the value chain. Modern SCM is also able to reduce Time-
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to-Market for new innovations or de-acceleration for postponement strategies. Adjustment and
conversion abilities of entire organisations are factors of flexibility and can be enabled by modern
IT-solutions.
SCM in industrial networks
There are several case studies for different business networks available. Because of globalisation
SCM is necessary for all large and global operating organisations. Important studies about the
integration of different SCM strategies are Vickery et al. (2003) with the example of the U.S.
automotive industry (Big 3) and Frohlich and Westbrook (2001), who developed an integration
theory called “arcs of integration”. These arcs are representing the range of SCM integration from
the focal firm to the included suppliers and customers.
Case studies
As described above, there are studies from almost all industrial sectors concerning SCM. Due to
this, only case studies from ZeroWIN related industrial sectors were chosen. The electronics section
includes case studies mostly prepared for the electronics industry in general. Specific studies on the
production of photovoltaic systems could not be found.
Construction
The implementation of SCM in the construction industry was the consequence of its success in
other industrial sectors (Akintoye et al., 2000, Briscoe et al., 2001, Saad et al., 2002) and started
from the end of the 1980s (Vrijhoef and Koskela, 2000).
The study of Vrijhoef and Koskela (2000) provides the status-quo of SCM at the beginning of the
21 st century. Existing supply chains at this time were confronted with the problem of un-integrated
concepts. This led to waste and other problems in stages of the supply chain which were caused in
another stage. The most important failure of early supply chain management could be identified as
myopic control. The paper also provides examples of solutions and a better understanding of origins
of problems.
In the same year Akintoye et al. (2000) surveyed the UK construction industry concerning their
status of supply chain collaboration and management. A questionnaire was sent to UK contractors,
and the results revealed that the contractors in construction are very client focussed. A better
supplier-relationship could lead to an improvement of the organisations performance based on the
requirement of an increasing level of trust. Another result showed that 90% of the companies felt
that SCM is of importance for the future of their business.
Other parameters for planning phase of a supply chain management are skills and attitude of the
involved workers. Briscoe et al. (2001) provides results of company interviews in the UK. They also
describe mistrust between main contractors and key suppliers which disables the implementation of
a well functioning SCM.
Saad et al. (2002) identified a significant awareness of the importance of SCM and its main benefits
in construction. They expect that this multi-factor innovation is able to end adversarial culture and
fragmentation in construction. Like the studies before, Saad et al. (2002) also point out that
intensive partner-relationship has to be extended to those parts of the supply chain downstream of
the main contractor.
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Figure 12. A typical construction supply network. Briscoe et al., 2001.
In recent years the implementation of internet-based e-commerce tools (Kong et al., 2004) have
been developed to fasten the procurement process with positive consequences for the supply
chain. An overview on possible coordination mechanisms for construction supply chain
management in the internet environment which leads to a possible real-time information and
purchasing flow is given in Xue et al. (2007). A simulation platform for modelling a construction
supply network is shown in Tah (2005). This gives an explanation of the differences between the
modelling of SCM in the manufacturing industry and the construction industry. Contrary to the
automated mass production in the manufacturing sector, construction projects are temporary with a
defined start and end and most of the work is done by multidisciplinary teams. After completing the
work, most of the teams are reconstituted on the next project. Project-specific contracts, different
designs and locations are other reasons which are making a simulation of a construction supply
chain more complicated.
Automotive
The Japanese automotive sector e.g. Toyota was involved in the first development steps of SCM
(Xue et al., 2007). Most automotive industries have already finished the implementation of their
SCM strategies and so the case studies are more specific.
May and Carter (2001) present a study based on the results of the Team-based European
Automotive Manufacture project. This project investigated a co-operative working along the
automotive engineering supply chain by using advanced information technology. The results of this
information exchange show the success by increasing efficiency and flexibility. Potential time
savings of 10 to 50% including the related cost reductions were estimated along the product
introduction process. The study finishes with basic requirements for a collaborative engineering
environment.
Buyer-supplier relationships are an important factor of SCM. Kotabe et al. (2003) confirm with an
example of U.S. and Japanese automotive suppliers that knowledge transfer between buyer and
supplier can be associated with supplier performance improvement. Two major findings were
published. First, suppliers stand to benefit from systematic knowledge exchange with buyers.
Second, only long-established buyer-supplier relationships enable a high-level technology transfer.
Only effective knowledge transfer leads to joint advantage for separate organisations.
Different automotive organisations use different SCM strategies. A Hungarian study of Demeter et
al. (2006) describes the differences between Audi and Suzuki of implementing their SCM strategy
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along with the foundation of new facilities in Hungary. Audi with its European history has mainly
large partners as suppliers and has no need for small regional suppliers. As a consequence
knowledge transfer between Audi and Hungarian firms is not necessary. Suzuki goes the other way
and involves small local firms by training and financial support until they are able to deliver the
required quality and cost standard.
An automotive-specific case is the moving from the procurement of discrete parts to the
procurement of modular systems as outsourcing-strategy. The suppliers of modular parts are
involved in the development of new products and then responsible for the organisation of lower-tier
supply chains. Doran et al. (2007) focuses on these topics and gives examples for more or less
complex supply of modular systems (e.g. cockpits, air conditioning, injection moulding and
engineering consultancy).
Figueiredo and Mayerle (2008) describe the collection and recycling of unrecoverable tyres in two of
the three southernmost states in Brazil, Parana and Santa Catarina, using a conceptual framework,
an analytical model, and a three-stage algorithmic solution.
Based on the case of automotive and telecommunication industry Jammernegg and Reiner (2007)
compared different production strategies by a scenario-based simulation model. One scenario
shows that the change from a traditional make-to-stock to an assemble-to-order-strategy can lead
to a reduction of total costs (shipping and inventory carrying) of 11% on average.
Electronics
Most of the reviewed SCM-related studies are concentrating on closed-loop supply chains, as a
consequence of the Waste Electrical and Electronic Equipment (WEEE) directive or the
implementation of green supply chain management (GrSCM). Both include environmental
objectives. Thus, these studies are listed in the chapter “SCM and the environment”.
Wang et al. (2008) focused their research on the impact of the implementation of radio frequency
identification (RFID) in the TFT-LCD-industry. RFID is the following technology of the barcodesystem
and shall lead to better inventory management and easier procurement processes. The
simulation described in this paper results in lower inventory costs and increased inventory turnover
of RFID-enabled supply chains compared to those which are not RFID-enabled.
Benefits
The use of SCM in industrial networks is driven by economic motivations.
The improvement of an organisations performance by supply chain integration is shown in a lot of
studies. Van der Vaart and van Donk (2008) conducted a survey to categorise existing literature
because of the different factors and constructs used for describing the measured outcome.
Measuring the SC-related improvement of performance of a focal firm by general factors e.g.
market share or Return on Investment (ROI) leads to factors with high uncertainties due to the
influence of other economic and managerial variables. An example for such a performance
measurement system is given by Chan (2003) which is called analytic hierarchy process (AHP).
This method provides a multi-attribute decision-making technique but has also the problem of the
uncertainty of qualitative parameters (flexibility, trust, innovativeness, etc.).
Sahin and Robinson (2005) tried to quantify the cost saving by the implementation of a fully
integrated make-to-order supply chain in a traditional non-information–non-communication
organisation strategy. The summarised findings of the study reveal a 47.5% system-wide cost
saving. This high reduction was enabled due to the estimation of make-to-order supply chains.
Older studies are based on make-to-stock supply chains, which are cited in this study with cost
reduction rates of 1.75% to 6.7%.
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Buxmann et al. (2004) surveyed the implementation of SCM-software in the European Automotive
industry. They identified that the benefit of such software not being quantified causes companies
not to implement it. Thus, another objective of the survey was the quantification of cost reductions
relating to SCM-software. The results showed a reduced inventory of 14.3% and average lead time
of 13.7%. Transportation costs were reduced by 8.8%, production costs by 9.4% and purchase
costs by 8.5%. However, the allocation of the results between the implementation of SCM-software
and other changes in management has not yet been identified.
The outcome of SCM in the sectors of electronics and automotive is the same due to its character
of manufacturing industry. Concerning the construction industry SCM strategies are more
coordination-based but the general outcome is almost identical, although specific percentages of
e.g. cost reductions or transport reductions could not be found in the reviewed literature. For all
studies the allocation problem described above can be considered.
SCM and the environment
The role of industrial ecology in the world of the manufacturing business led to solutions for
“greening” supply chains (see section 2.1.2). Hagelaar et al. (2002) surveyed the integration of life
cycle assessment (LCA) into supply chains (see also section 2.3.1). Seuring (2004) gave examples
and analysed the importance of actors along a supply chain within the objectives of single actors
and overall objectives. These specific studies could be seen as steps to improve the method of
green supply chain management.
Green supply chain management (GrSCM)
The growing popularity of industrial ecology and the increasing acceptance of ISO 14001
environmental standards have led to a greater role of supply chain management in organisational
environmental practice (Sarkis, 2003). The survey field of GrSCM is afflicted with similar problems
to SCM. There are lots of studies and lots of different terms and relationships to specific problems.
Srivastava (2007) made a state-of-the-art literature review and classified the existing GrSCM
literature into three broad categories. Figure 13 shows the variety of studies and connection to other
business and environmental research fields.
A general conclusion described by Srivastana (2007) is that GrSCM can reduce the ecological
impact of industrial activity while strengthening performance on quality, cost, reliability, performance
and energy utilisation efficiency. This study identified that further research should be done to
support the evolution in business practice towards greening along the entire supply chain with the
future scenario of an intelligent GrSCM. Other topics of needed research are the development of
automated disassembly systems, understanding of secondary markets and better information
management on return levels.
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Construction
Figure 13. Classification based on problem context in GrSCM. Srivastava, 2007.
Based on the study of Vrijhoef and Koskela (2000) the implementation of SCM can lead to a
minimisation of waste by the integrated planning of the construction supply chain. The paper does
not deliver any percentage data of the improvement.
Automotive
An automotive-related study is provided by Koplin et al. (2007). They developed a sustainability
supply management concept for the Volkswagen AG consisting of four levels: 1) normative
requirements for sustainable supply management; 2) early detection of supply related risks; 3)
operational implementation of supply processes and 4) monitoring and supplier development. This
sustainable concept should help to reduce environmental and social damages but to date no
analysis of the effects in practice has been made. Zhu et al. (2007) explains the problems of
GrSCM in the Chinese automotive industry and gives the example for a “success-story” of the
implementation of GrSCM at the Dalian Diesel Engine Plant. Using a GrSCM-strategy in China will
be very important for the entire environment in the future due to its growing automotive market and
industry.
Electronics
The implementation of the European Union directive regarding waste of electrical and electronic
equipment (WEEE) led to new issues in the electrical and electronic industry. Closed-loop supply
chains are implemented to go along with the requirements of extended producer responsibility,
which are confronted with reverse flows of WEEE. Hammond and Beullens (2007) investigated the
issue of equilibrium for all players involved in this closed-loop supply chain. Calculations within this
study identified that the current WEEE directive stimulates recycling activities and economic growth
but do not lead to a reduction of virgin materials or landfill use. Thus, closed-loop supply chain may
be a possibility for the implementation of sustainable development.
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GrSCM in the electronics sector is a well researched field. Chien and Shih (2007) did a study of the
implementation of GrSCM in this specific business field and compared its relation to organisational
performance and identified factorable environmental and financial performance for the surveyed
companies in Taiwan.
Ali and Chan (2008) describe how the Restriction of Hazardous Substance (RoHS) and Waste
Electrical and Electronic Equipment (WEEE) Directives have changed the way reverse supply
chains operate. They provide a number of valuable conclusions: i) the introduction of recyclers and
remanufactures in the chain has made the effect of product and material recovery feasible ii) the
time for transportation of e-waste to a centralised location for revaluation of the product has reduced
via strategic alliance with eco-non-profit organisations and producers of the components iii) it is
important that WEEE is treated at the earliest convenient time possible to avoid the problem of
product losing its salvageable value iv) manufacturers and environmental government bodies must
work along with recyclers in order to achieve a high level of efficiency in recycling whilst making the
supply chain more responsive.
Gunasekarana and Ngaib (2005) highlight that the build-to-order supply chain management (BOSC)
strategy has recently attracted the attention of both researchers and practitioners, given its
successful implementation in many companies including Dell computers, Compaq, and BMW. Their
literature review finds that: (a) there is a lack of adequate research on the design and control of
BOSC, (b) there is a need for further research on the implementation of BOSC, (c) human resource
issues in BOSC have been ignored, (d) issues of product commonality and modularity from the
perspective of partnership or supplier development require further attention and (e) the trade-off
between responsiveness and the cost of logistics needs further study.
Lehtinen and Poikela (2006) present a case study on how the collection of WEEE has been
organised in Northern Finland. The problems and challenges of collection phases are discussed
and an optimal model for the future is presented. The results demonstrated that logistical costs
were high and there were unnecessary handling and transportation stages in the reverse supply
chain. The study also showed that legislation constraints, diverse characteristics and re-use value
of EEE had an important impact on the strategic priorities of the future reverse logistics system of
WEEE. In particular, they highlight that the real challenge of collection lies in ensuring that WEEE is
collected separately so that reusable and non-reusable equipment are separated.
Discussion
Supply chain management is a very important management strategy nowadays. Globalisation and
web-based real-time communication enables a very complex planning of distribution, procurement
and recycling. ZeroWIN shall develop its own SCM strategy as soon as possible to optimise the
economic performance of existing networks or to lay a solid basis for new networks. Environmental
improvements go along with the implementation of SCM as described above. To optimise waste
flows the methods of reverse logistics or reverse supply chain management (RSCM) shall also be
included in a general SCM.
Lots of papers are describing the successful integration of SCM in industrial networks. An overview
of the performance measures is given in Van der Vaart and van Donk (2008) and specific
improvement percentages are given in Sahin and Robinson (2005).
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2.2.4.1 Reverse logistics
• What is reverse logistics?
What are relevant definitions?
The term ‘logistics’ originated in a military context, referring to how personnel acquire, transport, and store
supplies and equipment. In the business community, the term was adopted in the 1960s, and is used to
refer to how resources are acquired, transported and stored along the supply chain. More recently, Pohlen
and Farris (1992) defined logistics as: “the movement of goods from a consumer towards a producer in a
channel of distribution."
One of the earliest definitions of reverse logistics (Lambert et al., 1981) describes the process as one that
goes the wrong way on a one-way street because the great majority of product shipments flows in one
direction. In essence, the scope of reverse logistics throughout the 1980s was limited to the movement of
material against the primary flow, from the customer toward the producer (Rogers and Tibben-Lembke,
2001).
The US-based Aberdeen Group Benchmark Report (2006) defines reverse logistics simply as “the return,
exchange, repair/refurbishment, remarketing, and disposition of products.” Yet there are other aspects of
reverse logistics systems that even this broad definition does not encompass.
The most cited definition of reverse logistics has been made by Rogers and Tibben-Lembke (2001). They
define reverse logistics as: “The process of planning, implementing, and controlling the efficient, cost
effective flow of raw materials, in-process inventory, finished goods, and related information from the point
of consumption to the point of origin for the purpose of recapturing or creating value or proper disposal.”
What definition should ZeroWIN adopt for use in industrial networks and why?
The above definitions are still somewhat limited, because the products actually don’t need to be returned
to their origin, but may be returned to any point of recovery (De Brito and Dekker, 2002). Therefore, the
definition made by the Reverse Logistics Association (2009) is probably the best to be adopted for
industrial networks, as they define reverse logistics as: “all activity associated with a product/service after
the point of sale”. The process may be illustrated as shown in Figure 14.
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Raw material Part fabrica-
Modules sub- Parts assem- Distribution User
tionassemblybly
Disposal
Recycle
Forward Logistics
Remanufacture
Figure 14. Schematic illustration of logistics and reverse logistics.
Figure 14 illustrates how reverse logistics is closely related with supply chain management.
What are the key concepts?
Normally, logistics deal with events that bring the product towards the customer. In the case of reverse
logistics, the resource goes at least one step back in the supply chain. For instance, goods move from the
customer to the distributor or to the manufacturer. More precisely, reverse logistics is the process of
moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The
reverse logistics process includes the management and the sale of surplus as well as returned equipment
and machines from the hardware leasing business.
However, it doesn’t seem to be clear which activities qualify as reverse logistics. According to Rogers and
Tibben-Lembke (2001) reverse logistics include:
• Remanufacturing;
• Refurbishing;
• Recycling;
• Landfill;
• Repackaging;
• Returns processing; and
• Salvage.
Reverse logistics can be broken into two general areas, depending on whether the reverse flow consists
primarily of product or packaging. Products could be in the reverse flow for several reasons, such as
remanufacture or refurbishment, or because a customer returned them. Packaging generally flows back
because it is reusable (e.g., pallets or plastic totes), or because regulations restrict its disposal (Rogers
and Tibben-Lembke, 2001).
Product collection is probably the weakest link in the reverse supply chain process in terms of economic
viability. Transport of goods backwards up the supply chain is the main impact of reverse logistics affecting
sustainable distribution in terms of fuel consumption, kilometers travelled, air quality, noise pollution, safety
and health. Breen (2006) provides a comprehensive review of B2B (Business-to-Business) and B2C
(Business-to-Consumer) relationships in reverse logistics systems, and highlights that in both
relationships, there is evidence of suppliers suffering financial loss due to customer non-compliance.
Krumwiedea and Sheu (2002) have developed and validated a reverse logistics decision-making model in
order to guide the process of examining the feasibility of implementing reverse logistics in third-party
98
Repair
Reverse Logistics
Reuse

providers such as transportation companies.
• Who uses it in industrial networks?
Which industrial sectors?
Reverse logistics is used in the electronics industry as the quality of end of life possibilities for
electrical and electronic products is decisively determined by the quality of the logistical
background. Today end of life equipment is mostly regarded as scrap and treated like it is usually
for scrap – in a destructive way. A treatment in such a way has an effect on end of life possibilities:
• It is very hard or mostly impossible to reuse a product as a whole; and
• It is impossible to use automated disassembly technologies.
Therefore there is a need for a logistics solution that meets the demands for re-use strategies and
the application of new technologies. Reverse logistics is also used in the automotive sector, the
construction sector and is likely to be used in the photovoltaic sector, once the first PV modules
arrive at their end of life stage.
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in industrial networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding
Legislation / Policy measure
Due to environmental regulations and consumer pressures to increase customer service,
companies are focusing on reverse logistics. As it is very often seen as part of end of life
management, the same environmental regulations, as mentioned in the section on end of life
management apply to reverse logistics (see section 2.2.6).
• What are its advantages? • What are its disadvantages?
• It is a proven concept and financial savings and
environmental benefits have been demonstrated (see
examples below).
• Simple economics, although the question whether product
recovery is economically attractive or not has to be viewed
within the legal framework in which the firm operates.
Buellens (2004) points out that a company that is
considering adopting a reverse logistics or product recovery
programme may be able to overcome any technical or legal
difficulties, but might be dissuaded from adopting such
processes due to the financial implications. Resources
make reverse logistics programmes more efficient and
more effective, but there is recompense only when the
resources are used in such a manner as to develop
innovative capabilities/approaches to handling returns
(Richey et al., 2004). Late entrants into reverse logistics
have the advantage that they can utilise knowledge and
experience from early adopters, and should be able to
manage available resource in a more profitable way
(Richey et al., 2004). The existence of a reverse logistics
programme has been shown to bring direct monetary gains
to companies by reducing the use of raw materials, by
adding value with recovery, or by reducing disposal costs
(Rogers et al., 2001; De Brito et al., 2003). Marien (1998)
cites Eastman Kodak (reusable cameras) and Hewlett-
Packard (printer toner cartridges returned for refilling) as
99
• Establishing a reverse logistics
programme to a company costs
money, especially if it has to be
integrated in already existing
organisational structure.

early examples of companies using reverse logistics as part
of ‘investment recovery’.
• In terms of customer service, a good returns policy may
give a retailer an advantage over less liberal competitors
(DfT, 2004).
• More effective inventory utilisation – removing old or slowmoving
stock and replacing with newer, more desirable
products can help promote sales (DfT, 2004).
• Recapturing product value – if unsold products can be
quickly and effectively disposed of (for example, sold on by
auction, or to Jobbers – someone who buys surplus or
unwanted merchandise from one source, and profits by
selling it on), some of the value may be reclaimed (DfT,
2004).
• Security of technology – by recovering all its own products,
a company can prevent competitors accessing sensitive
technologies, and thus may retain an advantage in the
marketplace (DfT, 2004).
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
There are no examples of applications in industrial networks, but there are numerous case studies
on reverse logistics that concentrate mostly on the organisation of reverse logistics tasks in the
automotive industry (e.g. Schultmann et al., 2006) and in the industry for electrical and electronic
equipment (Walt Kids in glass houses her & Spengler, 2005). A study on reverse logistics in
Japan (Tsukaguchi & Umeda, 2003) investigates how a reverse logistics flow pattern reverts to a
conventional logistics flow in the product sector of electrical appliances, and how this process can
produce efficient systems and services in order to achieve high reverse logistics performance.
Another case study is presented by Barros et al. (1998) for designing a sand recycling network in
the Netherlands. After crushing facilities process the construction waste into sieved sand, regional
depots sort the sand according to its pollution levels and polluted sand is cleaned in the treatment
facilities for re-use in road and building construction.
• What are the key documents that discuss and report on it?
Topic Title Reference
Reverse logistics (overview) Reverse Logistics –
Quantitative Models for Closed-
Loop Chains
Dekker et al. (2003)
Reverse logistics (overview) Supply Chain Management and
Reverse Logistics
Dyckhoff et al. (2004)
Reverse logistics (overview) Quantitative Models for
Reverse Logistics
Fleischmann (2001)
Reverse logistics (overview) Econometric Institute Report De Brito & Dekker (2002)
Reverse logistics (practice) Reverse Logistics in Practice Knoth et al. (2002)
Marketing aspect of reverse The durable use of consumer Kostecki (1998)
logistics
products: new options for
business and consumption
Trends and practices in Going Backwards: Reverse Rogers & Tibben-Lembke
reverse logistics
Logistics Trends and Practices (1999)
Business perspective of Matching Demands and Supply Guide et al. (2003)
reverse logistics
to Maximise Profits from
Remanufacturing
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Models to support reverse
logistics
Reverse logistics in the
automotive industry
Reverse logistics in the
Chinese automotive industry
Reverse logistics in the
electronics industry
Reverse logistics in the
electronics industry in Japan
Reverse logistics in the
construction industry
• Discussion
Business aspects of closed
loop chains
Modelling reverse logistic tasks
within closed-loop supply
chains
Managing reverse logistics in
the Chinese automobile
industry
Impact of WEEE directive on
reverse logistics in Germany
Reverse Logistics System for
Recycling: Efficient Collection
of Electrical Appliances
A two-level network for
recycling sand: A case study
101
Guide & Van Wassenhove
(2003)
Schultmann et al. (2006)
Adebanjoa & Xiao (2006)
Walther & Spengler (2005)
Tsukaguchi & Umeda (2003)
Barros et al. (1998)
Is this topic/concept one for use in ZeroWIN?
The main problem facing manufacturers is how to collect the end of life products and what to do
with them in order to obtain the maximum economic benefits from their recovery and at the same
time fulfilling the relevant legislations. By introduction of the European Union Directive on End of
Life Vehicles (ELVs) as well as the WEEE Directive the manufacturers are now responsible for their
products at their end of life stage. Reverse logistics is of importance for ZeroWIN for two main
reasons:
• Because of its influence on the supply chain (the supply chain should be considered as a
closed-loop supply chain which includes reverse flows and therefore, to optimise waste
flows, reverse logistics must be included within general supply chain management); and
• Because it is a valuable concept for wastes and by-products on construction sites.
References
Aberdeen Group (2006). Revisiting Reverse Logistics in the Customer-Centric Service Chain.
Aberdeen Group Benchmark Report.
Adebanjo, D., and Xiao, P., 2006. Managing reverse logistics in the Chinese automobile industry.
In IEEE (Institute of Electrical and Electronic Engineers), 2006 IEEE International Conference on
Management of Innovation and Technology. Taipei, Taiwan 8-11 October 2006. S.l.
Barros, A., Dekker, R. and Scholten, V., 1998 A two-level network for recycling sand: A case
study. European Journal of Operational Research. [Online]. 110(2). Abstract from
IngentaConnect database. Available at:
http://www.ingentaconnect.com/content/els/03772217/1998/00000110/00000002/art00093
[accessed 23 July 2009].
Breen, L. (2006). Give me back my empties or else! A preliminary analysis of customer
compliance in reverse logistics practices (UK). Management Research News, 29(9), 532-551.
Buellens, P. (2004). Reverse Logistics in Effective Recovery of Products from Waste Materials.
Reviews in Environmental Science and Bio/Technology, 3, 283-306.
De Brito, M.P., Dekker, R. (2003). A Framework for Reverse Logistics. Erasmus Research
Institute of Management Report Series Research In Management.
De Brito, M. and Dekker, R. 2002. Reverse logistics. Econometric Institute Report [online].
Abstract from Ideas database. Available at: http://ideas.repec.org/p/dgr/eureir/2002272.html
[accessed 15 July 2009].
Dekker, R., Fleischmann, M., Inderfurth, K. & Van Wassenhove, L., 2003. Reverse Logistics –
Quantitative Models for Closed-Loop Supply Chains. Berlin: Springer.

DfT (2004). The Efficiency of Reverse Logistics. Report prepared for the Department for
Transport by Cranfield University School of Management, Sheffield Hallam University, and The
Chartered Institute of Logistics and Transport (UK).
Dyckhoff, H., Lackes, R. and Resse, J., 2004. Supply Chain Management and Reverse
Logistics. Berlin: Springer.
Fleischmann, M., 2001. Quantitative Models for Reverse Logistics, Ph. D. Erasmus University
Rotterdam.
Guide, V., Teunter, R. and Van Wassenhove, L., 2003 Matching Demand and Supply to
Maximize Profits from Remanufacturing. Manufacturing & Service Operations Management,
[Online]. 5(4). Abstract from Portal database. Available at:
http://portal.acm.org/citation.cfm?id=970901 [accessed 15 July 2009]
Guide, D. and Van Wassenhove, L., 2003. Business aspects of closed loop chains. S.l.:
Carnegie Mellon University Press.
Knoth, T., Brandstötter, M., Kopacek, B. and Kopacek, P. 2002. Reverse Logistics in Practice. In:
Proceedings of the 4 th International Symposium Going Green, CARE Innovation 2002, Vienna,
November 25-28 2002. s.n.: s.l.
Knoth, T., Hoffmann M., Kopacek, B. and Kopacek. 2002. In: Proceedings of the Euro-Sustain
2002 Conference. Rhodes, April 2-5 2002, s.n.:s.l.
Kostecki M.,1998. The durable use of consumer products: new options for business and
consumption. S.l.: Kluwer Academic Publishers.
Krumwiedea, D.W. and Sheu, C. (2002). A model for reverse logistics entry by third-party
providers. Omega, 30, 325–333.
Lambert. D., 1981. Strategic Physical Distribution Management. s.l.: Homewood IL.
Marien, E.J. (1998). Reverse Logistics as a Competitive Strategy. The Supply Chain
Management Review, 2(1), 43-52.
Pohlen, T. and Farris, M., 1992 Reverse logistics in plastics recycling. International Journal of
Physical Distribution and Logistics Management, [Online]. 22(7). Abstract from Emerald database.
Available at:
http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=41DDFF4225A1D89D6557F
22928E3EEE9?contentType=Article&contentId=846458 [accessed 3 August 2009].
Reverse Logistics Association, 2009. What is Reverse Logistics? [Online]. Available at:
http://www.reverselogisticstrends.com/reverse-logistics.php [accessed 4 August 2009].
Richey, G.R.; Daugherty, P.J.; Genchev, S.E.; Autry, C.W. (2004). Reverse Logistics: The
Impact of Timing and Resources. Journal of Business Logistics, 25(2), 229-250.
Rogers, D. and Tibben-Lembke, R., 1999. Going Backwards: Reverse Logistics Trends and
Practices. [Online]. The University of Nevada, Available at: http://www.rlec.org/reverse.pdf
[accessed 17 July 2009].
Rogers, D.S., Tibben-Lembke, R.S. (2001). An Examination of Reverse Logistics Practices.
Journal of Business Logistics, 22(2), 129-148.
Schultmann, F., Zumkeller, M. and Rentz, O., 2006 Modelling reverse logistic tasks within
closed-loop supply chains: An example from the automotive industry. European Journal of
Operational Research. [Online]. 171(3). Abstract from Science Direct database. Available at:
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VCT-4FNNC95-
6&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=c&_acct=C000050221&
_version=1&_urlVersion=0&_userid=10&md5=5f0e471f8360b0c6c9a8a5641a9155c7 [accessed 16
July 2009].
Tsukaguchi, H. and Umeda, Y., 2003. Reverse Logistics System for Recycling : Efficient
Collection of Electrical Appliances. [Online]. Proceedings of the Eastern Asia Society for
Transportation Studies. Available at: http://www.easts.info/2003proceedings/papers/1319.pdf
[accessed 15 July 2009].
Walther, G. and Spengler, T. 2005. Impact of WEEE-directive on Reverse Logistics in Germany.
International Journal of Physical Distribution and Logistics Management. [Online]. 35(5). Abstract
from IngentaConnect database. Available at:
http://www.ingentaconnect.com/content/mcb/005/2005/00000035/00000005/art00003 [accessed 17
July 2009].
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2.2.4.2 Remanufacturing
• What is remanufacturing?
Remanufacturing is a process of bringing used products to “like-new” functional state with
warranty to match. It recovers a substantial proportion of the resource incorporated in a used
product in its first manufacture, at low additional cost, thus reducing the price of the resulting
product (Ijomah et al., 2004).
What are relevant definitions?
“The process of bringing a used product to like-new condition through replacing and rebuilding
component parts” (Haynsworth and Lyons, 1987). According to Haynesworth and Lyons (1987)
“Products that have been remanufactured have quality that is equal to and sometimes superior to
that of the original product”. Bringing remanufactured products to at least OEM (Original
Equipment Manufacturer) original specification is one of the important factors that practitioners
use to distinguish remanufacturing from repair and reconditioning. However, this definition does
not provide a method for the purchaser to easily recognise that remanufactured products have
higher quality than repaired and reconditioned alternatives, or that remanufactured products have
similar quality to new alternatives (Ijomah et al., 2004).
Amezquita et al. (1996) describe remanufacturing as “The process of bringing a product to likenew
condition through reusing, reconditioning, and replacing component parts”. In the same
paper they describe reconditioning as a process that is different from remanufacturing and that
produces products that are inferior in quality to those produced by remanufacturing. However,
since remanufacturers state that the quality of a product is governed by the quality of its individual
components, a product that has within it reconditioned components can be described as
remanufactured only if remanufacturing and reconditioning describe the same process. If, on the
other hand, as proposed by Amezquita et al. (1996), remanufacturing is indeed superior to
reconditioning, then a product that has reconditioned components (i.e. components that are
below the quality standards of remanufacturing), must itself be below the standards of the
remanufacturing process. Such a product can therefore not be described as remanufactured.
Because the definition above has not differentiated remanufacturing from reconditioning the
authors believe that the definition by Amezquita et al. (1996) is ambiguous according to some
authors (Ijomah et al. 2004).
Ijomah et al. (1998) propose the following definitions in order to avoid ambiguity:
• Remanufacturing: The process of returning a used product to at least OEM original
performance specification from the customers’ perspective and giving the resultant product a
warranty that is at least equal to that of a newly manufactured equivalent.
• Reconditioning: The process of returning a used product to a satisfactory working
condition that may be inferior to the original specification. Generally, the resultant product
has a warranty that is less than that of a newly manufactured equivalent. The warranty
applies to all major wearing parts.
• Repair: Repairing is simply the correction of specified faults in a product. When repaired
products have warranties, they are less than those of newly manufactured equivalents.
Also, the warranty may not cover the whole product but only the component that has been
replaced.
What are the key concepts?
The significance of remanufacturing is that it combines profitability and sustainable development
benefits by reducing landfilling, as well as the level of virgin material, energy and labour cost in
production (Lund, 1984; Lund, 1996; Guide, 1999 and Hormozi, 1996).
Research indicates that up to 85% of the weight of remanufactured products may be obtained from
used components, and that such products have comparable quality to equivalent new products but
require 50% to 80% less energy to produce (Lund, 1984).
Ijomah et al. (1998) describe current remanufacturing activity by the following activities:
103

1. Receive the “core”, that is the parts of the product to be remanufactured. The term “core” is
used, as typical remanufactured parts are larger core items of the product;
2. Strip and clean the core into individual elements. As the used parts may be dirty, they are
dismantled and appropriately cleaned. A visual inspection would discard badly damaged
elements;
3. Estimate & quote remanufacturing costs. As many remanufacturing companies are subcontractors
to the OEMs, the cost of remanufacturing is often estimated on each product to
determine the appropriate rectification strategy;
4. Remanufacture. If the component were suitable, the appropriate machining/fabrication
processes would be used to remanufacture the component to an “as new” specification; and
5. Build, test and dispatch. Finally, the remanufactured components are reassembled (together
with necessary replacement components) to build the new product. After appropriate quality
testing, the product would be dispatched for sale.
Arguably the most well known (and certainly the most referred to) example of remanufacturing is
that of photocopiers made by Rank-Xerox (2003); their process is shown in Figure 15.
Figure 15. Xerox’s equipment recovery & parts re-use/recycle process. Xerox, 2003.
What definition should ZeroWIN adopt for use in industrial networks and why?
The process of returning a used product to at least OEM original performance specification from the
customers’ perspective and giving the resultant product a warranty that is at least equal to that of a
newly manufactured equivalent (Ijomah et al., 1998).
• Who uses it in industrial networks?
The development of company-to-company by-product exchanges can be developed between
pairs of companies, but also at networking level. A network of companies specialising in
collection, re-use, recycling, and remanufacturing offer comprehensive by-product management
to industry. This system may be created by an industrial park, a service business or utility, an
independent entrepreneur, or possibly by a public industrial development agency (Lowe, 2001).
Industrial ecology (sustainability-oriented industrial networking based on reinforcing “industrial
metabolisms”) seeks transformation from a linear, wasteful economy to a closed-loop system of
production and consumption. In such a system industrial, governmental, and consumer discards
would be reused, recycled, and remanufactured at the highest values possible (Sistla et al.,
2007).
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In the development of industrial parks (industrial areas implementing industrial ecology concepts)
several developers have adopted a strategy of recruiting firms involved in deconstruction,
demanufacturing, de-materialisation, and other “decomposer” activities (Cote’ et al., 1994).
Which industrial sectors?
Remanufacturing is particularly applicable to complex electro-mechanical and mechanical
products which have cores that, when recovered, will have value added to them which is high
relative both to their market value and to their original cost (Lund, 1984).
Remanufacturing has been very often applied in the electrical-electronic sector, both at individual
company level (E.G. Xerox have had “asset recovery management” programmes in place for
many years to recover and remanufacture copiers (Edward, 2003) and at networking level (E.G.
in Kitakyushu Ecotown, Japan, home appliance such as TVs, refrigerators, and washing
machines are disassembled and their parts recycled for remanufacturing (Anthony, 2001), and in
Burnside Industrial Park there are companies performing remanufacturing activities for toner
cartridges, furniture, printer and typewriter ribbons and computers (Edward, 2003).
Other sectors like the automotive sector also have many remanufacturing examples (E.G.
activities in Burnside Industrial Park – see Edward, 2003).
• What are its advantages? • What are its disadvantages?
• Low entry barriers, and providing 20% to 80%
cost savings in comparison to conventional
manufacturing. Market forces promote
resource recovery because reused,
remanufactured and recycled materials are
generally cheaper than virgin materials. There
are at least three reasons: 1) the value of
some residuals can be close to nothing for
their producers but of much greater value to
somebody else; 2) a lot of processing has
already been done in the production of
residuals, thereby lowering further processing
costs; 3) residuals are often produced much
closer to their potential buyers than virgin
materials, also lowering transportation costs
(McCaskey, 1994).
• Because it profitably integrates waste back into
the manufacturing cycle, remanufacturing
offers producers a method of avoiding waste
limitation penalties whilst maximising their
profits (Ijomah et al., 2004).
• It enables the embodied energy of virgin
production to be maintained and also
preserves the intrinsic “added value” of the
product for the manufacture (King & Ijomah, ?).
Lund estimates that a remanufactured product
only requires 20-25% of the energy used in its
initial formation. Thus, as well as reusing the
material, the energy required to produce a new
product is significantly lower (King & Ijomah).
• By receiving back old products, manufacturers
can obtain feedback on reliability and durability
information (Bras and McIntosh, 1999).
105
• Many individuals are unable to differentiate
between remanufacturing, repair and
reconditioning and refuse to purchase
remanufactured products because they are
unsure of their quality (Ijomah et al., 2004).
• Remanufacturers also perceive the scarcity of
effective remanufacturing-specific tools as a
key threat to their industry (Guide, 1999).
• Research shows that there is a need for
analytic models of remanufacturing (Ijomah et
al., 2004).
• Conflicts may arise between remanufacturing
organisations and original equipment
manufacturers (OEMs) in managing products
over the life cycle (Sistla et al., 2007).
• Some directives (Directive 2002/96/EC on
waste electrical and electronic equipment
(WEEE) and Directive 2000/53/EC on End of
Life Vehicles) establish the responsibility of the
producer over the products at their end of life.
The lack of differentiation of the responsibility
of the producer over the remanufactured
products may pose conflicts.

• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
1- Remanufacturing has been achieved by Fuji Xerox in its innovative creation of an Ecomanufacturing
plant. The Eco-manufacturing plant is divided into six areas of operation; fuser
rollers, laser optical systems, electronics, magnetic rollers, mechanics, chemistry, signature
analysis and print cartridge remanufacture (Fuji Xerox, 2005). They have identified these key areas
as components that contribute in the greatest part to waste management issues and are the core
attributes of their products. Fuji Xerox currently have remanufacturing facilities in Australia, USA,
Mexico, Brazil, Holland and Japan (Fuji Xerox, 2005).
2- The Burnside Industrial Park in the Halifax Regional Municipality is one of Canada's largest and
most successful industrial parks. It encompasses 1.200 hectares, more than 1.300 small and
medium sized businesses and employs approximately 17.000 people. The Park is the focus of a
multi-disciplinary research and development programme based at the School for Resource and
Environmental Studies, Dalhousie University. The goals of the programme are to develop strategies
and tools that promote material and energy exchanges along with waste reduction and improved
environmental and economic performance among firms, and to reduce the environmental impact of
the Park as a whole.
The promotion of the need for and benefit of re-use, remanufacturing and recycling functions in the
Park has resulted in several new businesses being established. Approximately 15% of the
businesses in the Park provide rental, repair, recovery, remanufacture or recycling services
(Noronha, 1999).
3- Hibiki Recycling Area (HRA). In Hibiki the tenants disassemble used products and make use of
them for remanufacture. One example is the Beston Kitakyushu Co., Ltd, which reassembles used
toner cartridges after collecting, disassembling and cleaning them (Anthony, 2001).
• How successful has it been in industrial networks?
Overall, two main improvements to corporate sustainability can be afforded to remanufacturing
initiatives: firstly, it improves supply chain efficiency which provides cost effectiveness; secondly, it
facilitates environmental responsibility which aligns company strategy with long term sustainability.
• What are the key documents that discuss and report on it?
(Potential) Benefit in
industrial networks
Economic Anthony SF Chiu, (2001) Eco-
Industrial Networking in Asia,
Papers Delivered at
International Conference on
Cleaner Production, Beijing,
China, September 2001, Paper
23 of 30
• Discussion
Reference Comment e.g. Very positive
benefit demonstrated and evidenced
106
Positive benefit demonstrated.
The remanufacturing projects
have resulted in several new
businesses being established.
Is this topic/concept one for use in ZeroWIN?
Remanufacturing has the potential to deliver sustainability improvements of operations in industrial
networks in the sectors being considered by ZeroWIN, and therefore it is relevant to the ZeroWIN
project.

References
Amezquita, T., Hammond, R., Salazar, M. and Bras, B., 1996. Characterizing the
remanufacturability of engineering systems. Proceedings of ASME advances in design automation
Conference, September 17-20, Boston, Massachusetts, USA, DE-vol.82, pp.271-278.
Anthony SF Chiu, 2001. Eco-Industrial Networking in Asia, Papers Delivered at International
Conference on Cleaner Production, Beijing, China, September 2001, Paper 23 of 30 .
Bras B and McIntosh M W, 1999. Product, process and organizational design for remanufacture –
an overview of research Robotics and Computer Integrated Manufacturing, Vol 15 (1999), pp 167-
178.
Cote', R., et al., 1994. Designing and Operating Industrial Parks as Ecosystems. School for
Resource and Environmental Studies, Faculty of Management, Dalhousie University, Halifax, Nova
Scotia B3J 1B9.
Desrochers, P. Eco-Industrial Parks The Case for Private Planning. PERC Research Study RS 00-
1.
Cohen- Rosenthal, E., 2003. Eco-Industrial Strategies – Unleashing synergy between economic
development and the environment.
Fuji-Xerox, 2005. Remanufacturing Case Study: Corporate societal responsibility: knowledge
learning through sustainable global supply chain management. The Remanufacturing Institute.
http://www.reman.org/pdf/Fuji-Xerox.pdf.
Guide, 1999. Remanufacturing production planning and control: U.S industry best practice and
research issues. Second International Working Paper on Re-use, Eindhoven, pp 115-128.
Haynsworth, H.C. and Lyons, R.T., 1987. Remanufacturing by design, the missing Link. Production
& Inventory Management; Second quarter, pp. 24 – 28.
Hormozi, A., 1996. Remanufacturing and its consumer, economic and environmental Benefits.
APEX Remanufacturing Symposium, May 20-22, USA, pp. 5-7.
Ijomah W et al, 1998. Remanufacturing: Evidence of environmentally conscious business practice in
the UK. 2nd Int. Working Seminar on Re-use. March 1-3, TU Eindhoven, 1998.
Ijomah, W. L., Childe, S. and C. McMahon, 2004. Remanufacturing: A Key Strategy for Sustainable
Development. In: Proceedings of the 3rd International Conference on Design and Manufacture for
Sustainable Development. Cambridge University Press. ISBN 1-86058-470-5.
King, A.M., Ijomah, W. Reducing End of life Waste: Repair, Recondition, Remanufacture or
Recycle?
Lowe, E.A., 2001. Eco-industrial Park Handbook for Asian Developing Countries. Available at:
http://indigodev.com/Handbook.html [Accessed 15 August 2009]
Lund, R.T., 1984. Remanufacturing: The experience of the U.S.A. and implications for the
Developing Countries. World Bank Technical Paper No. 3.
Lund, R.T., 1996. The remanufacturing industry: hidden giant” Boston University .
McCaskey, D., 1994. Anatomy of adaptable manufacturing in the remanufacturing Environment.
APICS Remanufacturing Seminar Proceedings, USA., pp 42-45.
Noronha J., 1999. Scavengers and Decomposers in an Industrial Park Ecosystem: A Case Study of
Burnside Industrial Park.
Sistla, S., Chintalapati, S. and Dhillon, J., 2007. Integrated environment through industrial ecology
and business ecology. Electronic Journal of Environmental, Agricultural and Food Chemistry. ISSN:
1573-4377.
Xerox, 2003. Environment, Health & Safety Progress Report 2003, Xerox. www.xerox.com.
2.2.5 Selling service rather than product
Related to de-materialisation (section 2.1.3.2)
• What is ‘selling service rather than product’?
This is an alternative to the traditional basis of economic exchange, that is, tangible products,
107

whereby instead a level of service is provided. The aim is to maintain or increase value whilst
reducing material and waste flows.
What are the key concepts?
Selling service rather than product is a key way to reduce material and energy flows and promote
resource productivity. By consumers paying for a level of service rather than a product, for example
use of a car rather than a car, or a method to clean clothes rather than a washing machine unit, the
incentive to maximise sales is removed and replaced with an incentive to maximise product life
spans and efficient use of resources instead.
The concept of selling service rather product has been suggested by various researchers under
different names:
Lovins and Lovins’ business model Natural Capitalism has four principles which it advocates
businesses should adopt to enable responsible behaviour whilst increasing profits and
competitiveness. The 3 rd principle is to:
“Shift the structure of the economy from focusing on the processing of materials and the
making of things to the creation of service” (Lovins and Lovins, 2001, p. 101).
Vargo’s work on Service-Dominant (S-D) Logic, described as the application of competences
(knowledge and skills) for the benefit of another party, focuses on the transition in understanding
business from a ‘goods’ to a ‘service’ perspective, where the exchange is thought of in terms of
‘value’ rather than tangible product. Vargo highlights the use of the singular “service” as opposed to
the plural “services” which he reports represents a shift from thinking about value in terms of
operand resources—usually tangible, static resources that require some action to make them
valuable – to operant resources – usually intangible, dynamic resources that are capable of creating
value (Vargo and Lusch, 2008, Vargo et al., 2008).
Sheth and Sharma (2008) also expounded Vargo and Lusch’s S-D Logic, and described it in terms
of solutions selling – the customer wants his problem solved, and an ongoing service solution has
more value in this regard than the one-off purchase of a product. This paper noted a fall in productfocused
sales forces and an increase in customer-focused forces, and made the point in its
conclusion that these changes are due to shifts in products to service, customers, sales processes,
and technology.
Product Service Systems (PSS) are ‘‘a system of products, services, supporting networks and
infrastructure that is designed to be: competitive, satisfy customer needs and have a lower
environmental impact than traditional business models’’. At its core, the PSS concept is based upon
a fundamental shift in the relationship between the producers and the consumers of a product or
service. Instead of being centred on ‘traditional’ forms of sale, ownership, consumption and disposal
of products, a PSS focuses on the delivery of a ‘function’ to the customer (Williams, 2007, p. 1093).
Williams (2007) listed the three broad categories of PSS which previous classifications use:
product-oriented services, where the business model is still largely associated with the sale of
products to consumers, with some additional services; use-oriented services, where products
remain central, but are owned by service providers and made available to users in different forms;
and result-oriented services, where customers and service providers agree on a desired outcome
without specifying the product involved. Further sub-divisions have been suggested, and Williams
considers each of these in respect of the automotive industry – see examples below.
Lowe (1997, p. 57) discussed how industrial ecology includes concern for issues such as the
extension of product life and “the closely allied strategic shift toward selling services rather than
products”.
As virtual, online methods of business and leisure continue to expand, so will the potential to
disconnect the physical product and use of materials from the true service desired by consumers.
Various services are being created to maximise the potential for the online provision of ‘value’. In
the business field online market-places, Internet-banking, etc are replacing the need to go to outlets
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for purchasing products or accessing services. The physical products, along with their packaging
and the material and energy required to collect or deliver them are becoming increasingly
redundant. In the entertainment field, music is increasingly downloaded and streamed online rather
than bought on CD or other physical media; computer games are played online with others, and
virtual social-networking is reducing the need to meet people in person.
Illustration – television sets (TVs): the current domestic market in Europe is dominated by the
purchase of TVs (sometimes several per household concurrently), predominantly new rather than
second-hand. TV manufacturers and retailers make more profit for selling more units. If TVs are
leased or rented from retailers, and manufacturers are included in this system (e.g. through
Producer Responsibility legislation), then the profit motivation would be shift to increasing product
durability rather than product sales, by improved design and build quality, and maintenance of units
to reduce faults.
What definition should ZeroWIN adopt for use in industrial networks and why?
An alternative to the traditional basis of economic exchange, tangible products, whereby instead a
level of service is provided. The aim is to maintain or increase value whilst reducing material and
waste flows.
• Who uses it in industrial networks?
Industrial companies, and to some extent city and municipal authorities.
Which industrial sectors?
Various sectors to date – see examples below.
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding
Legislation / Policy Relevance to industrial Comment
measure
networks
e.g. on effectiveness of implementation
ELV Directive (2000) Automotive industry Effective, but only a minor element
of selling service rather than
product.
Non-legally binding
Policy measure Relevance to industrial
networks
Various – see examples
below.
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Comment
e.g. on method and effectiveness of
implementation and scope to extend
• What are its advantages? • What are its disadvantages?
This concept appeals to the minimalist lifestyle
some prefer, however –
It goes against the established materialistic
culture most people are currently used to.
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
Williams (2007) highlighted the limitations of strategies based on incremental technological
innovation as a solution to the economic and environmental problems of the automotive industry,
and suggested that behavioural and system-level changes, via product service systems (PSS), are
a potential means of achieving long term sustainability. PSS initiatives in the automotive industry
can be summarised under the three broad PSS types:

• Product-oriented services: the EU ELV Directive (2000); provision of fuel and energyefficiency
information, for example Miles Per Gallon estimates; Volvo Buses in Sweden has
taken this as far as providing driver training to its customers on how to conserve fuel by
driving in a more efficient manner, which has been shown to reduce fuel consumption by up
to 16%;
• Use-oriented services: different types of car sharing and vehicle leasing schemes;
• Result-oriented services: pay-per-km/mile based car sharing schemes; integrated mobility
schemes, which provide a complete transport solution. The island of Texel in the
Netherlands introduced solar power-assisted bicycles and tricycles as part of its chain
mobility system. The German national rail company Deutsche Bahn has announced that it
intends to provide the entire chain of mobility in the future, by integrating trains, car sharing
and leasing and a ‘call a bike’ service.
The New Zealand Trust’s review of emerging trends in support of zero waste included selling
service rather than product, with the statement that:
“Most photocopiers, some carpets, some computers and now some washing machines are
leased to clients rather than sold. As a result the manufacturer has a vested interest in building
higher quality, longer lasting products – thus helping society use less materials” (Snow and
Dickinson, 2000, p. 7).
Jacob and Ulaga (2008) reported on an interview with a major industrial company that had recently
undergone the transition from a product to a service focus. ThyssenKrupp is involved in steel
production and industrial goods and services, and its Services segment had a revenue of 16 billion
Euros in 2007. The company changed the orientation and focus of the business to materials and
now offers “integrated service bundles”. Jacob and Ulaga commented that “it’s only recently that the
issue of transitioning from products to services has moved ahead on top management's agenda,
[and] the example of ThyssenKrupp illustrates the timeliness of scholarly research in this area” (p.
249).
In Europe and Asia the company Schindler leases ‘vertical transportation services’ instead of selling
elevators. Schindler provides its customers what they really want, which is not an elevator but the
service of being moved up and down. Similarly Electrolux in Sweden leases the performance of
specialist floor cleaning and commercial food service equipment rather than the equipment itself
(Lovins and Lovins, 2001, p. 105).
Lovins and Lovins (2001) also reported on the Company Interface’s carpet product ‘Solenium’ – the
company prefers to sell “floor covering services rather than new carpet. People want to walk on and
look at carpet, not own it” (p. 107). Interface retains ownership of the carpet tiles and replace only
the 10-20% that show 80-90% of the wear.
The following examples are not strictly applications in industrial networks themselves, but due to the
nature of this topic being the mechanism by which industrial outputs are delivered to the consumer
they are relevant:
• Car sharing schemes, or ‘car clubs’, also thought of as ‘pay-as-you-go cars’ have been
introduced in some areas in recent years. They appeal to those who do not want to own a
car but may need to use one occasionally. There are designated collection and drop-off bays
across a city and charges are made only for the time the car is used. As using such a
scheme avoids running and maintenance costs it can offer a flexible and cost-effective
alternative to car ownership. The organisation that promotes car clubs in the UK claims that
each car club car replaces around 10 private cars, reducing congestion and environmental
impact (see www.carclubs.org.uk; Williams, 2007, p. 1099);
• Bicycle sharing systems are similarly becoming popular in cities in Europe. Principal
examples are those in Paris (Velib), Barcelona (Bicing) and Copenhagen (Bycyklen), with a
city-wide system in London due in 2010;
• Entertainment rental services offer an alternative to purchase or traditional rental companies.
A level of service is provided, typically measured by ‘number of discs at any one time’, which
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can include movies, TV shows or games. Some popular schemes in the UK are operated by
Love Film, Amazon, Blockbuster and Tesco.
It must be noted that these services are a way of life and are distinct from the use of more
traditional ‘rental’ or ‘hire’ companies. Using the services above people have daily access to the
products in line with their needs, without having to purchase a car, bicycle or ever-growing
collection of DVDs. Sheth and Sharma (2008) referred to this shift of customers from ownership
towards on-demand, subscription or ‘pay-for-usage’ models.
• How successful has it been in industrial networks?
Some success has been noted above; further success may be limited by the materialistic nature of
society, which will take time to overcome.
• Discussion
Is this topic/concept one for use in ZeroWIN?
Yes, where possible. This concept is inline with the ‘sustainable business’ principles of ZeroWIN
and is one of the methods that can contribute to achieving ZeroWIN’s goals and targets.
Is it unproven e.g. not enough data?
No.
Is it unlikely to be successful based upon previous experience?
It is likely to be successful to varying degrees depending on the sector.
Jacob and Ulaga, 2008. The transition from product to service in business markets: An agenda for
academic inquiry. Industrial Marketing Management, 37(3) 247-253.
Lovins, L.H. and Lovins, A.B., 2001. Natural Capitalism: Path to Sustainability? Corporate
Environmental Strategy, 8(2), 99-108.
Lowe, E.A., 1997. Creating by-product resource exchanges: strategies for eco-industrial parks.
Journal of Cleaner Production, 5(1-2), 57-65.
Sheth, J.N. and Sharma, A., 2008. The impact of the product to service shift in industrial markets
and the evolution of the sales organization. Industrial Marketing Management, 37(3), 260-269.
Snow, W. and Dickinson, J., 2000. The End of Waste: zero waste by 2020. Zero waste New
Zealand Trust. [Online]. Available at:
http://www.zerowaste.co.nz/assets/Reports/TheEndofWaste.pdf [accessed 6 August 2009]
Vargo, S.L. and Lusch, R.F., 2008. From goods to service(s): Divergences and convergences of
logics. Industrial Marketing Management, 37(3) 254-259.
Vargo, S.L., Maglio, P.P. and Akaka, M.A., 2008. On value and value co-creation: A service
systems and service logic perspective. European Management Journal, 26(2008), 145-152.
Williams, 2007. Product service systems in the automobile industry: contribution to system
innovation? Journal of Cleaner Production, 15(2007), 1093-1103.
2.2.6 End of life management
Note: it has been decided that end of life management activities are outside of the boundary
of an Industrial Network for ZeroWIN purposes, but must still be considered for a complete
assessment of the impacts of the activities of the Industrial Network.
• What is end of life management?
What are relevant definitions?
The “end of life” (often referred to as “EOL”) is defined as:
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“the point at which a product is no longer used for its intended purpose in the physical form in
which it was originally manufactured” (Anon 2008).
The end of life phase of a product (see Figure 16) begins when the user returns or disposes
products due to a variety of reasons ranging from malfunction to the arrival of new and better
products in the market. End of life management includes all those activities required to retire a
product after the user discards it after its useful life.
Figure 16. Product lifecycle. Parlikad, 2006, p.12.
The most relevant definitions for end of life Management can be found in Directive 2008/98/EC
(Anon 2008) and the WEEE Directive (Anon 2003). However for this section the WEEE Directive
was chosen, as it deals with Waste Electrical and Electronic Equipment in detail and therefore has a
higher relevance within ZeroWIN, as the electronics industry is one of four significant industries
within the project.
a) ‘Electrical and Electronic Equipment’ or ‘EEE’ means equipment which is dependent on
electric currents or electromagnetic fields in order to work properly and equipment for the
generation, transfer and measurement of such currents and fields falling under the
categories set out in Annex IA and designed for use with a voltage rating not exceeding
1.000 Volts for alternating current and 1.500 Volts for direct current;
b) ‘Waste Electrical and Electronic Equipment’ or ‘WEEE’ means electrical or electronic
equipment which is waste within the meaning of Article 1(a) of Directive 75/442/ EEC,
including all components, subassemblies and consumables which are part of the product at
the time of discarding;
c) ‘Prevention’ means measures aimed at reducing the quantity and the harmfulness to the
environment of WEEE and materials and substances contained therein;
d) ‘Re-use’ means any operation by which WEEE or components thereof are used for the
same purpose for which they were conceived, including the continued use of the equipment
or components thereof which are returned to collection points, distributors, recyclers or
manufacturers;
e) ‘Recycling’ means the reprocessing in a production process of the waste materials for the
original purpose or for other purposes, but excluding energy recovery which means the use
of combustible waste as a means of generating energy through direct incineration with or
without other waste but with recovery of the heat;
f) ‘Recovery’ means any of the applicable operations provided for in Annex IIB to Directive
75/442/EEC;
g) ‘Disposal’ means any of the applicable operations provided for in Annex IIA to Directive
75/442/EEC;
h) ‘Treatment’ means any activity after the WEEE has been handed over to a facility for
depollution, disassembly, shredding, recovery or preparation for disposal and any other
operation carried out for the recovery and/or the disposal of the WEEE.
What are the key concepts?
According to Thierry et al. (1995) end of life management includes Product Recovery Management,
which is defined as:
“The management of all used and discarded products, components, and materials with an
objective of recovering as much of the economic (and ecological) value as reasonably
possible, thereby reducing the ultimate quantities of waste”.
In contrast to Product Recovery Management, end of life management also includes the
incineration and landfill of products, which comes to pass if a returned product and/or its
components or modules cannot be recovered by any of five recovery operations, described by
Thierry et al. (1995):
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• Repair and Re-use, the purpose is to return used products to working order. The quality of
the repaired products could be less than that of the new products;
• Refurbishing, the purpose is to bring the quality of used products up to a specified level by
disassembly to the module level, inspection and replacement of broken modules.
Refurbishing could also involve technology upgrading by replacing outdated modules or
components with technologically superior ones;
• Remanufacturing, the purpose is to bring used products up to quality standards that are as
rigorous as those for new products by complete disassembly down to the component level,
extensive inspection and replacement of broken/outdated parts;
• Cannibalisation, the purpose is to recover a relatively small number of reusable parts and
modules from the used products, to be used in any of the three operations mentioned above;
• Recycling, the purpose is to reuse materials from used products and parts by various
separation processes and reusing them in the production of the original or other products.
In order to select the best option, Krikke et al. (1998) states that the decision-maker has to take into
account its technical, economic and ecological feasibility. Technical feasibility means the technical
possibility to realise a particular recovery option. Economic feasibility reflects the business and
economic potential and ecological feasibility follows from environmental legislation. Therefore it is
not possible to indicate which strategy has the highest overall efficiency (Jofre & Morioka, 2005).
Parlikad (2006) shows the hierarchy of product recovery options in order of preference for
environmental sustainability (Figure 17).
Figure 17. Hierarchy of product recovery options. Parlikad, 2006, p. 17.
What definition should ZeroWIN adopt for use in industrial networks and why?
Although there is quite an extensive literature concerning end of life management, no exact
definition has been found. After reviewing the literature, it has been made clear though, that end of
life management includes all actions, that deal with products at their end of life stage and therefore
is best described as:
“The management of all activities required, at the end of life phase of a product”.
• Who uses it in industrial networks?
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Which industrial sectors?
End of life management is very common in the electronics industry and the automotive industry and
various methods on how to deal with their end of life products have already been established. Due
to its diversity, the end of life management of electronics usually happens in huge, interlinked
recycling networks, where different companies are specialised on specific recycling fractions. In
developing and industrialising countries this recycling network is frequently organised locally in
informal structures, where many small backyard businesses are specialised on sub-steps of the
dismantling, sorting, reuse, repair and recycling chain (Schischke & Griese, 2004).
End of life management in the construction industry is an upcoming process although it’s still in its
early stages at the moment. The same goes for the photovoltaic industry, where end of life
management is not yet an issue, as this is a pretty new sector of industry and therefore PV modules
have not yet arrived at their end of life stage.
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding
Legislation / Policy measure
A considerable number of laws and/or regulations is currently in effect to protect the environment.
Several countries in Europe are enforcing environmental regulations to lower the growing amount of
waste and force companies to assume responsibility for the entire life cycle of the product (Yoruk,
2004).
For instance, in 2000, the European Parliament and Council of Ministers adopted the End of Life
Vehicle (ELV) Directive that sets clear quantified targets for re-use, recycling and recovery of
vehicles and components. Currently, the Directive 2000/53/EC regulates the ELV management in
27 countries in Europe, and for the forthcoming years, more accession countries are foreseen.
Because of the international nature of the automotive industry, the Directive has affected industries
beyond the EU. Hence, countries with important national-based automotive industry are moving
towards the accomplishment of this legislation, in order to keep their competitiveness in European
markets (Fergusson, 2007).
The Battery Directive, covering batteries and accumulators and waste batteries and accumulators,
officially repealing the 1991 Battery Directive, was adopted on 6 th September 2006 by the European
Parliament and focuses on placing batteries on the market, end of life, end-user information, and
product-specific information (labelling requirements) (Anon, 2008).
Directive 2002/96/EC on Waste Electrical and Electronic Equipment (WEEE) along with the
complementary Directive 2002/95/EC on the Restriction of the use of certain Hazardous
Substances in electrical and electronic equipment (RoHS) encourage the end of life management of
the product, eco-design, life cycle thinking and extended producer responsibility. The directive
specifies collection targets for local authorities as well as recovery and recycling targets for the
producers to be met by the given deadlines. Also the WEEE Directive specifies the maximum
proportion of the product that can be disposed. It requires that 70% by weight of EOL electronic
products should be recovered and at least 50% of the recovered WEEE should be reused or
recycled (Anon, 2003).
Although the WEEE Directive basically covers all electrical and electronic equipment used by
consumers or intended for professional use, businesses with electrical and electronic equipment to
dispose of may also have obligations under the WEEE regulations.
The revised Waste Framework Directive (Anon, 2008) adopted by the European Parliament and the
Council of the EU on 20 October 2008, includes a provision by which certain specified waste shall
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cease to be waste after it has undergone a recovery operation and complies with the following
conditions:
a) The substance or object is commonly used for specific purposes;
b) A market or demand exists for such a substance or object;
c) The substance or object fulfils the technical requirements for the specific purposes and
meets the existing legislation and standards applicable to products; and
d) The use of the substance or object will not lead to overall adverse environmental or human
health impacts.
Unlike WEEE, end of life vehicles or packaging waste, there is no specific European legislation on
Construction and Demolition (C&D) waste.
• What are its advantages? • What are its disadvantages?
Toeffel (2003), while emphasising the strategic
importance of Product Recovery Management,
notes that even in many unregulated industries,
some manufacturers are voluntarily assuming
more responsibility for their end of life products,
driven by customer demand and cost
efficiencies, which therefore can lead to an
improved image of the company.
In addition, the shift from selling products to
selling sets of services makes the re-use of
recovered materials, parts, and products
desirable. Besides ecological and economic
factors, customer awareness is creating
opportunities for “green marketing” and new
markets for returned goods. Consumers are now
more aware of environmental issues and the
potential problems that could arise by neglecting
it. Realising this, manufacturers have started to
manufacture products that are environment
friendly to gain advantage in the marketing
platform against their competitors.
There is also an added incentive of lower
purchasing/inventory costs due to Re-use of
components from end of life products
(Fleischmann et al., 2000). Returned products
may enter the production process again as input
resources, either in the original form or as
components and modules after disassembly.
Many firms have reported increased profits by
reselling returned products in secondary markets
after refurbishment (Guide et al., 2000).
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A general disadvantage of end of life
management are the costs. End of life
management is a pretty young field. The
environmental regulations intensified over the
last couple of years. Therefore end of life
management has to be integrated in already
existing organisational structure which
generates especially high costs.
Also, end of life management often requires
transport of some sort, as the collected products
are very often sent to recoverers, who execute
recovery activities.
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
Several companies have started recognising the strategic value of integrating environmental
principals into their business policies and have developed innovative product recovery programmes
to recover and reuse their end of life products. There were no studies found that deal with the
application of end of life management in industrial networks, but there are examples of companies
on the effects of integrating end of life management into their actions. For instance:

• Canon has started many environmental initiatives to reduce the environmental burden of its
products since 1990. Canon has been collecting and recycling toner cartridges worldwide
since 1990 and bubble jet printer cartridges in Japan since 1996. Over 17.000 tons of toner
and 51 tons of bubble jet cartridges were collected; and 100 percent of them recycled and/or
reused in 2002. In the same year, Canon established a fully automated recycling plant in
Japan where the collected cartridges are placed into equipment which automatically sorts
materials into groups for steel, aluminium, high-impact polystyrene and other types of
plastics. Canon has begun remanufacturing of copying machines in the US since 1992, in
Europe since 1993, and in Japan 1998. After rigorous testing, used copying machines' parts
are restored to the same quality level of new parts. 92 percent of the collected machines are
remanufactured or recycled in 2008; and all of remanufactured copying machines are built
using 50 percent or more recycled parts by weight (Anon, 2009).
• Since 1987, BMW has been reclaiming ceramic and valuable metals from the used catalytic
converters. BMW also remanufactures major components on vehicles including engine,
starter motor, alternator, and water pump. The used components are brought to the same
quality level as the new parts and resold at 30-50 percent lower price than new one
(Johnson & Wang, 1995). In addition, BMW has set up vehicle take-back and recycling
networks in cooperation with dismantlers in Germany and Japan and has been developing
such networks in other European countries. BMW has also established the “BMW Group
Recycling and Dismantling Centre," which is responsible for developing recycling-optimised
product design and improving end of life vehicle recycling. As in 2003, almost 100 percent of
all BMW cars can be recycled or remanufactured (Anon, 2004).
• How successful has it been in industrial networks?
Not applicable.
• What are the key documents that discuss and report on it?
Topic Title Reference
Disassembly Flexible Disassembly tools Seliger et al. (2001)
Disassembly Robots for Disassembly Kopacek & Kopacek (1999)
Disassembly State of the Art and Future
Trends in Intelligent
Disassembly
Kopacek & Kopacek (2002)
Disassembly An approach for estimating
the end of life product
disassembly effort and cost
Das et al. (2001)
Disassembly Review of literature on
disassembly algorithms and
design for disassembly
guidelines for product design
Desai & Mital (2003)
Disassembly Disassembly of electronic
products
Feldmann & Scheller (1994)
Disassembly Disassembly of products Gupta & Mclean (1996)
Disassembly Disassembly sequencing. A
Survey
Lambert (2003)
End of life decision making The “Green Design Advisor” Feldmann et al. (1999)
End of life decision making Product End of life Strategy
Categorization Design
Rose and Ishii (1999)
End of life decision making Multi-criteria decision-aid
approach for product
Bufardi et al. (2004)
End of life management of Preliminary study for the Kourumpanis et al. (2008)
C&D waste
management of construction
and demolition waste
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End of life management of
WEEE
European end of life systems
for WEEE
Managing of WEEE in Europe,
the U.S.A., Japan and China
• Discussion
End of life management of
Electrical and Electronic
Equipment
European end of life systems
for Electrical and Electronic
Equipment
A multinational perspective to
managing end of life
electronics
117
Knoth et al. (2001)
Nagel et al. (1999)
Herold (2007)
Is this topic/concept one for use in ZeroWIN?
Whether end of life management is for use in ZeroWIN or not, basically depends on how
widespread that topic is seen. Strictly speaking end of life management which actually includes
prolongation of product-use as well as reverse logistics, is not directly related to ZeroWIN as end of
life management includes all activities required to retire a product after the user discards it after its
useful life. As already mentioned the end of life phase of a product begins when the user returns or
disposes products due to a variety of reasons. Figure 16 above shows the life cycle of a product,
including the different stages, a product goes through. Basically ZeroWIN deals with the stages
before the usage, which include the design and manufacture. One goal of the ZeroWIN project is to
establish the exchange of by-products, energy, water and materials between separated sectors in
such way, that the waste from one industry becomes raw material for another. According to this,
ZeroWIN does not concern the consumer stage and subsequent stages of the life cycle.
A central element of the ZeroWIN project is the circumstance that it deals with wastes and byproducts
of industries. If we assume that a possible output of end of life management are recycled
raw-materials, these materials cannot be defined as waste or by-products, they are a valuable,
intended output of the end of life process. According to this, only any by-product or wastes of the
recycling process qualify for an exchange to other sectors. Even if the end of life management of
broken products of the production process is concerned, which only deals with Business-to-
Business (b2b) transactions, end of life management is not the right definition because strictly
speaking these products have not had a life stage.
As ZeroWIN deals with the production process and as the key to successful end of life management
is improved product design, end of life management may be of importance for ZeroWIN. If the
product developer is aware of end of life options and end of life impacts of the products he is able to
take these aspects into consideration and to design a product that has a minimal impact at end of
life.
Note: it has been decided that end of life management activities are outside of the boundary
of an Industrial Network for ZeroWIN purposes, but must still be considered for a complete
assessment of the impacts of the activities of the Industrial Network.
References:
Anon, 2003. Directive 2002/96/EC of the European Parliament and of the Council of 27 January
2003 on waste electrical and electronic equipment (WEEE). Official Journal of the European Union,
L 037, p.24-39.
Anon, 2008, Directive 2008/98/EC EC of the European Parliament and of the Council of 19
November 2008 on waste and repealing certain Directives. [Online]. Available at:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:312:0003:0030:en:PDF
[accessed 16 September 2009]
Anon, 2008, End of Waste Criteria. [Online]. Available at:

http://susproc.jrc.ec.europa.eu/documents/Endofwastecriteriafinal.pdf [accessed 16 September
2009]
Anon, 2004. BMW Group. Sustainable Value Report 2003/2004. [Online]. Available at:
http://www.bmwgroup.com [accessed 24 August 2009]
Anon, 2008. Literature Review Flat Panel Displays: End of Life Management Report. [Online].
Available at:
http://your.kingcounty.gov/solidwaste/takeitback/electronics/documents/FPDReport.pdf
[accessed 6 August 2009]
Anon, 2008. Establishing harmonised methods to determine the capacity of all portable and
automotive batteries and rules for the use of a label indicating the capacity if these batteries.
[Online]. Available at:
http://ec.europa.eu/environment/waste/batteries/pdf/battery_report.pdf [accessed 4 August 2009]
Anon, 2009. Canon Sustainability Report 2008. [Online]. Available at:
http://www.canon.com/environment/report/pdf/report2008e.pdf [accessed 24 August 2009]
Bufardi, A., Gheorghe, R., Kiritsis, D. & Xirouchakis, P., 2004 Multicriteria decision-aid approach for
product. International Journal of Production Research, [Online]. 42(16). Abstract from
IngentaConnect database. Available at:
http://www.ingentaconnect.com/content/tandf/tprs/2004/00000042/00000016/art00002 [accessed
17 July 2009]
Das, S., Yedlarajiah, P. & Narendra, R., 2000 An approach for estimating the end of life product
disassembly effort and cost. International Journal of Production Research, [Online]. 38(3). Abstract
from IngentaConnect database. Available at:
http://www.ingentaconnect.com/content/tandf/tprs/2000/00000038/00000003/art00009 [accessed
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Desai, A. & Mital, A., 2003. Review of literature on disassembly algorithms and design for
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2.2.7 Eco-labelling
• What is eco-labelling?
Eco-labelling is a voluntary method of environmental performance certification and labelling that is
practiced around the world. Basically, an eco-label is a label which identifies overall environmental
preference of a product (i.e. good or service) within a product category based on life cycle
considerations. Eco-labelling is only one type of environmental (performance) labelling, and refers
specifically to the provision of information to consumers about the relative environmental quality of a
product. There are many different environmental performance labels and declarations being used or
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contemplated around the world (GEN, 2004).
In contrast to a self-styled environmental symbol or claim statement developed by a manufacturer
or service provider, an eco-label is awarded by an impartial third party to products that meet
established environmental leadership criteria.
What are relevant definitions?
The standards of the series ISO 14000 present three types of environmental declarations which can
be associated with products or services: the eco-labels (type I), the auto-declarations (type II) and
the eco-profiles (type III).
Voluntary Environmental Performance Labelling - ISO Definitions
Type I - Eco-labels hold place of official recognition of the ecological qualities of a product,
according to a sample group of criteria defined beforehand and verified by a certifying body. These
requirements are defined by categories of products and are regularly revised, in agreement with the
various stakeholders. Generally, the attribution of an eco-label is the consequence of a voluntary
initiative on behalf of the company.
Type II - Diverse assertions can be communicated by a company, in a free way and under the
unique responsibility of the producer; we qualify them as auto-declarations, without real scientific
value.
Type III - The eco-profile presents quantitative data on the environmental impacts of a product,
generally in the form of graph and in an external purpose of communication. The initiative of
attribution is mainly voluntary on behalf of a company. Experts allow making the analysis of the
environmental impacts of the product. The eco-profiles inform the consumer about the impacts of a
product and about the possible efforts realised by an industrialist to reduce them.
Further, the ISO has identified that these labels share a common goal, which is:
“...through communication of verifiable and accurate information, that is not misleading, on
environmental aspects of products and services, to encourage the demand for and supply of
those products and services that cause less stress on the environment, thereby stimulating the
potential for market-driven continuous environmental improvement.”
LCA methods (see section 2.3.1: Life Cycle Assessment) can provide essential information for ecoprofiles
and simplified assessments.
What are the key concepts?
Eco-labelling has become a useful tool for governments in encouraging sound environmental
practices, and for businesses in identifying and establishing markets (i.e. domestic and sometimes
international) for their environmentally preferable products. Many countries now have some form of
eco-labelling in place, while others are considering programme development. Commitment to clear
objectives has been critical to the success of eco-labelling programmes around the world. While
programme officials may express them differently, three core objectives are generally established
and pursued:
• Protecting the environment;
• Encouraging environmentally sound innovation and leadership; and
• Building consumer awareness of environmental issues.
Based on the experiences of successful eco-labelling programmes and pertinent ISO work, a series
of principles can be identified as being critical to an effective and credible programme:
• Voluntary participation: the decisions of manufacturers, importers, service providers and
other businesses to participate in an eco-labelling programme must be voluntary;
• Compliance to environmental and other relevant legislation;
• Consideration of "fitness for purpose" and level of overall performance;
• Besides legislative compliance, it is also important to address the quality and performance of
a product that is to be considered for eco-labelling. The credibility of both the eco-label and
the eco-labelling programme could suffer if products bearing the eco-label don't demonstrate
comparable quality and reasonable performance in relation to alternatives;
• Based on sound scientific and engineering principles;
• Maintenance of stringent technical requirements based on good ecological science assures
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consumers that they can trust the eco-label and licensing applicants that they will be treated
fairly. Further, there is a strongly prevailing view that product environmental criteria should
be based on indicators arising from life cycle considerations;
• Criteria must distinguish leadership;
• Criteria must be credible, relevant, attainable, and measurable/verifiable;
• Independence;
• A credible eco-labelling programme should be operated by an organisation independent of
vested commercial or other interests;
• Open and accountable process;
• Flexibility;
• In order to be credible and effective, programmes must operate in a business-like and costeffective
manner consistent with market forces and requirements. They must be able to
respond in a timely way to technological and market changes; and
• Consistency with ISO 14020 and ISO 14024 guiding principles.
What definition should ZeroWIN adopt for use in industrial networks and why?
An eco-label is a label which identifies overall environmental preference of a product (i.e. good or
service) within a product category based on life cycle considerations.
According to the series ISO 14000, it corresponds to the type I declarations.
• Who uses it in industrial networks?
Eco-labels evaluate environmental performance of products and services. Therefore, its use in the
specific context of industrial networks is not particularly relevant. However, efforts to meet the
criteria for obtaining an eco-label can impact design and manufacturing of products and services.
Which industrial sectors?
Different product categories fall within the scheme of existing eco-labels. Regarding industrial
sectors of interest to ZeroWIN, the construction sector (through construction materials eco-labels)
and the high tech sector (through electronic appliances eco-labels) are subject to eco-labelling
criteria (see eco-labelling criteria in the literature below).
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding
Legislation / Policy measure
Although eco-labels are not mandatory, many links exist with other environmental
regulations/standards.
Non-legally binding
Policy measure
The European eco-label is a labelling initiative that was established in 1992 and is
denoted by the “flower”. It was created as a symbol that indicates and guides
consumers to products that have been independently verified and found to comply
with strict ecological and performance criteria. In the EU, the eco-label is one tool
amongst other tools and measures implemented in the context of the Sustainable
Consumption and Production Action Plan (e.g. GPP, EMAS, etc.).
The Nordic Swan is the official Nordic eco-label, introduced by the Nordic Council
of Ministers.
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The Blue Angel (Blauer Engel) is a German certification for products and services
that have environmentally friendly aspects.
Other programmes:
• Australia (Australian eco-label programme)
• Austria (Austrian eco-label, www.umweltzeichen.at)
• Brazil (Brazilian eco-labelling)
• Croatia (environmental label)
• China Environmental United Certification Center (China Environmental Labelling)
• Czech Republic (Environmental Choice)
• Hong Kong (Green Label Scheme)
• Hong Kong (Hong Kong Federation of Environmental Protection)
• India (Ecomark)
• Indonesia (Indonesian Eco-label Programme)
• Japan (Eco Mark)
• Korea (Environmental Labelling)
• North America (Environmental Choice Ecologo)
• New Zealand (Environmental Choice New Zealand)
• Philippines
• Chinese Taipei (Green Mark)
• Sweden (Good Green Buy)
• Singapore (Green Label)
• Sweden (TCO)
• Spain (AENOR-Medio Ambiente)
• Thailand (Thai Green Label)
• Ukraine (Living Planet)
• USA (Green Seal)
Examples of “energy” labels:
• EU energy labels (http://ec.europa.eu/energy/demand/legislation/domestic_en.htm);
• EU energy labelling of buildings (http://www.buildingsplatform.eu;
http://www.epbd-ca.org); and
• Energy labelling of buildings in Austria
(http://www.energielabel.at/energielabel/index.php?id=1185).
• What are its advantages? • What are its disadvantages?
The “ecological” certification brings to the
manufacturer or the service provider:
• A reliable argument: the controls of products
and compulsory regular audits of factories by
eco-labels, clear and reliable information
delivered on products, are many elements
which give trust to the customers;
• An answer to an expectation of the market:
by choosing a product or an eco-labelled
service, the consumer participates in his
level in the environmental protection;
• A brand of commitment: eco-labels allow
asserting with the customers and groups of
interest as the associations of consumers
and environmental protection the
commitment in favour of products or services
more environment-friendly; and
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Some difficulties can appear:
• The definition for the eligible categories in the
eco-label is unclear;
• The choice of the criteria can be debated;
• The lack of control of the certified products;
and
• The true environmental impact isn’t
measurable.

• An accompaniment of the public politics: the
adoption of eco-labels allows participation in
the environmental initiatives organised by the
authorities in sustainable development.
• What are the key documents that discuss and report on it?
Topic Reference
General
literature
European
eco-label
Eco-label
criteria:
general
resources
Eco-label
criteria:
examples for
personal
computers
Global Eco-labelling Network, 2004. Introduction to Eco-labelling. [Online].
Available at: http://www.globaleco-labelling.net/pdf/pub_pdf01.pdf [Last
accessed 3 September 2009]
Allison C., Carter A., 2000. Study on different types of Environmental
Labelling (ISO Type II and III Labels): Proposal for an Environmental Labelling
Strategy. [Online]. Available at:
http://ew.eea.europa.eu/ManagementConcepts/communication/labels/nonfood
/label23.pdf/ [Last accessed 3 September 2009]
Huhtinen, K., 2009. Instruments for Waste Prevention and Promoting Material
Efficiency: A Nordic Review. Available at:
http://www.norden.org/is/utgafa/utgefid-efni/2009-532 [Last accessed 14
August 2009]
UNOPS, 2009. A Guide to Environmental Labels – for Procurement
Practitioners of the United Nations System. [Online]. Available at:
http://www.ungm.org/SustainableProcurement/toolsUN/Env_Labels_Guide.pdf
Nordic Eco-labelling, 2001. Eco-labelling: Steps Towards Sustainability.
[Online] Available at: http://www.eco-label.nu/sfiles/88/4/file/steps.pdf [Last
accessed 3 September 2009]
Commission of the European Communities, 2008. Communication from the
Commission to the European Parliament, the Council, The European
Economic and Social Committee and the Committee of the Regions on the
Sustainable Consumption and Production and Sustainable Industrial Policy
Action Plan. [Online]. Available at: http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0397:FIN:EN:PDF
[Last accessed 3 September 2009]
AEAT, 2004. The Direct and Indirect Benefits of the European Eco-label –
Final Report to DG Environment. [Online]. Available at :
http://ec.europa.eu/environment/eco-label/about_ecolabel/reports/benefitsfinalreport_1104.pdf
[Last accessed 3 September 2009]
Locret M.-P. and De Roo C. 2004. The EU Eco-label – less hazardous
chemicals in everyday consumer products. [Online] Available at:
http://ec.europa.eu/environment/eco-label/about_eco-
label/reports/beucstudy2004_en.pdf [Last accessed 3 September 2009]
Nordic eco-labelling. (Website) - Criteria. [Online]. Available at:
http://www.svanen.nu/Default.aspx?tabName=CriteriaEng&menuItemID=7056
Global eco-labelling Network. (Website). Categories and Criteria. [Online].
Available at: http://www.eco-label.nu/sfiles/88/4/file/steps.pdf [Last accessed 3
September 2009]
Commission of the European Communities, 2005. Establishing ecological
criteria and the related assessment and verification requirements for the
award of the Community eco-label to personal computers. [Online]. Available
at: http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:115:0001:0008:EN:P
DF [Last accessed 3 September 2009]
Nordic Eco-labelling, 2007. Swan Labelling of Personal Computers. [Online].
Available at:
http://www.svanen.nu/sismabmodules/criteria/getfile.aspx?fileid=102181001
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Eco-label
criteria:
examples for
construction
material
• Discussion
[Last accessed 3 September 2009]
Nordic Eco-labelling, 2004. Swan Labelling of Durable Wood. [Online].
Available at:
http://www.svanen.nu/sismabmodules/criteria/getfile.aspx?fileid=106795001
[Last accessed 3 September 2009]
Nordic Eco-labelling, 2006. Swan Labelling of Floor Coverings. [Online].
Available at:
http://www.svanen.nu/sismabmodules/criteria/getfile.aspx?fileid=92673001
[Last accessed 3 September 2009]
Nordic Eco-labelling, 2008. Swan Labelling of Windows and Exterior Doors.
[Online]. Available at:
http://www.svanen.nu/sismabmodules/criteria/getfile.aspx?fileid=103022001
[Last accessed 3 September 2009]
Is this topic/concept one for use in ZeroWIN?
An eco-label is generally used to communicate about the environmental performances of a product.
Its direct use, in the context of reducing waste in industrial networks, is uncertain. However, as
mentioned above, efforts made by an industry to meet eco-label criteria impacts design and
manufacturing of products, and can potentially influence the whole industrial network. Some ecolabels
include waste reduction criteria, which could be of particular relevance to the ZeroWIN
project. Moreover, eco-labelling is often referred to as an effective waste prevention measure; for
instance in the Annex Revised Waste Framework Directive of 2008, or in the Nordic Review on
instruments for waste prevention and promoting material efficiency (Huhtinen, 2009).
Meeting eco-labelling criteria is not the main purpose of ZeroWIN, but it could be a positive
achievement for the pilot projects. To assess the relevance of eco-labels to ZeroWIN, the following
question could be considered: “should achieving (some) eco-labelling criteria be an additional
objective of the ZeroWIN project?” As shown in the list of references, this question might be
particularly relevant to the high-tech sector: eco-labels for laptops have been developed, and it is
one of MircoPro’s (task 6B.1.1) objectives to obtain the European eco-label for their products. Ecolabels
on construction materials are also an interesting input for task 6B.3.1 and 6B.3.2.
Is it unproven e.g. not enough data?
No.
Is it unlikely to be successful based upon previous experience?
Setting an objective for the pilot projects to achieve an eco-label (or the meeting of some ecolabelling
criteria) represents an additional constraint to the project, and therefore an additional risk.
2.3 QUANTIFICATION/ASSESSMENT/MONITORING TOOLS
These tools help enable the methods in section 2.2 to be applied and measured.
2.3.1 Life Cycle Assessment (LCA)
Abbreviations
DG ENV Directorate General Environment
EID Environmental Impact Drivers
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ELCD European Reference Life Cycle Data System
EOL End of life
EPLCA European Platform on Life Cycle Assessment
ILCD International Reference Life Cycle Data System
JRC Joint Research Centre
JRC-IES Joint Research Centre – Institute for Environment and Sustainability
LCA Life Cycle Assessment
LCC Life Cycle Costing
LCI Life Cycle Inventory
LCIA Life Cycle Impact Assessment
LCWE Life Cycle Work Environment
LCA as realisation of life cycle thinking
Engineers, designers or environmental managers address the environmental burdens of products
today in a life cycle consensus. They not only focus on the product composition or at the processing
stage that they are involved with, but also at the whole physical life cycle of the product, from raw
material to end of life (Heiskanen, 2002). Various actors in the society think that the consideration of
environmental impacts from ‘cradle to grave’ is a necessary way of obtaining more sustainable
productions and consumption patterns (Rex and Baumann, 2008).
What is LCA?
Life Cycle Assessment (LCA) is seen as the main instrument for realising life cycle thinking. The
ISO 14040 series of international standards defines LCA as:
‘A method for detecting environmental relevance of products, processes or services in their
life cycle’.
The life cycle comprises raw material acquisition, production, manufacturing use, end of life
treatment, recycling and disposal. Environmental impacts are measured by different techniques.
Results are clustered and weighted to get significant values. LCA helps to identify environmental
performance and supports decision-makers (ISO 14040).
In order to avoid misconceptions, the borderlines to similar terms used in scientific literature have to
be defined:
• ‘Life Cycle Analysis’ is often used as a synonym for LCA, especially in papers published
before standardisation in 1997. Yet, no accorded definition exists in standards or scientific
literature. Therefore this term will not be used further;
• ‘Life cycle cost analysis’ (LCC) is also a similar name. The integration of economic analysis
with LCA is addressed in this innovative method. However, major differences concerning
objectives and methodology exist (Norris, 2001; see relevant section below); and
• Likewise, ‘social life cycle assessment’ (SLCA) is a new methodology that is based on
principles of LCA, though has to be seen as an independent approach (Dreyer et al., 2006;
see relevant section below).
Who uses LCA?
Today LCA is used by companies, industrial organisations, policy makers, governmental and nongovernmental
institutions. Surveys indicate, for example, that about half of the large companies in
Northern Europe and the US report conducting LCAs of their products (Heiskanen, 2002). The
motivation and application of LCA differ among the user groups. Table 9 shows exemplary fields of
application of LCA. It is obvious that LCA is often used as key methodology for other environmental
concepts. More details about motivation and practice in industrial frameworks can be found below.
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LCA is an ambitious tool used for a wide variety of purposes. However, barriers for further
dissemination of this approach have to be borne in mind. It has been repeatedly criticised for being
too complex, time consuming and costly for industrial use (Rex and Baumann, 2008). Barriers often
mentioned are:
• The complex nature of LCA (including high level of required expert knowledge, high data
demands and high costs);
• The limited flexibility of LCA with respect to aim, scope and impacts considered; and
• The uncertainty of the outcome, due to data and methodological choices (De Haes and
Wrisberg, 1997).
Researchers, companies and various organisations have all attempted to address these problems
in order to encourage and facilitate the use of LCA in industry (Rex and Baumann, 2008). An
overview of these promising efforts is described later in this section.
Table 9. Exemplary areas where LCA plays a role. Based on De Haes and Wrisberg, 1997.
Industry applications Policy maker applications
Communication Eco-labelling criteria (e.g. PAS 2050 see
chapter “Carbon Footprinting”)
Environmental reporting Eco-audit procedures
Product comparisons Development of environmental performance
indicators
Product development/improvement Cleaner technology/production programmes
Cleaner technology/production Product policy
Environmental management/strategic planning Waste management policy
Product stewardship Integrated chain management
Development of environmental performance Definition of Best Available Technologies (BAT)
indicators
Benchmarking Benchmarking
Life-Cycle Cost Accounting Eco-tax design
This review is structured in the following way. The following section gives an overview of framework
and methodology of LCA. Tools and databases for implementing LCA for different purposes are
described in the following section. An insight into LCA practice in industrial networks follows. Finally,
future perspectives are discussed, aiming at disseminating and facilitating LCA application.
Procedure of LCA
In this chapter, the overall framework (Figure 18) of LCA is described according to ISO 14040 and
14044 as well as to the draft documents of the currently implemented guidance books of the
International Reference Life Cycle Data System (ILCD) (see below). Key issues will be further
discussed and accompanied with examples of literature. These draft documents were superseded
by the release of the final ILCD Handbook in March 2010 (JRC-IES, 2010).
Goal and scope
The goal and scope of an LCA have to be defined very thoughtfully. As a goal the intended
application, the intended audience or the intended use of the results can be arranged (ISO 14040).
The scope includes the product system, the functions of the product system, the method and impact
categories, the functional unit, system boundaries and data quality requirements as well as the type
of critical review (ISO 14040).
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Figure 18. Overall framework of an LCA. ISO 14040.
A good knowledge of the intended product system and their functions is a main requirement to
perform an LCA. For this purpose it is helpful to create a process flow diagram. Methods and impact
categories taken for the LCA need to be chosen at this stage. The characterisation of methods and
impact categories are explained later in the section for life cycle impact assessment.
The functional unit is implemented to define what is being modelled (e.g. 1m² of solar panel, 1kg of
iron). All inputs and outputs of each process are relative to this functional unit. The functional unit
gives also the opportunity to catch the purpose of a product or a service (e.g. treating the
wastewater of 1 habitant during a year). For instance, it would be useless to compare 1 litre of paint
A with 1 litre of paint B. More important would be to compare the service provided by paints A and B
by covering 1 m² of wall during a year.
The reference flow is the flow expressing the functional unit. LCA is moreover dealing with an
iterative approach. All processes or phases of an LCA use results of other phases (ISO 14040).
System boundaries are set to cover all relevant life cycle stages, processes and flows. For example
raw material acquisition, main manufacturing and processing steps, transportation, production and
use of fuels, electricity and heat, use phase, disposal, recycling, manufacture, maintain and
decommission of capital equipment should be taken into consideration. Additional operations like
lighting and heating in manufacturing buildings may be included as well. It always needs to be
defined which steps are most relevant considering the environmental impacts. The cut-off criteria is
set, when a certain level of flows are excluded from the modelling. For example, if the cut-off
criterion is 90% of the overall environmental impact then the included flows shall make up at least
90% of the environmental impact (Hauschild et al., 2009a).
Data requirements include allocation procedures, intended assumptions or limitations and data
quality. Allocation procedures need to be set with multi-functional processes, where the input flows
can’t be allocated to the output flows. Several techniques are provided to solve this problem. ISO
14044 proposes allocation by physical properties (e.g. mass) or by economic value (e.g. market
value). Further allocation procedures can be found in Buxmann et al. (1998) and in Hauschild et al.
(2009a). According to the data quality reliability, consistency and representativeness should be
achieved. Data should be prepared transparently so that traceability is possible (ISO 14040).
A critical review is needed to verify the intended LCA. The type of review often depends on the
intended audience and the costs. A critical review is particularly necessary when the LCA is used
for communication purposes. Sometimes reviews from external experts are needed and sometimes
reviews from internal staff are adequate. The ISO normally does not provide classification on which
reviewer is taken with a certain LCA. In the ILCD documents (Del Borghi et al., 2009) a draft is
provided where it is classified which LCA needs which review.
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The goal and scope definition is important to outline the LCA. It may be possible that goal and
scope are adjusted during the inventory analysis.
Inventory analysis
The life cycle inventory can be assessed by two main modelling frameworks: attributional and
consequential modelling. Attributional modelling means to assess potential environmental impacts
that can be attributed to a given, existing product system over its life cycle, i.e. upstream along the
supply-chain and downstream following the products use and end of life (Hauschild et al., 2009a).
Consequential modelling aims at identifying the consequences that a decision in the foreground
system has for any other processes and product systems of the economy. It models the to-beanalysed
product system around these consequences (Hauschild et al., 2009a). The big difference
of the two modelling systems is that attributional modelling models the product system as it is
whereas the consequential modelling considers how decisions affect other processes or products.
For example by modelling the use of biofuel with consequential modelling the consequences on the
market of crops or on the land-use are included whereas with attributional modelling the system is
considered as it is.
The inventory analysis comprises data collection, data calculation and allocation. Data collection
needs to be performed through the whole life cycle. Figure 19 shows a supply-chain life cycle model
of a product consisting of processes linked with inputs and outputs with attributional modelling.
Primary or secondary data can be generated for each input and output flow. Primary data is difficult
to obtain and very resource-intensive. An additional fact is that data from industry need to be
treated confidentially. This is often a reason why data from industry is unavailable. Secondary data
can be collected by questionnaires or with literature sources (JRC, 2009).
Furthermore it has to be declared, if specific or generic/average data are used. As a general rule
the main process step should be modelled with specific data (Hauschild et al., 2009a). Specific data
means data from the represented process. Background processes can be represented by average
or generic data (e.g. electricity mix). Average data is used, if the technology standard applies for a
whole region/country/continent and a mix of that is advantageous. However, data can only be
averaged if the same methodology, limitations and allocations are used (Hauschild et al., 2009d). If
the modelled technology is very different from the standard, then specific data would be useful. The
same applies for very relevant processes (Hauschild et al., 2009a).
Figure 19. Supply-chain life cycle model of a product (attributional modelling). Hauschild et al.,
2009a.
For the calculation of data it has to be considered that all values are related to the reference flow
and the functional unit respectively. If for example the input is 1kg of iron, the amount of heat has to
be calculated to melt iron ore so that 1kg of iron can be produced. The calculation procedure should
be the same within the inventory analysis. Some processes have more than one function and yield
more than one product. The values cannot be allocated to certain flows (multi-functional processes).
In this case certain procedures need to be adopted, as mentioned above. The first step is to avoid
allocation to a certain extent. Processes need to be sub-divided as much as possible so that data
can be assigned to certain flows. Data should therefore be collected exclusively for sub-processes
that only have one functional output if possible. If sub-division is not possible then substitution can
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e implemented. Substitution or also crediting means that non-required functions are replaced by
an alternative. For example for producing electricity in a combined heat and power plant, the cofunction
is heat. Heat can be replaced by an alternative process and therefore eliminated
(Hauschild et al., 2009a).
The last step is allocation. In ISO 14044, allocation procedures are divided into allocation by
physical properties (e.g. mass) or by economic value (e.g. market value). In general, all calculation
steps and allocation procedures have to be documented and consistent. Good documentation is a
requirement to edit an LCA in a transparent and traceable way. When using allocation, the sum of
the inventories which were allocated need to be equal to the inventory before making the allocation.
Impact assessment
Life Cycle Impact Assessment (LCIA) is provided by various categories. These categories show
environmental potentials in different areas: human health, natural environment and natural
resources. Impact categories can be calculated by impact indicators with a certain inventory (Table
10).
Table 10. Impact categories and their characterisations. Hauschild et al., 2009c, Fleischer and
Riebe, 2002.
Impact category Impact indicators End point Inventory
Climate change e.g. Global Warming Increase of the global Emissions of green
Potential GWP
average temperature house gases
Ozone depletion e.g. Ozone Depletion Impact on human health Emissions of
Potential ODP
e.g. skin cancer due to chlorofluorocarbons
expansion of ozone hole (CFC) and halons
Human toxicity e.g. Quality Adjusted Life Impact on the human Emissions of toxic
Years QALY, Disability
Adjusted Life Years DALY,
Human Toxicity Potential
HTP
health
substances
Respiratory e.g. Total Suspended
inorganics/ Particulates, TSP, PM10,
particulate matter PM2,5
Ionizing radiation Impact on human health Emissions of
and ecosystems radioactive
substances
Photochemical e.g. Photochemical Ozone Impact on the human Emissions of VOC
ozone formation Creation Potential POCP, health e.g. asthma and volatile organic
(smog)
Maximum Incremental
Reactivity MIR
natural environment compounds and NOX
Acidification e.g. Acidification Potential Impact on vegetation and Emissions of acids
AP
loss of aquatic
biodiversity
(NH3, NOX, SO2, …)
Eutrophication Terrestrial and aquatic Impact on vegetation and Emissions of
eutrophication
loss of aquatic life due to nutrients like
the lack of O2
phosphor and
nitrogen
Ecotoxicity Terrestrial and aquatic, Impact on natural Environmental
e.g. Potentially
environment (chemical’s persistence and
Disappeared Fraction of fate, species exposure, ecotoxicity of
species PDF, Probability of
Occurrence POO, Mean
Extinction Time (MET)
toxicological response) chemicals
Land use e.g. Land transformation, Impact on ecosystems Physical changes to
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Resource
depletion
land occupation due to effects of
occupation and
e.g. Shortage of mineral
resources
130
transformation of land
Decrease of resources,
so that future generation
will suffer
soil surface, to soil
and to flora and
fauna
Input of nonrenewable
energy
(coal, oil, bauxite,…)
To calculate environmental burdens elementary flows are classified, characterised and
implemented with a factor. This classification and characterisation can only be done by experts,
who then provide complete sets of LCIA methods. Further details on the methods can be found in
the ILCD background document “Framework and requirements for Life Cycle Impact Assessment
(LCIA) models and indicators”. LCIA results can also be normalised, if the value needs to be related
to e.g. an average citizen. Weighting factors can also be implemented to point out certain
relevance. They can be used to combine some impact categories to one overall indicator (e.g. Eco-
Indicator 99).
The choice of indicators depends on the product or process which is modelled. The indicator sets
are presented by different methods (e.g. CML 2002) and are related to time and region (e.g. GWP
100 global).
In dealing with LCA, various methodologies on environmental impact assessments are available. A
short summary of some methodologies is provided in Table 11. For further details, refer to the ILCD
background document “Analysis of existing Environmental Impact assessment methodologies for
use in Life Cycle Assessment (LCA)” (Hauschild et al., 2009b).
Methodologies can be midpoint (MP) or endpoint (EP) related or a combination of both. Midpoint
related impact categories are defined as a place where a common mechanism for a variety of
substances within that specific impact category exists. Examples are climate change or cancer
effects. Endpoint, also called damage-related, are methodologies which focus on indicators related
to areas of protection of human health, natural environment and natural resources in general
(Hauschild et al., 2009b). For instance, climate change is quantified at MP by providing a CO2
equivalent of the GHG emissions. This gives an idea of the magnitude of the environmental
pressure. At EP the consequence (sea rise, loss of species etc.) of these emissions and the
damage (response) is evaluated.
Most of the methods are developed for European conditions. For some categories such as climate
change, ozone layer depletion or resources global considerations are included. Some methods exist
which can be used outside of Europe (see Table 11).
Interpretation
Interpretation, the last step of an LCA, is one of the most important stages. By interpreting the
results of the LCIA the outcome becomes understandable for decision makers and interested
parties. The interpretation must contain (ISO 14040):
• Identification of significant issues;
• Evaluation; and
• Conclusions, limitations and recommendations.
To identify significant issues, firstly the LCIA results need to be analysed and then the overall LCA
(Hauschild et al., 2009a). Explanations for intended assumptions, allocations, cut-off decisions and
selection of impact categories and indicators need to be provided. For evaluating the final results
three checks are necessary:
• Completeness check;
• Sensitivity check; and
• Consistency check.

The outcome should be consistent with the goal and scope of the LCA. Therefore the conclusions,
limitations and recommendations shall be drawn in accordance with the goal definition and the
intended application of the results (Hauschild et al., 2009a).
Table 11. Environmental impact assessment methodologies. Summarised from Hauschild et al.,
2009b.
Method Developer MP EP Description
CML 2002 CML (NL)
One of the first methods and frequently used;
x separate normalisation factors for each indicator,
in total 19 impact categories.
Eco-indicator Pré (NL)
Three perspectives: Hierarchist, Individualist and
99
x
Egalitarian. One fully integrated approach which
covers all impact categories resulting in damage
to human health, ecosystems and resources.
EDIP97 and DTU (DK)
Classic emission-related impact categories as
EDIP2003
x
well as resources and working environment.
Normalisation and weighting is based on political
environmental targets.
EPS2000 IVL (SE)
x
Expression in monetary units derived on the
Willingness To Pay (WTP) principle.
Impact 2002+ EPFL (CH)
14 midpoint categories are linked to four damage
x x
categories (human health, ecosystem quality,
climate change, resources). Normalisation either
at midpoint or at damage level.
LIME AIST (JP)
Expression in monetary units. One single index
x x based on the midpoint to the endpoint. Weighting
is based on environmental conditions of Japan.
LUCAS CIRAIG (CAN)
x
Related to Canadian context based on TRACI
and Impact 2002+.
ReCiPe RUN + Pré +
CML + RIVM (NL)
x x
Follow up of Eco-indicator 99 and CML 2002. It
harmonises midpoint and endpoint approaches.
Swiss E2 + ESU-
Weighting is based on public policy targets and
Ecoscarcity
07
services (CH)
x x
objectives. Originally developed for Swiss
conditions, but already adapted to other
European countries.
TRACI US EPA (USA)
x
Related to conditions in the USA and in line with
the EPA policy.
MEEuP VhK (NL)
Evaluation of various energy-using products
x
(EuP) and their extent of fulfilling certain criteria
for implementing measures under the Ecodesign
of EuP Directive 2005/32/EC.
Databases and tools
A full scale LCA is randomly carried out. It is very complex as well as time consuming and therefore
costly, and therefore small and medium companies cannot afford it. For this reason various
methodologies to facilitate the inventory analysis have been introduced, such as the streamlined
LCA (Todd and Curran, 1999) or the approximate LCA (Park et al., 2001). The streamlined LCA is
based on a simplified procedure of an inventory analysis and narrows the goal and scope definition
process (Todd and Curran, 1999). Approximate LCA bundles products into groups of similar
environmental and product characteristics and simplifies impact assessment methodology.
Environmental Impact Drivers (EIDs) are defined from existing LCA studies and correlated to
product attributes. New product attributes may be added by the designer. The combination of those
data results in a predicting LCA of the new product design (Park et al., 2001).
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Life cycle inventory data can be available in databases without additional functionalities or softwaretools,
which include own and other LCI data. Examples for databases are Ecoinvent 2.1 from the
Swiss Centre for Life Cycle Inventories (http://www.ecoinvent.org/) and the European Reference
Life Cycle Data System ELCD from the JRC. Ecoinvent 2.1 is useable in various software tools
such as GaBi and SimaPro. It contains around 2.800 data sets. The licence is linked with costs. An
update of the data sets is carried out in one to two year intervals.
ELCD contains 300 data sets [end of 2009], which will be expanded in the near future when the
ILCD documents are finalised (see section on “new data” below). Data sets are available free of
charge and can be downloaded at http://lca.jrc.ec.europa.eu/lcainfohub/datasetArea.vm.
Various software-tools exist that are focused on special purposes, e.g. for full-scale LCAs,
screening methods or simplified LCAs. Table 12 shall give an overview of some common software
tools inclusive databases. The choice depends on the following issues:
• Purpose (LCI, LCIA, LCC, LCWE, …);
• Acquisition costs;
• Number of data sets in the database;
• Types of data sets in the database;
• Data quality of data sets in the database; and
• Possibility of implementation in other tools.
The various databases have different numbers of data sets. Some contain more than a thousand
data sets, some only a few hundred. The latter are only suitable as a screening method. For full
scale LCA more data sets are necessary. However, a high number of data sets in databases does
not necessarily mean good data quality. Data quality may be defined by the following specifications:
• Location;
• Reference year;
• Data source;
• Data preparation (estimated, deviated, averaged);
• Data completeness;
• Type of review;
• Method of collection;
• Allocation of parameters; and
• Available documentation.
According to the ILCD documents (Hauschild et al., 2009a) further data quality criteria need to be
considered:
• Technological representativeness;
• Geographical representativeness; and
• Time-related representativeness.
Databases like Ecoinvent, ELCD and GaBi-prof contain detailed meta data according to the above
mentioned data quality specifications. Ecoinvent’s data sets are also well documented in special
handbooks with information of sources. Databases in e.g. GaBi, SimaPro and GEMIS lack detailed
documentation.
Name/ Owner/
Version Developer
Boustead Boustead
Model 5.0 Consulting (GB)
ECO-it PRé Consultants
(NL)
Table 12. Selected LCA software tools (in alphabetical order).
Link Description
http://www.boustea
d-consulting.co.uk/
http://www.pre.nl/ec
o-it/default.htm
132
Suitable tool for full scale LCA; around
13,000 datasets; high acquisition costs.
Tool for screening datasets; acquisition
costs.

GaBi 4 PE international
(DE) [Note: a
ZeroWIN partner]
GEMIS 4.5 Ökoinstitut + UBA
Berlin (DE)
http://www.gabisoftware.com/
http://www.oeko.de/
service/gemis/
Green-E Ecointesys (CH) http://www.greene.ch/
IDEMAT TU Delft (NL) http://www.idemat.n
l/
REGIS 2.3 sinum AG (CH) www.sinum.com/ht
docs/d_software_re
gis.shtml
SimaPro 7 Pré consultants http://www.pre.nl/si
(NL)
mapro/default.htm
TEAM TM
4.0
Umberto
4.1
Ecobilan –
Pricewaterhouse
Coopers (FR)
PRé Consultants
(NL) + Ifu
Hamburg (DE)
http://www.ecobilan
.com/uk_lcatool.ph
p
http://www.umberto
.de/en/
133
Suitable tool for full scale LCA;
expandable with special database; in
total 638 data sets; licence with costs;
useable with Ecoinvent database; LCC
and LCWE compatible.
Suitable tool for full scale LCA, around
6,100 datasets; for non-commercial use
free of charge otherwise with costs.
LCC and LCWE compatible.
Tool for screening, licence with costs.
Acquisition costs; LCC compatible.
Suitable tool for full scale LCA; more
than 5,000 data sets; licence with costs
depending on used database; useable
with Ecoinvent database; LCWE and
LCC compatible.
Tool for screening datasets; around 300
data modules; single licence with costs;
LCC compatible.
Suitable tool for full scale LCA;
expandable with special database;
around 1,200 data modules; licence
with high costs; LCC compatible.
Further LCA related tools can be found on the Europa website on LCA tools, services and data:
http://lca.jrc.ec.europa.eu/lcainfohub/toolList.vm; and on the EcoSMEs-site on LCA software tools:
http://exelca2.bologna.enea.it/cm/navContents?l=EN&navID=lcaSmesStandardReg&subNavID=3&pagID=1
&flag=1.
Practice
It was shown above that sophisticated methods, databases and tools are available now. This
section attempts to answer the pragmatic question of how they are used in industrial practice and
which benefits of its use are documented.
LCA use in industry is mostly focused on product LCA, while LCA of waste management plays a
subordinate role. Both data availability and interest for industrial stakeholder usually lies on
upstream processes. Differences of LCA tools on waste management systems are briefly
introduced in the Chapter “LCA in waste management”.
LCA in industry: motivation and use of product LCA
Despite numerous attempts to facilitate LCA, industry has been relatively slow to adopt it. Only a
few studies have been carried out to identify the rationale of companies for using LCA as well as the
distribution of LCA (Rex and Baumann, 2008). They provide valuable answers to the question why
or why not to use LCA and for which concrete objectives in different industrial settings. Data for
these studies are collected by questionnaires to industry representatives.
Concerning the distribution of LCA, studies conclude that industry practice varies with company
characteristics. Frankl and Rubik (2000) concluded that use of LCA varies with company size and

the country in which the company operates. Big companies such as Unilever and BMW tend to
have a special department for LCA modelling. A differentiated view is presented by Berkhout and
Howes (1997) who conclude that LCA adoption and use was determined by the stage of product life
cycle and the nature of competition. Producers of final products tend to use LCA for developmental
applications, thus assuming that improvements are possible for the product system and are likely to
increase competitiveness on the market. Upstream commodity producers (e.g. aluminium, plastics)
tend to use life cycle approaches defensively against environmental claims and to try to influence
policy makers.
Table 13 shows more details about LCA adoption and use in three branches, i.e. building materials,
automotive and electronic goods. All three branches occupy an intermediate position in the product
chain. Differences exist concerning key drivers for adoption, method of adoption through
hierarchies, orientation to external public, data availability and costs. It is significant that the building
sector uses LCA to increase competitive advantage over rivals. Energy-saving, thus cost reducing,
innovations are seen as relevant product criterion which might be the reason for market-orientated
motivation.
Table 13. Approaches to LCA adoption by European firms. Digested from Berkhout and Howes,
1997.
Characteristics of
LCA adoption
Building materials Automotive Electronic goods
Key driver
Regulatory or
market?
Market competition Regulation Regulation
Bottom-up/top-down
adoption
Top-down Bottom-up Bottom-up
Internally/externally
orientated
External Internal Internal
Data availability Variable Good for simple
components / poor for
complex components
Poor
Costs Variable High High
LCA in waste management
In its pioneering phase, LCA was developed for environmental assessment of products. Both life
cycle boundaries and system definition are fundamentally different for life cycle assessments
applied in waste management. The life cycle of a waste system starts after discarding a material
and ends when the material is recycled or has become a part of the ecosphere (Bhander et al.,
2010). Product LCA tools are therefore not appropriate for modelling such systems. The technical
requirements for the application are higher due to the complexity of waste. Prominent tools for the
assessment of waste management systems are e.g. EASEWASTE (Denmark), LCA-IWM (EU),
IWM2 (UK), ORWARE (Sweden) and WISARD (UK). See more details in Bhander et al. (2010).
Case Studies
Several LCA case studies exist in the photovoltaic, construction, automotive and electrical sectors.
However, there are major differences between the intended products. The inventory analysis in the
construction industry looks different than for e.g. the automotive industry. While construction
materials only have a few up-stream processes, photovoltaic panels or electronic devices of
automobiles are composed of a large number of materials and up-stream processes. Due to the
high complexity and the number of different components the modelling of the electronic parts as
well as of their disposal is difficult. In addition, use patterns of devices are changing very fast. New
features, new applications and new lifestyles are the reasons. The time frame for electronics is very
short, as innovation procedures are fast and modelling is therefore difficult as reliable statistical data
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is lacking. However, Unger et al. (2008) considers LCA as suitable for electronics, as processes can
be screened to identify environmental hotspots.
Construction materials are highlighted when looking at the generated amounts. Due to the high
volumes of construction and demolition waste policy makers are forced to find solutions in the
environmental point of view. LCA is a useful method in this regard. Automotive issues are on the
contrary often regulated by directives. Therefore different end of life options are usually evaluated
by means of LCA. Photovoltaic is a comparably new industry with fast changing technologies.
Future scenarios need to be evaluated with LCA.
The following case studies shall provide some insight into previous LCA studies in these sectors.
Case Study 1: Personal Computer
Comparing two eco-design computers (Stachura and Schiffleitner, 2006)
KERP modelled the environmental performance of an eco-design computer XPC and a new Eco-
PC from MicroPro named IAMECO. IAMECO distinguishes with better recycling performance. The
computers were compared by simplified LCA. The outcomes of the study showed that the
production and usage phases have the highest environmental impacts for both computers. As
IAMECO is larger than the XPC the differences in environmental impacts in the extraction and
production phase of both computers are not significant. Focusing on a longer usage time as it can
be achieved by upgrading IAMECO, the ecological performance can be improved in all life cycle
phases.
Environmental performance indicators for personal computers (IKP, 2006)
Within the scope of the European Commission's proposal for a framework directive for setting ecodesign
requirements for energy-using products (EuP), mechanisms for rapid, efficient and
participatory decision-making are required. Mechanisms to address decision-makers in product
design as well as in politics are environmental performance indicators.
Against this background, the project consortium of EPIC-ICT (www.epic-ict.org ) has developed a
method to define environmental performance indicators for ICT products on the example of PCs.
These indicators relate to easily definable technical product properties, e.g. clock rates, power
demand etc. Based on Life Cycle Assessment (LCA), relevant environmental indicators have been
defined to support and enhance eco-design requirements for the respective decision-makers. The
method combines scientific soundness, public acceptance and practical applicability at the same
time.
Case Study 2: Photovoltaic
Electricity generation by means of photovoltaic panels (Stoppato, 2008)
Photovoltaic panels contain energy intensive processing steps. Stoppato (2008) identified the
energy pay-back time (EPBT) and the potential for CO2 mitigation of photovoltaic panels with the
following considerations:
• The most critical phases are the transformation of metallic silicon into solar silicon, because
of the high energy demand and the panel assembling, because of energy-intensive materials
like aluminium and glass; and
• Different geographic collocations of the photovoltaic plant with different values of solar
radiation, latitude, altitude and national energetic mix for electricity production were
considered.
135

The outcome of the study is that the EPBT is shorter than the panel operation life even in the worst
geographic conditions. The results of the LCA therefore support the issue of the environmental
friendliness of photovoltaic panels.
Costs, market penetration and environmental performance of photovoltaic systems (Raugei
and Frankl, 2009)
Three alternative future scenarios are evaluated from the view of costs, market penetration and
environmental performance. The considerations of layer thickness, efficiency, composition and
lifetime have been made for future PV systems both in 2025 and 2050.
I: Pessimistic scenario: little to no market penetration, no third generation devices;
II: Optimistic/realistic scenario: growth of the PV market, 2025 shift to third generation devices,
slight growth until 2050;
III: Very optimistic scenario: growth of the PV market until it becomes the largest contributor of the
renewable energy technologies.
With the help of LCA a sound environmental policy could have been identified. The results of the
LCA showed that technological advancements in current and emerging PV technologies lead to
lower environmental impacts than the current state of the art.
Life Cycle Assessment (LCA) of energy technologies (FP6 project NEEDS; http://www.needsproject.org/)
Three scenarios are developed for a LCA of energy technologies: The pessimistic, the optimistic
(i.e. realistic) and the very optimistic scenario. Two time horizons are created for each scenario,
2025 and 2050. The assessment is carried out with consideration of further developments of
production techniques in terms of energy and raw material efficiency, energy carriers used and
emission factors. Among the energy technologies photovoltaic systems were assessed.
The LCA of photovoltaic systems is mainly influenced by the electrical performance of the systems,
the use of materials and energy in the manufacturing of photovoltaic modules and in the
construction of the Balance of System. Future scenarios were orientated on strong improvements of
current technologies and also on the development of new devices, which are currently at a
laboratory scale. As a data source the ecoinvent database, the EU-project ECLIPSE (2003), an US
power plant and outcomes of the project CRYSTALCLEAR were consulted.
The results of the LCA contributed to a database created within this project with the aim to evaluate
the full costs and benefits (i.e. direct + external) of energy policies and of future energy systems,
both at the level of individual countries and for the enlarged EU as a whole.
Case Study 3: Re-use Networks
Network of product chains (Hanssen et al., 2007)
The environmental effectiveness of the Norwegian beverage sector has been studied. One purpose
of the project was to test the potential for using LCA methodology on an economic sector with a
network of product chains. An important aspect of the study has been to evaluate how
environmental efficiency and effectiveness can be increased significantly within the whole sector.
The results of the study show that, for environmental impacts, raw material production is the most
important part of the life cycle of beverage products.
Environmental impact assessment of different design schemes of an industrial ecosystem
(Singh et al., 2006)
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In an industrial ecosystem, a group of industries are inter-connected through mass and energy
exchanges for mutual benefits. Some mass and energy exchange activities may cause unexpected
environmental impacts. Therefore the impacts of the symbiosis have to be evaluated.
The agro-chemical complex in the Lower Mississippi River Corridor has thirteen chemical and
petrochemical industries. An LCA-type environmental impact assessment of different design
schemes for this complex is conducted in the paper using the software TRACI, a tool developed by
the United States Environmental Protection Agency (USEPA).
The authors conclude that LCA is a very useful and powerful tool to analyse and compare different
designs for an industrial ecosystem by providing deep insight about various impacts caused by the
production schemes.
Case Study 4: Construction
Mineral waste re-use scenarios (Benetto et al., 2007)
Mineral waste recycling is rarely regulated or standardised. LCA is a useful method of evaluating
environmental performance of different recycling scenarios and comparing them (Benetto et al.,
2007). An approach was developed to combine LCA with Environmental Risk Assessment (ERA).
Three examples were evaluated:
I: MSWI residues in road construction (layer of MSWI is 25 cm, length of the road 10 m);
II: construction and demolition waste in road construction; and
III: MSWI residues in road construction (layer of MSWI is 40 cm, length of the road 7 m).
Different considerations were accounted for road soil types, meteorological conditions, road
conditions and groundwater movement. This study shows that LCA can also be used in combination
with ERA to receive useful decision support.
VAMP demolition-valorization system in comparison with traditional systems (Sára et al.,
s.a.)
The aim of the VAMP (Valorization of building demolition Materials and Products, LIFE
98/ENV/IT/33) project was to help decision makers with selecting an appropriate demolition activity
and with managing the recycling of waste flows of the construction and demolition sector (Sára et
al., s.a.). It was necessary to support the decision making system of VAMP with quantitative
verification and demonstration of environmental advantages. The VAMP demolition-valorization
system (a combination of re-use and recycling) was therefore compared with a traditional system by
means of LCA.
The LCA quantified the environmental advantages of the VAMP system. Because of the
enhancement of re-use techniques huge amounts of solid waste in landfill were avoided and the
extraction of natural resources was decreased. Furthermore a reduction of energy consumption
because of reusing clay bricks as a whole could have been achieved.
LCA of a residential building in Turin (IT) (Blengini, 2009)
The amount of building waste materials is increasing. Policy makers need to be supported with
decisions of what to do with these materials. An Italian research programme therefore analysed the
end of life phase of a residential building in Turin by means of LCA. As the building was demolished
in 2004 by controlled blasting, actual data was available.
The results of the LCA showed that the recycling of building waste is economically feasible,
profitable and sustainable from the energetic and environmental point of view. The most beneficial
environmental aspect is the avoided amount sent to landfill. The recycling potential of building
137

materials was found to be 29% and 18% in terms of life cycle energy and greenhouse emissions
respectively.
Case Study 5: Automotive
Material design of passenger cars (KERP, 2009)
A car manufacturer MAGNA STEYR and a research institute KERP (centre of excellence,
electronics & environment) developed in cooperation a tool for product design in the automotive
industry (former called ProdTect). In partnership with the software partner i-point, the tool was
integrated in the Compliance Agent-Tool. It is available at http://www.prodtect.com/. The
Compliance Agent consists of two modules: RRR (Reusability, Recyclability, Recoverability) and
LCA. The first module facilitates the calculation of RRR quotas by simulating material flows. The
latter module is a decision support tool for designers. It helps to evaluate environmental
performance of different material compositions as well as different methods of processing and
manufacturing. User-defined data can be added as parameters.
Due to the high amount of materials and devices of automobiles a full scale LCA was not possible.
A streamlined LCA was therefore implemented.
Electrical and electronic components in the automotive sector (Alonso et al., 2007)
The SEES project (Sustainable Electrical & Electronic System for the Automotive Sector)
contributes to a development of cost- and eco-efficient electrical and electronic systems. The
project is funded by the European Commission in the sixth framework programme. For this purpose
case studies for LCA and for Life Cycle Costing (LCC) have been developed:
Design alternatives for engine wire harness (WH) and passenger smart junction boxes (PSJB):
• Design II1, WH: reduced copper content by flat flexible cable;
• Design II2, WH: use of hook and loop tapes an alternative type of joining to the car;
• Design II1, PSJB: use of lead-free solder alloys; and
• Design II2, PSJB: potentially easy to dismantle fasteners of the housing of the PSJB.
End of life (EOL) scenarios:
• EOL1: Disassembly of the WH/PSJB and advanced mechanical and chemical recycling; and
• EOL2: Car shredder and advanced post-shredder recycling.
The LCA results of the different scenarios showed that the environmental impacts are strongly
influenced by the material production and the use phase. Changes in the EOL phase show only
slight influence on the environmental performance. Better environmental performance is achieved
for flat flexible cables. The lead-free solder alloys showed a slight increase in some environmental
impact categories. The results of the LCA are a basis for developing Eco-design guidelines for a
later phase of the SEES project.
Case Study discussion
The given case studies show that LCA is often used as decision support for designers or policy
makers. LCA can also be combined with economic assessments. For example, the SEES project
showed that with LCA and LCC an optimum design and optimum end of life scenarios can be
defined (Alonso et al., 2007). Also future scenarios, as in the case of future photovoltaic
technologies (Raugei and Frankl, 2009 and project NEEDS), can be modelled with LCA. Different
design options are modelled in (Alonso et al., 2007; Kerp, n.a.) and different processing options in
(Sára et al., s.a., Benetto et al., 2007, Kerp, s.a.). Quantification of the environmental performance
of these different scenarios makes comparisons and therefore conclusions possible. LCA is a
comprehensive method to show environmental performance.
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Benefits
The benefits of LCA use can hardly be assessed quantitatively. Measuring success or
competitiveness of a company in general is a complicated task. Considering that a lot of decisions
are simultaneously implemented in a company, of which few may be based on LCA studies, it is too
complex to attribute measurable changes of, say, technical or environmental performance. Thus it is
understandable that no such study could be found in the scientific literature. However, qualitative
hints of the role of LCA within the framework of decision support are available.
Berkhout and Howes (1997) analysed the impact of LCA application on innovation and
competitiveness by comparing branch-specific case studies. It was found that commodity producers
can expect only a little new knowledge from LCA use. These branches are research- and capitalintensive
and tightly regulated to protect health. Other process-based tools have been traditionally
used in managing change and innovation of established processes. Thus the optimisation potential
is limited as the knowledge level is already high. Producers of final products, however, can expect
significant advantages from LCA, as no similar tools have usually been used before. Product
innovation is fundamental to competitiveness, thus seen as significant for decision support. LCA
has stimulated innovation of a number of simple goods (e.g. packaging), while it is used as a
screening tool for complex products (e.g. automobiles).
Advantages and disadvantages of LCA in general are summarised in Table 14.
Table 14. Advantages and disadvantages of LCA. Tingström and Karlsson, 2006.
Advantages Disadvantages
Reveals material- and energy-flows
upstream and downstream that could have
been unseen by other methods.
Gives decision support for new, effective
ways to fulfil human needs and wants with
less total environmental impact.
It can serve as a basis for making
checklists/guidelines for use in Design for
Environment efforts.
LCA can be used as a basis for learning and
dialogue about the relative importance of
different environmental aspects.
The result is based on a transparent system
analysis and objective measures.
It is possible to communicate the results
outside the company.
It is possible to compare the environmental
performance for different forms of solutions.
Perspectives
139
To perform an LCA on a new
product/process is costly and difficult.
Data are often missing or have low quality
and therefore many LCA activities must be
based on short series of measures,
theoretical calculations and estimations.
To make a complete LCA there is a
substantial need for data and specialist
knowledge.
No impact assessment weighting method is
generally accepted.
The time aspect makes it difficult to use LCA
in a product development process.
There is a lack of comparable and reliable
LCA data.
It is often difficult to define the product
system boundaries in a consistent way.
This section shows new developments and perspectives in the field of LCA that aim to facilitate LCA
application and to assess relevant impacts in terms of costs and social aspects. Standardisation of
LCA and new data are explained and further assessment technologies are briefly described. The
method of life cycle costing and of social life cycle assessment can be used as additional
assessments to environmental assessment. They are seen as additional methods for decision
makers and are therefore mentioned in the context of environmental assessment of LCA.
Standardisation

A standardisation of methodologies and procedures can facilitate the modelling of LCA to a high
extent. As methodologies and procedures for e.g. collecting data, setting system boundaries etc.
are standardised, the rather complex inventory analysis is easier to carry out. Various actors of e.g.
industries are therefore able to prepare LCAs in a more efficient and cost effective way. Another
advantage of standardisation is that LCA results are therefore better comparable and LCI data can
be duplicated for other LCA. Using existing LCI data facilitates the modelling enormously.
A standardisation of the methodology is provided by the ISO 14040 series. Instructions going
beyond the ISO have now been provided by the European Commission’s Joint Research Centre
(JRC) with the International Reference Life Cycle Data System (ILCD) Handbook (JRC-IES, 2010).
The ILCD consists of a set of different guidance documents/handbooks and a data network. The
ILCD combines the wide approach of the ISO with narrower instructions to enable a consistent and
quality-assured LCA (Figure 20; JRC, 2009). ILCD attempts to reflect common and global practice
and solutions on an international level and not only on an European level. ILCD is seen to be
advantageous for interactions between LCA providers and policy. It will build a standard reference
on global level and supports comparability of LCA studies (JRC, 2009).
Figure 20. Scope of the ILCD documents. JRC, 2009.
The FP6 CALCAS project Coordination Action for innovation in Life Cycle Analysis for Sustainability
(http://www.calcasproject.net/) reviewed the basic current paradigms of LCA in order to overcome
its present limits. Within the project an analysis of present and perspective needs of different users
(policy makers, business, citizens, R&D programmers) was carried out and assessment tools and
their scientific basis have been critically reviewed. Guidelines for applications of LCA have also
been established.
New data
Within the ILCD network either new data will be provided or existing data will be adapted. The
network will comprise data from industry, business associations, governmental bodies, consultants,
national LCI projects, research institutes and the European Reference Life Cycle Data System
(ELCD). The ELCD provides Life Cycle Inventory data representing the European market and
includes key materials, energy carriers, transport and waste management. In July 2009 300 LCI
data sets were uploaded to the European Platform on Life Cycle Assessment (EPLCA) website
(http://lca.jrc.ec.europa.eu/lcainfohub/datasetArea.vm) and are available free of charge. These data
sets are in line with ISO 14040 and 14044, but not with the ILCD handbooks as they were still under
construction at that time. Once the instructions in the handbooks are harmonised and ready, the
ELCD data system will be adapted. All ILCD network members have to fulfil the instructions
according to the handbooks to feed data into the network. As soon as the handbooks are available,
data can be uploaded or existing data can be adapted.
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Life cycle costing
Life cycle costing is an assessment of all costs associated with the life cycle of a product that are
directly covered by one or more of the actors in the product life cycle (supplier, producer,
user/consumer, EOL-actor), with complimentary inclusion of externalities that are anticipated to be
internalised in the decision-relevant future (Rebitzer and Hunkeler, 2003). It is seen as an essential
link for connecting environmental concerns with core business strategies (Hunkeler and Rebitzer,
2003). Businesses are encouraged to incorporate good environmental performance to
manufacturing and sales planning. However, the methodology of LCC differs from the methodology
of LCA. The differences are listed in Table 15.
Table 15. Methodological differences of LCA and LCC. Norris, 2001.
Aspect LCA LCC
Purpose Compare relative environmental
performance of alternative product
systems for meeting the same
end-use function, from a broad,
Activities which are
considered part of
the ‘Life Cycle’
societal perspective.
All processes causally connected
to the physical life cycle of the
product; including the entire preusage
supply chain; use and the
processes supplying use; end of
life and the processes supplying
end of life steps.
Flows considered Pollutants, resources, and interprocess
flows of materials and
Units for tracking
flows
Time treatment and
scope
energy.
Primarily mass and energy;
occasionally volume, other
physical units.
Social life cycle assessment
The timing of processes and their
release or consumption flows is
traditionally ignored; impact
assessment may address a fixed
time window of impacts (e.g. 100year
time horizon for assessing
global warming potentials) but
future impacts are generally not
discounted.
141
Determine cost-effectiveness of
alternative investments and business
decisions, from the perspective of an
economic decision maker such as a
manufacturing firm or a consumer.
Activities causing direct costs or
benefits to the decision maker during
the economic life of the investment, as
a result of the investment.
Cost and benefit monetary flows
directly impacting decision makers.
Monetary units (e.g. dollars, euro).
Timing is critical. Present valuing
(discounting) of costs and benefits.
Specific time horizon scope is
adopted, and any costs or benefits
occurring outside that scope are
ignored.
Social life cycle assessment (SLCA) or social life cycle impact assessment (SLCIA) is another
method to contribute to the decision making based on LCA. SLCA analyses social impacts on
people caused by the activities in the life cycle of their product (Dreyer et al., 2006). Social aspects
need to be included in the evaluation of environmental performance of products and services.
Impact categories range from human rights, labour practices and decent work conditions to society
and product responsibility. Indicators can be for example child labour or forced labour, wages,
corruption and product labelling (Jørgensen et al., 2008). Jørgensen et al. (2008) presents a
number of indicators from various literature sources and characterises whether they are quantitative
or qualitative/descriptive. The study also provides midpoint and endpoint level indicators. It gives a
good overview of the existing approaches of SLCA. Furthermore the UNEP/SETAC Life Cycle
Initiative evaluated activities on Social Life Cycle Assessment
(http://lcinitiative.unep.fr/default.asp?site=lcinit&page_id=A8992620-AAAD-4B81-9BAC-

A72AEA281CB9). The initiative aims to facilitate the incorporation into management of not only
environmental and economical aspects of sustainability but also of social aspects of different
industry sectors.
Discussion
LCA is a necessary method for evaluating the targets of the ZeroWIN project. Only with LCA can
environmental related targets such as cutting greenhouse gases and fresh water use be measured.
The methodology of LCA is convertible to a high extent as a standard method exists. The standard
methodology can be used in industrial networks. LCA has already been used successfully in
industry. Social and cost related targets can be evaluated by the life cycle approach as well.
The potential for environmental benefits in industrial networks by using LCA is without controversy.
Improvements in environmental performance of products, services and processes can be achieved.
Economic benefits also arise, as environmental benefits are achievable with e.g. cutting down
energy use or minimising waste for disposal. In each case costs can be saved and more efficient
production is reached. LCA can also play a major role in social impacts. Benefits for society occur
when products or processes are evaluated by means of SLCA. Issues related to the working
environment and to the whole society can be assessed and improved.
Technical and operational feasibility in industrial networks can be achieved by using standard
methods of LCA. The ILCD documents will provide further guidelines on e.g. collecting data,
allocation procedures or setting system boundaries. In the handbooks case studies will make
practicability clear.
Furthermore LCA is compatible with EU policy. The European Commission has introduced various
initiatives to strengthen life-cycle thinking in policy and business. Activities such as the Green Paper
on Integrated Product Policy (IPP) and the landmark communication on IPP, have the objective of
launching a debate on improving environmental performance of products, services or systems
throughout their life-cycles. Life cycle thinking is furthermore strengthened in the Commission’s
thematic strategies programmed by the sixth environment action programme on the sustainable use
of natural resources and on the prevention and recycling of waste. The sustainable consumption
and production (SCP) strategy was also launched by publication of an Action Plan. With the EU
waste-related policies, the European Commission wants to highlight the importance of waste
minimisation, the protection of the environment and human health (Del Borghi et al., 2009).
LCA is for various reasons suitable for the purpose of ZeroWIN. The method encapsulates
environmental related issues, as well as economic and social aspects, in a life cycle approach, and
will be a key tool for measuring the achievements in the project using standard methods and given
sustainability indicators.
Glossary
Definitions are taken from ISO 14040 as this will be used as a standard for the ZeroWIN project.
Additional definitions, which are taken from other sources but are also essential, are marked with *.
The source is provided in the definition text in these instances.
Allocation Partitioning the input or output flows of a process or a
product system between the product system under study
and one or more other product systems.
Attributional modelling* Attributional modelling means to assess potential
environmental impacts that can be attributed to a given,
existing product system over its life cycle, i.e. upstream
along the supply-chain and downstream following the
products use and end of life (Hauschild et al., 2009a).
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Completeness check Process of verifying whether information from the phases of
a life cycle assessment is sufficient for reaching conclusions
in accordance with the goal and scope definition.
Consequential modelling* Consequential modelling aims at identifying the
consequences that a decision in the foreground system has
for any other processes and product systems of the
economy. It models the to-be-analysed product system
around these consequences (Hauschild et al., 2009a).
Consistency check Process of verifying that the assumptions, methods and data
are consistently applied throughout the study and are in
accordance with the goal and scope definition performed
before conclusions are reached.
Co-product Any of two or more products coming from the same unit
process or product system.
Critical review Process intended to ensure consistency between a life cycle
assessment and the principles and requirements of the
International Standards on life cycle assessment.
Cut-off criteria Specification of the amount of material or energy flow or the
level of environmental significance associated with unit
processes or product system to be excluded from a study.
Elementary flow Material or energy entering the system being studied that
has been drawn from the environment without previous
human transformation, or material or energy leaving the
system being studied that is released into the environment
without subsequent human transformation.
Energy flow Input to or output from a unit process or product system,
quantified in energy units.
Environmental aspect Element of an organisation’s activities, products or services
that can interact with the environment.
Functional unit Quantified performance of a product system for use as a
reference unit.
Impact category Class representing environmental issues of concern to which
life cycle inventory analysis results may be assigned.
Impact category indicator Quantifiable representation of an impact category.
Input Product, material or energy flow that enters a unit process.
Interested party Individual or group concerned with or affected by the
environmental performance of a product system, or by the
results of the life cycle assessment.
Life cycle Consecutive and interlinked stages of a product system,
from raw material acquisition or generation from natural
Life Cycle Assessment
LCA
Life Cycle Costing*
LCC
Life Cycle Impact Assessment
LCIA
resources to final disposal.
Compilation and evaluation of the inputs, outputs and the
potential environmental impacts of a product system
throughout its life cycle.
An assessment of all costs associated with the life cycle of a
product that are directly covered by one or more of the
actors in the product life cycle (supplier, producer,
user/consumer, EOL-actor), with complimentary inclusion of
externalities that are anticipated to be internalised in the
decision-relevant future (Rebitzer and Hunkeler, 2003).
Phase of life cycle assessment aimed at understanding and
evaluating the magnitude and significance of the potential
environmental impacts for a product system throughout the
life cycle of the product.
Life cycle interpretation Phase of life cycle assessment in which the findings of either
the inventory analysis or the impact assessment, or both, are
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evaluated in relation to the defined goal and scope in order
to reach conclusions and recommendations.
Life Cycle Inventory (LCI) Phase of life cycle assessment involving the compilation and
Analysis
quantification of inputs and outputs for a product throughout
its life cycle.
Output Product, material or energy flow that leaves a unit process.
Process Set of interrelated or interacting activities that transforms
inputs into outputs.
Product Any goods or services.
Raw material Primary or secondary material that is used to produce a
product.
Reference flow Measure of the outputs from processes in a given product
system required to fulfil the function expressed by the
functional unit.
Sensitivity analysis Systematic procedures for estimating the effects of the
choices made regarding methods and data on the outcome
of a study.
Sensitivity check Process of verifying that the information obtained from a
sensitivity analysis is relevant for reaching the conclusions
and for giving recommendations.
Social Life Cycle Assessment* Assessment of social impacts on people caused by the
SLCA
activities in the life cycle of the product (Dreyer et al., 2006).
System boundary Set of criteria specifying which unit processes are part of a
product system.
Transparency Open, comprehensive and understandable presentation of
information.
Uncertainty analysis Systematic procedure to quantify the uncertainty introduced
in the results of a life cycle inventory analysis due to the
cumulative effects of model imprecision, input uncertainty
and data variability.
Unit process Smallest element considered in the life cycle inventory
analysis for which input and output data are quantified.
Waste Substances or objects which the holder intends or is
required to dispose of.
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2.3.2 Carbon footprinting
• What is a carbon footprint?
The carbon footprint is a measure of the global warming potential of greenhouse gases emissions
caused directly or indirectly by an individual, organisation, event or product. Applied to a product, it
is more specifically a quantification of the total amount of GHG produced over the period of a
products life, thus providing the ‘climate impact’ of a product or service.
What are relevant definitions?
Greenhouse gases (Kyoto Protocol, Annex A): The major greenhouse gases (GHGs) are: carbon
dioxide (CO2), methane (CH4), and nitrous oxide (N2O). These gases occur naturally, but human
activities such as travel, energy consumption, and agriculture increase the amount of these gases
in the atmosphere. Other greenhouse gases that do not occur naturally, but are generated by
industrial processes, are hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur
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hexafluoride (SF6).
Global Warming Potential (GWP): The impact of greenhouse gas emissions upon the atmosphere
is related not only to radiative properties, but also to the time-scale characterising the removal of
the substance from the atmosphere. Radiative properties control the absorption of radiation per
kilogram of gas present at any instant, but the lifetime (or adjustment time) controls how long an
emitted kilogram is retained in the atmosphere and hence is able to influence the thermal budget.
The climate system responds to changes in the thermal budget on time-scales ranging from the
order of months to millennia depending upon processes within the atmosphere, ocean, cryosphere,
etc. GWPs are a measure of the relative radiative effect of a given substance compared to another,
integrated over a chosen time horizon. The reference gas is usually CO2 (IPCC, Third Assessment
Report).
Different definitions of Carbon Footprint (cited in Wiedmann, 2007)
BP (2007): "The carbon footprint is the amount of carbon dioxide emitted due to your daily activities
– from washing a load of laundry to driving a carload of kids to school."
British Sky Broadcasting (Sky) (Patel, 2006): The carbon footprint was calculated by "measuring the
CO2 equivalent emissions from its premises, company-owned vehicles, business travel and waste to
landfill."
Carbon Trust (2007) : "… a methodology to estimate the total emission of greenhouse gases in
carbon equivalents from a product across its life cycle from the production of raw material used in
its manufacture, to disposal of the finished product (excluding in-use emissions).”
Energetics (2007): "… the full extent of direct and indirect CO2 emissions caused by your business
activities."
ETAP (2007): "…the ‘Carbon Footprint’ is a measure of the impact human activities have on the
environment in terms of the amount of greenhouse gases produced, measured in tonnes of carbon
dioxide."
Global Footprint Network (2007): "The demand on biocapacity required to sequester (through
photosynthesis) the carbon dioxide (CO2) emissions from fossil fuel combustion."
Grub & Ellis (2007): "A carbon footprint is a measure of the amount of carbon dioxide emitted
through the combustion of fossil fuels. In the case of a business organisation, it is the amount of
CO2 emitted either directly or indirectly as a result of its everyday operations. It also might reflect
the fossil energy represented in a product or commodity reaching market."
Parliamentary Office of Science and Technology (POST, 2006) "A ‘carbon footprint’ is the total
amount of CO2 and other greenhouse gases, emitted over the full life cycle of a process or product.
It is expressed as grams of CO2 equivalent per kilowatt hour of generation (g CO2 eq/kWh), which
accounts for the different global warming effects of other greenhouse gases."
What are the key concepts?
Life Cycle Assessment (LCA; see section 2.3.1)
Life Cycle Assessment is an analytical technique for assessing the environmental effects
associated with a product, process, or activity. This technique is based on a functional unit
accounting system and use a multi-criteria perspective.
The LCA quantifies the environmental impacts of a product, during the extraction of the raw
materials which compose it, its manufacture, distribution, usage and elimination (analysis “from
cradle to grave”). The streams of material and energy inputs and outputs in every stage of the life
cycle are inventoried, so as to make an exhaustive balance assessment of the consumptions of
energy, natural resources and emissions in the environment (air, water and ground). In particular,
GWP is an impact category that plays a major role in LCA.
147

All direct (on-site, internal) and indirect (off-site, external, upstream, downstream) emissions need
to be taken into account. These balance assessments of stream inputs and outputs are called Life
Cycle Inventories.
Based on a LCA approach (carbon footprinting and LCA methodologies are very similar), the full
carbon footprint of an organisation encompasses a wide range of emissions sources from direct use
of fuels to indirect impacts such as employee travel or emissions from other organisations up and
down the supply chain. When calculating an organisation’s footprint it is important to try to quantify
as full a range of emissions sources as possible in order to provide a complete picture of the
organisation’s impact. In order to produce a reliable footprint, it is important to follow a structured
process and to classify all the possible sources of emissions thoroughly. A common classification is
to group and report on emissions by the level of control which an organisation has over them. On
this basis, greenhouse gas emissions can be classified into three main types (Carbon Trust, 2006):
Scope 1: Direct emissions that result from activities the organisation controls
Most commonly, direct emissions will result from combustion of fuels which produce CO2
emissions, for example the gas used to provide hot water for the workspace. In addition, some
organisations will directly emit other greenhouse gases. For example, the manufacture of some
chemicals produces methane (CH4) and the use of fertiliser leads to nitrous oxide (N2O) emissions.
Waste management, through incineration (e.g. CO2 from fossil materials) or landfill (e.g. CH4 from
decomposition of fermentable material) or other waste management options, is also a source of
GHGs.
Scope 2: Emissions from the use of electricity
Workplaces generally use electricity for lighting and equipment. Electricity generation comes from a
range of sources, including nuclear and renewables. However, in the UK around 75% is produced
through the combustion of fossil fuels. Although the organisation is not directly in control of the
emissions, by purchasing the electricity it is indirectly responsible for the release of CO2.
Scope 3: Indirect emissions from products and services
Each product or service that is purchased by an organisation is responsible for emissions. So the
way the organisation uses products and services affects its carbon footprint. For example, a
company that manufactures a product is indirectly responsible for the carbon that is emitted in the
preparation and transport of the raw materials. Downstream emissions from the use and disposal of
products can also be indirectly attributed to the organisation.
What definition should ZeroWIN adopt for use in industrial networks and why?
In the specific context of organisations, The Carbon Trust (2006) defines a carbon footprint as “the
total amount of greenhouse gas emissions for which an organisation is responsible.” This definition
encompasses direct and indirect emissions, as previously defined. Therefore, it goes beyond a
simple greenhouse gas inventory confined to the organisation boundaries, and looks into the whole
supply chain and the product’s life cycle. GHG Protocol’s ongoing work on product and supply chain
accounting and reporting is particularly relevant. When it comes to waste management, recycling
and waste reduction, scope 3 emissions are particularly important to account for, as emissions
related to industrial waste management or to a product’s end of life are indirect emissions. Note that
the definition ZeroWIN should adopt includes all greenhouse gases in the carbon footprint, and not
only carbon dioxide.
• Who uses it in industrial networks?
As climate change is a major and growing environmental concern, many organisations in the private
and in the public sector have calculated their carbon footprint.
As stressed by the World Resource Institute in the GHG Protocol Corporate Accounting and
Reporting Standard, greenhouse gas inventories can serve various business goals (World
Resource Institute, 2004):
Managing GHG risks and identifying reduction opportunities
• Identifying risks associated with GHG constraints in the future;
• Identifying cost effective reduction opportunities; and
148

• Setting GHG targets, measuring and reporting progress.
Public reporting and participation in voluntary GHG programmes
• Voluntary stakeholder reporting of GHG emissions and progress towards GHG targets;
• Reporting to government and NGO programmes, including GHG registries; and
• Eco-labelling (see section 2.2.7) and GHG certification.
Participating in mandatory reporting programmes
• Participating in government reporting programmes at the national, regional, or local level.
Participating in GHG markets
• Supporting internal GHG trading programmes;
• Participating in external cap and trade allowance trading programmes; and
• Calculating carbon/GHG taxes.
Recognition for early voluntary action
• Providing supporting information.
Although carbon footprinting is widely implemented in different industrial sectors, specific
contributions to industrial networks have not been identified at this point.
Which industrial sectors?
All industrial sectors are responsible for GHG emissions, and climate change is a major public and
political concern. This results in the use of carbon footprinting in virtually all industrial sectors.
Those of special interest to ZeroWIN (automotive, construction and high-tech) are particularly
relevant as they are important contributors to greenhouse gas emissions (EICTA, 2008, USEPA,
2009).
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding
Legislation / Policy measure Relevance to
industrial
The Kyoto Protocol is the first legally binding international agreement aimed
at slowing, and eventually stopping, global warming. It is an international plan
of action to reduce greenhouse gas emissions. One hundred and seventeen
countries have signed it. Countries that ratify the Protocol agree to cut back
their greenhouse gas emissions to predetermined levels over the period
2008-2012 (the first commitment period). They can do this by directly
reducing the emissions they produce, buying carbon credits from other
countries, or offsetting the emissions they cannot reduce, for example, by
planting new forests or increasing areas of scrubland vegetation to increase
the amount of carbon dioxide taken from the atmosphere
(http://unfccc.int/kyoto_protocol/items/2830.php). The United Nations Climate
Change Conference held in Copenhagen in December 2009 resulted in the
Copenhagen Accord. The conference fell short of its main objective to
formalise an ambitious climate change agreement for the period from 2012,
when the first commitment under Kyoto Protocol will expire. The UN
Framework Convention on Climate Change will continue to drive and
coordinate efforts to combat climate change and its impacts at the global
level.
The European Union Emission Trading System (EU ETS) is the largest multinational,
emissions trading scheme in the world, and is a major pillar of EU
climate policy. Under the EU ETS, large emitters of carbon dioxide within the
EU must monitor and annually report their CO2 emissions, and they are
obliged every year to return an amount of emission allowances to the
149
networks
Indirect impact
on industrial
networks.
Direct impact on
industrial
networks,
through obliged
industrial plants.

government that is equivalent to their CO2 emissions in that year.
The Carbon Reduction Commitment (CRC) is a proposed mandatory cap and
trade scheme in the United Kingdom that will apply to large non energyintensive
organisations in the public and private sectors. The Carbon
Reduction Commitment was announced in the 2007 Energy White Paper. A
consultation in 2006 showed strong support for it to be mandatory, rather
than voluntary. The Commitment is to be introduced under enabling powers
planned for inclusion in the Climate Change Bill.
A carbon tax is an environmental tax on emissions of carbon dioxide and
other greenhouse gases. The EU is considering creating this tax for all
products that are imported or exported.
• What are its advantages? • What are its disadvantages?
Use of a common measurement unit: all the
measures are reported in carbon equivalent, or
carbon dioxide equivalent, which simplifies the
analysis, to make it effective and
understandable for everybody. Comparisons
with identical perimeters can be realised.
Wide range of application: methods and
standards have been developed to assess the
carbon footprint of an organisation.
Extremely comprehensive literature databases:
greenhouse gas emissions related to human
activities have been subject to active research in
recent decades, and comprehensive databases
exist for several sectors. In particular, many
studies report greenhouse gas emissions from
waste management activities.
150
Direct impact on
large nonenergy
intensive
organisations in
the UK.
Direct impact on
greenhouse gas
emitting
industries.
The first limit of the method is the uncertainty of
the capacity to collect quality data, which can
cause certain estimations. Thus important
precautions concerning the data collection are to
be taken into account.
A number of ‘calculators’ have been developed,
however different protocols and methodologies
use different measurement, emissions factors,
etc., leading to a disparity between carbon
footprints using different models.
Carbon footprinting is an evaluation which
concerns a unique environmental criterion: the
impact of greenhouse gas emissions on climate
change.
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
Although there are numerous examples of carbon footprinting of products, services, or
organisations, it has not been possible to find direct and explicit applications of this method to
industrial networks. However, the wide range of application of the method (see key documents
below) shows that its application to industrial networks should only be a matter of clearly defining
the scope and the boundaries.
USEPA (2009) gives a good example of characterising emissions from the construction sector and
identifying sources of reduction. As discussed in EICTA (2008), the high-tech sector plays an
important role in greenhouse gases reduction, as it’s manufacturing processes and products are
energy intensive; the report also stresses that information technologies allow other sectors to save
energy (providing solutions for optimising energy, doing things differently and developing low
carbon businesses).
• What are the key documents that discuss and report on it?
Topic Reference
Greenhouse
gas emissions
and climate
Intergovernmental Panel on Climate Change (IPCC), 2007. Climate change
2007 synthesis report summary for policymakers. [Online]. Available at:
http://www.ipcc.ch/pdf/assessment-report/ar4/syr/ar4_syr_spm.pdf [Last

change accessed 2 September 2009]
Carbon footprint
methods and
standards
Carbon footprint
and waste
management
Wiedmann, T. and Minx, J., 2007. A definition of “Carbon Footprint”. [Online].
Available at: http://www.censa.org.uk/docs/ISA-UK_Report_07-
01_carbon_footprint.pdf [Last accessed 19 September 2009]
Andrews, S., 2008. A Classification of Carbon Footprint Methods used by
Companies. [Online]. Available at:
http://ctl.mit.edu/public/Andrews_Thesis%202009.pdf [Last accessed 2
September 2009]
World Resource Institute, 2004. The Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard. [Online]. Available at:
http://www.ghgprotocol.org/files/ghg-protocol-revised.pdf [Last accessed 2
September 2009]
World Resource Institute, 2007. The GHG Protocol for Project Accounting.
[Online]. Available at: http://www.ghgprotocol.org/files/ghg_project_protocol.pdf
[Last accessed 2 September 2009]
The Carbon Trust, 2008. Code of Good Practice for Product
Greenhouse Gas Emissions and Reduction Claims. [Online]. Available at:
http://www.carbontrust.co.uk/publications/publicationdetail.htm?productid=CTC7
45 [Last accessed 2 September 2009]
The Carbon Trust, 2007. Carbon Footprinting, an introduction for organisations.
[Online]. Available at:
http://www.carbontrust.co.uk/publications/publicationdetail?productid=CTV033
[Last accessed 2 September 2009]
The Carbon Trust, 2006. Carbon footprint in the supply chain: the next step for
business. [Online]. Available at:
http://www.carbontrust.co.uk/publications/publicationdetail.htm?productid=ctc61
6 [Last accessed 2 September 2009]
British Standards Institute, 2008. PAS 2050:2008, Specification for the
assessment of the life cycle greenhouse gas emissions of goods and services.
[Online]. Available at: http://www.bsigroup.com/en/Standards-and-
Publications/Industry-Sectors/Energy/PAS-2050/PAS-2050-Form-page/ [Last
accessed 2 September 2009]
British Standards Institute (BSI), 2008. Guide to PAS 2050, How to assess the
carbon footprint of goods and services. [Online]. Available at:
http://www.bsigroup.com/en/Standards-and-Publications/Industry-
Sectors/Energy/PAS-2050/PAS-2050-Form-page/ [Last accessed 2 September
2009]
International Organisation for Standardisation 2006, ISO 14064: greenhouse gas
accounting and verification. [Online]. Available at: http://store.payloadz.com/strasp-i.105501-n.ISO_14064-1_Green_House_Gases_Standard_eBooks_-end-
detail.html [Last accessed 2 September 2009]
Waste and Resources Action Plan (WRAP), 2008. A lighter Carbon Footprint,
the next steps to resource efficiency. [Online] Available at:
http://www.wrap.org.uk/downloads/WRAPPlan2008_111.94f9a1d5.5481.pdf
[Last accessed 2 September 2009]
AEA Technology, 2001. Waste management options and climate change.
[Online] Available at:
http://ec.europa.eu/environment/waste/studies/pdf/climate_change.pdf [Last
accessed 2 September 2009]
USEPA, 2006. Solid Waste Management and Greenhouse gases. [Online].
Available at:
http://www.epa.gov/climatechange/wycd/waste/downloads/fullreport.pdf [Last
accessed 2 September 2009]
Intergovernmental Panel on Climate Change (IPCC), 2006. Guidelines for
National Greenhouse Gas Inventories, Vol. 5 Waste. [Online]. Available at :
http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol5.html [Last accessed 2
151

September 2009]
ERM, 2006. Impact of Energy from Waste and Recycling Policy on UK
Greenhouse Gas Emissions. [Online] Available at:
http://randd.defra.gov.uk/Document.aspx?Document=WR0609_5737_FRP.pdf
[Last accessed 2 September 2009]
High tech sector EICTA, 2008. High Tech: Low Carbon, The role of the European digital
technology industry in tackling climate change. [Online]. Available at:
www.eicta.org/web/news/telecharger.php?iddoc=762 [Last accessed 2
Construction
Sector
• Discussion
September 2009]
USEPA, 2009. Potential for Reducing Greenhouse Gas Emissions in the
Construction Sector. [Online]. Available at:
http://www.epa.gov/sectors/pdf/construction-sector-report.pdf [Last accessed 2
September 2009]
Is this topic/concept one for use in ZeroWIN?
The reduction of greenhouse gas emissions by 30% is one of the main objectives to be achieved by
the ZeroWIN project. Carbon footprinting is potentially a very useful tool for ZeroWIN to monitor and
report achievements in greenhouse gas reduction.
Is it unproven e.g. not enough data?
No. As mentioned above, one of the advantages of carbon footprinting is the comprehensiveness of
existing studies and databases.
Is it unlikely to be successful based upon previous experience?
No, as long as boundaries are clearly defined to fit ZeroWIN’s objectives.
2.3.3 Environmental Impact Assessment
• What is Environmental Impact Assessment (EIA)?
EIA is a procedure that must be followed for certain types of development before they are granted
development consent. The requirement for EIA comes from a European Directive (85/33/EEC as
amended by 97/11/EC). The procedure requires the developer to compile an Environmental
Statement (ES) describing the likely significant effects of the development on the environment and
proposed mitigation measures. The ES must be circulated to statutory consultation bodies and
made available to the public for comment. Its contents, together with any comments, must be taken
into account by the competent authority (e.g. local planning authority) before it may grant consent.
The process involves an analysis of the likely effects on the environment, recording those effects in
a report, undertaking a public consultation exercise on the report, taking into account the comments
and the report when making the final decision and informing the public about that decision
afterwards.
In principle, environmental assessment can be undertaken for individual projects such as a dam,
motorway, airport or factory ('Environmental Impact Assessment') or for plans, programmes and
policies ('Strategic Environmental Assessment').
The particular components, stages and activities of an EIA process and the application of the main
stages is a basic standard of good practice. Typically, the EIA process begins with screening to
ensure time and resources are directed at the proposals that matter environmentally and ends with
some form of follow-up on the implementation of the decisions and actions taken as a result of an
EIA report (Figure 21).
152

Figure 21. General EIA process flowchart. UNEP, 2002.
What are the key concepts?
The EIA Directive (EU legislation) on Environmental Impact Assessment of the effects of projects
on the environment was introduced in 1985 and was amended in 1997. The directive was amended
again in 2003, following EU signature of the 1998 Aarhus Convention. In 2001, the issue was
enlarged to the assessment of plans and programmes by the so called Strategic Environmental
Assessment (SEA) Directive (2001/42/EC), which is now in force. The EIA Directive outlines which
project categories shall be made subject to an EIA, which procedure shall be followed and the
content of the assessment.
The EIA procedure ensures that environmental consequences of projects are identified and
assessed before authorisation is given. The public can give its opinion and all results are taken into
account in the authorisation procedure of the project. The public is informed of the decision
afterwards.
There are 8 guiding principles that govern the process of EIA, as follows (IAIA, 1999):
• Participation: an appropriate and timely access to the process for all interested parties;
• Transparency: all assessment decisions and their basis should be open and accessible;
• Certainty: the process and timing of the assessment should be agreed in advanced and
followed by all participants;
• Accountability: the decision-makers are responsible to all parties for their action and
decisions under the assessment process;
• Credibility: assessment is undertaken with professionalism and objectivity;
153

• Cost-effectiveness: the assessment process and its outcomes will ensure environmental
protection at the least cost to society;
• Flexibility: the assessment process should be able to adapt to deal efficiently with any
proposal and decision making situation; and
• Practicality: the information and outputs provided by the assessment process are readily
usable in decision making and planning.
EIA is considered as a project management tool for collecting and analysing information on the
environmental effects of a project. As such, it is used to:
• Identify potential environmental impacts;
• Examine the significance of environmental implications;
• Assess whether impacts can be mitigated;
• Recommend preventive and corrective mitigating measures;
• Inform decision makers and concerned parties about the environmental implications; and
• Advise whether development should go ahead.
What definition should ZeroWIN adopt for use in industrial networks and why?
The environmental impact assessment is the process of identifying, predicting, evaluating and
establishing recommendations of appropriate mitigating measures for the environmental
consequences of development proposals prior to major decisions being taken and commitments
made (IAIA, 1999).
• Who uses it in industrial networks?
All industrial projects can use an EIA as a management tool to know their impacts on the
environment. More specifically, EU legislation makes it mandatory to make an EIA for the following
projects (with a few exceptions): crude-oil refineries, thermal power stations, storage facilities for
radioactive waste, asbestos treatment facilities, integrated chemicals installations, motorways,
railways and airports, trading ports, waste disposal installation (incineration, chemical treatment, or
landfill of toxic and dangerous waste), and a number of industrial facilities in agriculture, the
extractive industry, energy, metals, glass, chemicals, food, leather and textiles and rubber sectors,
as well as large infrastructure projects.
Which industrial sectors?
All industrial sectors are concerned with the environmental impact assessment, including the
automotive, construction, electronics and photovoltaics sectors.
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding
Legislation / Policy measure
European Commission EIA Directive
The EIA procedure ensures that environmental consequences of projects are identified and
assessed before authorisation is given. The public can give its opinion and all results are taken
into account in the authorisation procedure of the project. The public is informed of the decision
afterwards.
The EIA Directive outlines which project categories shall be made subject to an EIA, which
procedure shall be followed and the required content of the assessment.
• What are its advantages? • What are its disadvantages?
• Provides systematic methods of impact
assessment
• Estimates the cost/benefit trade-off of
alternative actions
154
• Time-consuming
• Costly
• Little public participation in actual
implementation

• Facilitates public participation
• Provides an effective mechanism for
coordination, environmental integration,
negotiations and feedback
• Top-level decision-making
• Achieves a balance between the impact of
developmental and environmental concern
155
• Unavailability of reliable data (mostly in
developing countries)
• Compliance monitoring after EIA is seldom
carried out
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
No application to industrial networks has been identified.
• How successful has it been in industrial networks?
This method has been successful for many companies, but not yet applied to industrial networks.
• What are the key documents that discuss and report on it?
Topic Reference
General
documentation
EIA Directive –
regulation,
guidance and
studies
Application to
industrial
networks
Sadler, B., 1996. Environmental Assessment in a Changing World: Evaluating
Practice to Improve Performance, Final Report of the International Study of the
Effectiveness of Environmental Assessment. Ottawa, Canada. [Online]
Available at: http://www.iaia.org/publicdocuments/EIA/EAE/EAE_10E.PDF [Last
accessed 3 September 2009]
UNEP, 2002. Environmental Impact Assessment Training Resource Manual,
Second Edition. [Online]. Available at:
http://www.unep.ch/etu/publications/EIAMan_2edition_toc.htm [Last accessed 3
September 2009]
IAIA (International Association for Impact Assessment), 1999. Principles of
Environmental Impact Assessment Best Practices. [Online]. Available at:
http://www.iaia.org/publicdocuments/specialpublications/Principles%20of%20IA_web.pdf
[Last accessed 21 September
2009]
COWI, 2009. Study concerning the report on the application and effectiveness
of the EIA Directive. [Online]. Available at:
http://ec.europa.eu/environment/eia/pdf/eia_study_june_09.pdf [Last accessed 3
September 2009]
European Commission, DG Environment, 2008. Interpretation of definitions of
certain project categories of annex I and II of the EIA Directive. [Online].
Available at: http://ec.europa.eu/environment/eia/pdf/interpretation_eia.pdf
[Last accessed on 3 September 2009]
European Commission, DG Environment, 2001. EIA Guidance – Screening.
[Online]. Available at: http://ec.europa.eu/environment/eia/eia-guidelines/gscreening-full-text.pdf
[Last accessed 3 September 2009]
European Commission, DG Environment, 2001. EIA Guidance – Scoping.
[Online]. Available at: http://ec.europa.eu/environment/eia/eia-guidelines/gscoping-full-text.pdf
[Last accessed 3 September 2009]
European Commission, DG Environment, 1999. Guidelines for the Assessment
of Indirect and Cumulative Impacts as well as Impact Interactions. [Online].
Available at: http://ec.europa.eu/environment/eia/eia-studies-and-
reports/guidel.pdf [Last accessed 3 September 2009]
Singh, A. et al., 2006. Environmental impact assessment of different design
schemes of an industrial ecosystem. Resources, Conservation and Recycling.
[Online] 51(2). Abstract from Science Direct database. Available at:

• Discussion
http://linkinghub.elsevier.com/retrieve/pii/S0921344906002424 [Last accessed 3
September 2009]
Is this topic/concept one for use in ZeroWIN?
Environmental Impact Assessment sets a methodological framework for assessing environmental
impacts of a project. Therefore, as a tool for measuring and monitoring environmental impacts of
ZeroWIN projects, it can be of use. Moreover, the mandatory aspect of EIA in some cases has to be
complied with.
Is it unproven e.g. not enough data?
No.
Is it unlikely to be successful based upon previous experience?
No.
2.3.4 Environmental Management System (EMS)
• What is an Environmental Management System?
EMS is a management system that plans, schedules, implements and monitors those activities
aimed at improving environmental performance. According to Tibor and Feldman (1996), underlying
this definition is the implicit assumption of a positive correlation between environmental and
corporate performance. A properly developed EMS is built on the "Plan, Do, Check, Act" model for
continual improvement.
What are relevant definitions?
EMS is “that part of the management system which includes organisational structure, planning
activities, responsibilities, practices, procedures, processes and resources for developing,
implementing, achieving, reviewing and maintaining the environmental policy” (Tibor and Feldman,
1996; Cascio, 1996).
An Environmental Management System (EMS) is a problem identification and problem solving tool
that provides organisations with a method to systematically manage their environmental activities,
products and services and helps to achieve their environmental obligations and performance goals.
What are the key concepts?
The basic elements of an effective environmental management system include:
1. Creating an environmental policy;
2. Setting objectives and targets;
3. Implementing a programme to achieve those objectives;
4. Monitoring and measuring its effectiveness;
5. Correcting problems; and
6. Reviewing the system to improve it and its overall environmental performance.
However, while the elements are somewhat common, it is the special information the system can
generate that serves to differentiate the EMS of one firm from that of another. Thus, many firms can
have an EMS, and each of these systems can be a unique resource, delivering specialised
information to individual firms (Soufre et al., 1998).
It is also possible to make a distinction between internally oriented and externally oriented EMSs
(Bremmers et al., 2004). A complete internally oriented EMS includes all of the elements of
Deming’s plan-do-check-act cycle: commitment (statement of goals by the management as well as
the assessment of a programme of activities), compliance (setting standards in accordance with
external norms), control (regular measurements of output, registration and auditing) and
communication (feedback of results, both internally and externally). The internally oriented EMS
focuses on process control, the reduction of environmental impacts and organisational redesign.
156

From a certain point in the organisational development process, however, improving a firm’s
environmental performance requires co-ordinated effort between exchange partners in a supply
chain (Shrivastava, 1995). A supply chain is a network of organisations that are involved through
upstream and downstream linkages in different processes and activities that produce value in the
form of products and services in the hands of the ultimate consumer (Christopher, 1992).
An externally oriented EMS would therefore require, among other things, an information system that
reaches beyond the boundaries of the individual organisation. This external orientation brings extra
benefits in the long run, financially as well as for the natural environment, because of shared
competencies and expertise, economies of scale, co-ordination of efforts, etc.
There are a number of standards available, around which we can model our Environmental
Management System, or EMS. The most widespread ones are ISO14001 on the international
scene, and EMAS, or the Eco-Management and Audit Scheme, at the European level (a
management tool for companies and other organisations to evaluate, report and improve their
environmental performance).
EMAS and ISO 14001 share the same objective: to provide good environmental management. In
1996 the European Commission recognised that ISO 14001 could become a stepping stone for
EMAS. In such a way, the adoption of ISO 14001 as the management system element of EMAS
allows an organisation to easily progress from ISO 14001 to EMAS without duplicating effort. EMAS
applies to all 27 Member States of the European Union, to the European Economic Area (Norway,
Iceland and Liechtenstein) and to the Candidate Countries for EU membership (Croatia, The
Former Yugoslav Republic of Macedonia and Turkey) (European Commission, 2008).
What definition should ZeroWIN adopt for use in industrial networks and why?
A management system that plans, schedules, implements and monitors those activities aimed at
improving environmental performance.
• Who uses it in industrial networks?
In general, at individual level, currently 57% of all companies have some kind of publicly available
environmental policy statement in place. According to UNESCO, a substantial proportion of
companies have implemented environmental management systems (58%), although only half of
these (29%) report their environmental performance (Ethical Investment Research Services (EIRIS),
2007).
The type of EMS selected by companies also varies. Internationally, ISO 14001 is the most
widespread system, and has shown a strong growth over the years. While in 1999 there were
14.106 certifications (Heras et al., 2008) worldwide, by the end of 2007 there were 154.572 (ISO,
2008).
The distribution of ISO 14001 certifications in 2007 can be divided as follows:
157
Europe 27
Other European
Countries
Africa / West Asia
Central and South
America
North America
Far East
Figure 22. Worldwide distribution of ISO 14001 certifications in 2007. Data extracted from ISO,
2008.

According to this data, in 2007 there were around 60.000 ISO 14001 certifications in EU27. In
comparison, in 2009 there were 4.308 organisations certified according to EMAS system (with 6.873
sites registered)(European Commission, 2009).
The different implementation of EMS across Europe is shown in the following figures:
Figure 23. ISO 14001 registered companies in EU27 (2007). Data extracted from ISO, 2008.
158

2000
1800
1600
1400
1200
1000
800
600
400
200
0
Austria
Belgium
Bulgaria
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
UK
Figure 24. EMAS registrations in EU 27 in 2009: number of sites registered number of
companies registered. Data extracted from European Commission, 2009.
An environmental management system (EMS) implemented in industry at individual level may help
address environmental impacts while also improving the socio-economic performance. The
performance of individual companies in relation to sustainable development can be further
enhanced by analysing opportunities for network solutions to environmental and socio-economic
problems. This issue can be dealt with using EMS, but it is not implicit in its definition.
In a similar way, EMS can be developed for the Management Body of a consortium of industrial
networking organisations (e.g. an eco-industrial park), but the networking activities and how they will
be achieved can only be defined through specific strategies (Petersen, 2003), they are not implicit in
the EMS. Besides, authors have identified different approaches to implementation of EMS in an
industrial park: on a company-by-company basis, on a park infrastructure basis, on a
comprehensive basis (inter-organisational EMS), etc.
EMS application in industrial networks (comprehensive approach) becomes closely related to the
concepts of industrial ecosystems and industrial symbiosis and translates into the definition of
shared environmental targets and actions planning for the several stakeholders in the eco-industrial
network, as well as the integration of resources to achieve a better environmental performance of
the global system.
According to Lowe (2001):
‘One should see ISO 14001 or any other EMS structure as the container into which you place
eco-industrial objectives and strategies.’
Recently, several projects and pilot initiatives have tackled the issue of EMS implementation in
industrial networking. In Europe, several EU funded projects have explored applicability of EMAS to
industrial networking. For instance, LIFE03 ENV/IT/000421 project “Paper Industry Operating in
Network: an Experiment for EMAS Revision - PIONEER” in an industrial area of the province of
Lucca (IT); LIFE04 ENV/IT/000526 project “Sustainable EMAS North Milan – SENOMI”; ESEMPLA
and EMAS projects for the cooperative management of existing industrial networks (under the
159

Regional Framework Operation (RFO) ECOSIND stemming from the INTERREG III C programme).
As revised by Lowe (2001) and Chiu (2001), in Asia, several eco-industrial network initiatives have
implemented EMS’s in the industrial estates as part of the collective activities planned, such as:
PRIME Project (Philippines), Naroda Industrial Estate (India), Kokubo eco-industrial park (Japan).
Which industrial sectors?
EMS can be applied in any industrial sector and in the case of industrial networking in an industrial
mix. Looking at larger sector groups (industry, services and construction), there has been a clear
increase of ISO 14001 certifications in the services, while industry has lowered the rate, both in
Europe and Japan. In USA the trend is just the opposite.
Regarding the sectorial distribution of EMAS-registered companies, the dominance of waste
collection, treatment and disposal activities (including material recovery) is clear, counting for
8.10%. The degree of implementation in other sectors relevant for the project is shown in Table 16:
Table 16. Percentage of relevance of key ZeroWIN sectors among EMAS certified sites in
September 2009. Source: EMAS.
NACE 1 % OF EMAS
CODES
COMPANIES
Electricity, gas, steam and air
conditioning supply Electricity, gas,
steam and air conditioning supply 4.50
Manufacture of computer, electronic
and optical products 1.09
Electrical equipment: 1.60
Architectural and engineering
activities; technical testing and
analysis 2.21
Construction of buildings 1.12
Civil engineering 0.91
Manufacture of motor vehicles, trailers
and semi-trailers 2.63
1
NACE Codes are the European standard used to
identify organisations according to their business
activities.
Figure 25 shows a general view of the sectorial distribution in EMAS accreditation.
160

Manufacture of wood / wood products
(except furniture)
161
Manufacture of machinery
and equipment n.e.c.
Electricity, gas, steam and air
conditioning supply
Figure 25. Sectorial distribution of EMAS sites (by NACE codes) in September 2009 (note that
many sites may be registered for several NACE codes). Source: EMAS.
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
EMS is used as a governance tool of eco-industrial networks, for setting common environmental
goals and monitoring performance of the designed synergistic improvement actions of the industrial
cluster/area in business and regional planning:
• The eco-industrial networking planners benefit from the management utilities offered by EMS
to define a strategic programme of integrated management of residues and waste water, byproducts
and energy exchange, resources and services sharing, etc. and to measure and
jointly report the environmental results; and
• The EMS implemented in a regional industrial cluster can develop as a territorial policy for
local sustainability, integrated with other EU policies (Agenda 21, IPP, Resources Strategy,
etc.).
The application of EMS in individual companies is often used as an indicator of environmental
awareness of the companies in order to define industrial networking initiatives. At the same time,
the existence of an EMS in the companies guarantees the registration of a minimum degree of
environmentally relevant data, which could be a good support for developing and measuring
industrial networking activities.
The emergence of EMS can be traced to two major factors. The first involves the development of
environmental standards. The second is drawn from the lessons learned by studying how firms in
the past have responded to risk due to environmental problems (Sroufe et al., 1998).
Legally binding
Legislation / Policy measure Relevance to Comment

DIRECTIVE 2008/98/EC OF THE
EUROPEAN PARLIAMENT AND
OF THE COUNCIL of 19 November
2008 on waste and repealing
certain Directives*.
industrial networks
Medium According to this directive, Member
States are required to establish
waste prevention programmes and
to set out the waste prevention
objective. They also have to
evaluate the usefulness of waste
prevention measures, mentioned in
the directive as Environmental
Management Systems*.
Therefore, the promotion of EMS is
expected to be encouraged by this
Directive, since it is identified as an
effective waste prevention measure.
*It is acknowledged that the directive stops short of making the use of EMS a mandatory step.
Non-legally binding
Policy measure Relevance to
industrial networks
Regulation (EC) No 761/2001 of
the European Parliament and of the
Council of 19 March 2001 allowing
voluntary participation by
organisations in a community ecomanagement
and audit scheme
(EMAS).
Commission Regulation (EC) No
196/2006 on the recognition of ISO
14001:2004.
Commission Recommendation
(EC) No 2003/532/EC of 10 July
2003 gives guidance in the
selection and use of environmental
performance indicators in EMAS.
Standard indicators enable
benchmarking among organisations
attributed to the same sector.
Commission Proposal COM(2008)
402/2 for a Regulation of the
European Parliament and of the
Council on the voluntary
participation by organisations in a
community eco-management and
audit scheme (EMAS).
162
Comment
e.g. on method and effectiveness of
implementation and scope to extend
Medium In general, EMS can be considered
as an adequate support for better
managing sustainability oriented
industrial networking activities, but it
is not a key issue itself for their
development.
The existing formal EMS (and
certified according to ISO 14001,
EMAS) are individual organisationoriented
(either private or public)
and have evolved from voluntary
instruments designed for the
industry.
The proposals for a revision of
EMAS (COM(2008) 402/2) include
a cluster approach and aims at
incorporating main elements of the
existing non-binding EMAS
guidelines in the Regulation.
What are its advantages? What are its disadvantages?
The potential benefits depend on the scope and
application:
• Quality environmental management due to
the possibility of using highly developed
schemes (ISO 14001, EMAS);
• Contribution to environmental risk
management of the organisation;
• Literature references show certain
inconsistencies while setting an empirical
relation between the establishment of an
EMS and the environmental improvement.
Most authors find that firms report
improvements in a variety of environmental

• Resource savings and lower costs according
to the organisation's needs;
• Reduction of financial burdens due to
reactive management strategies such as
remediation, cleanups and paying penalties
for breach of legislation;
• Financial benefits through better control of
operations;
• Incentive to eco-innovate production
processes while environmental impacts are
rising world-wide;
• Improved quality of workplaces, employee
morale and incentive to team building.
When the EMS is verified and certified, other
benefits for the company can also be reported:
• Commitment to comply with regulatory
requirements;
• Added credibility and confidence with public
authorities, other businesses and customers/
citizens;
• Improved relations with the local community;
• New business opportunities in markets
where green production processes are
important;
• Marketplace advantage and improved
company image by improving stakeholder
relations.
When EMS’s are jointly applied in industrial
networking, individual companies can benefit
from shared communication and managerial
resources, reducing individual administrative
burden.
163
indicators (waste reduction, resource
conservation, energy use, lower emissions,
and recycling). A report from the University
of North Carolina at Chapel Hill (2003)
compiles several references in this sense
(Berry and Rondinelli, 2000; Mohammed,
2000; Rondinelli and Vastag, 2000; Florida
and Davison, 2001 and Russo, 2001).
However, others like Matthews (2001) have
found no differences in toxic waste
management where seen between firms
certified to the standard and those without
certification compliance with air permits was
similar between certified and non-certified
facilities. The same kind of results are
reported by the study conducted for the
European Commission by the University of
Sussex in England, while analysing 280
European companies with and without ISO
14001 certification (BATE, 2001).
Studies performed based on data from
National Databases on Environmental
Management systems conclude that these
inconsistencies may be related to differences
in methodologies, and document clear
improvements in environmental performance
indicators (Edwards, 2002).
• In general, EMS’s are company oriented,
and therefore it is not specifically designed
for industrial networking (although this kind
of activity could be included).
• Corporate environmental management
systems do not automatically benefit from
industrial symbiosis. The environmental
improvement plans by an individual
organisation may focus only on companyspecific
issues, disregarding synergies with
other organisations sited in the same local
industrial area, which can result eventually in
resource-inefficiency to lessen the overall
environmental burden of the industrial
network and in adoption of individual
measures that do not answer to the priority
needs of the industrial eco-system as a
whole.
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
Few specific data have been found on the application of EMS for industrial networking. EMS has
been used as a tool in planning and management of industrial eco-parks towards achievement of

collective environmental targets.
Environmental performance objectives provide an essential framework for design of an ecoindustrial
park. Industrial parks and estates all over Asia are gaining certification of their sites
(Lowe, 2001 and Chiu, 2001) and even the Industrial Estate Authority of Thailand (IEAT) has
received ISO 14001 certification as the organisation responsible for 28 estates. The Governor
envisioned an initiative incorporating by-product exchange, resource recovery, cleaner production,
community programmes, and development of eco-industrial networks linking estate factories with
industry outside the estates, by building an eco-industrial network between companies and their
suppliers. In the Philippines, the Eco-Industrial Network project set up by the Board of Investments
(PRIME project) in 1999 started a system for encouraging and managing the exchange of byproducts
between companies and an integrated resource recovery system to serve five industrial
estates south of Manila. It has also applied for ISO 14000 status.
• How successful has it been in industrial networks?
No specific evidence found; it should be noted, however, that Lowe (2001) stated that a real EMS
for industrial networks requires challenging and comprehensive objectives, effective indicators and
structures assuring rapid learning and response, that seeks significant continuing improvement in
the collective environmental performance of the industrial network.
• What are the key documents that discuss and report on it?
(Potential)
Benefit in
industrial
networks
Environmental
Economic
Operational
feasibility
Compatibility with
EU policy
Reference Comment
• Lowe, EA 2001, 'Eco-Industrial Park Handbook for Asian
Developing Countries. A Report to Asian Development
Bank', Environment Department, Indigo Development,
Oakland, CA. Online edition:
http://indigodev.com/ADBHBdownloads.html
• Chiu, A SF, 2001, 'Eco-Industrial Networking in Asia' in
Proceedings of International Conference on Cleaner
Production, Beijing (China),September 2001.
http://www.chinacp.org.cn/eng/cpconfer/iccp01/iccp32.ht
ml
• Petersen A 2003, 'Links to the ISO 14000 series at the
park and company level' in E Cohen-Rosenthal (Ed.)
Eco-industrial strategies: Unleashing Synergy between
Economic Development and the Environment, Greenleaf
Publishing, Sheffield (UK). Edited by Edward Cohen-
Rosenthal; with Judy Musnikow, Work and Environment
Initiative, Cornell University, USA
• LIFE03 ENV/IT/000421 project “Paper Industry
Operating in Network: an Experiment for EMAS Revision
- PIONEER”. Available at: http://www.life-pioneer.info
[accessed 28 September 2009]
• SENOMI. Environmental registration for North Milan.
Available at: http://www.lifesenomi.it [accessed 28
September 2009]
• ECOSIND. Available at: http://www.ecosind.net/
[accessed 28 September 2009]
164
Guidelines for
implementation of
EMS in industrial
networks and
discussion of
case studies.
Discussion of
results of pilot
projects about
implementation of
EMAS in
industrial
networks in the
EU.

• Discussion
Is this topic/concept one for use in ZeroWIN?
Despite some inconsistent data, most literature reports a clear improvement on the environmental
performance of registered companies. In general, EMS can be considered as an adequate support
for better managing sustainability-oriented industrial networking activities, although it is not a key
issue itself for their development.
EMAS and ISO 14001 are internationally recognised and accepted systems; although EMAS has
stricter requirements for registration, ISO 14001 is the most applied system, both in Europe and
worldwide. Also taking into account that the European Commission considers ISO 14001 a valid
system as a first step for EMAS, it can be concluded that limiting the ZeroWIN vision to EMAS
would be an excessively narrow perspective. Therefore, it is recommended that both the ISO 14001
and EMAS standards for implementing EMS be considered for use in the ZeroWIN project.
Is it unproven e.g. not enough data?
No, although some data is inconsistent.
Is it unlikely to be successful based upon previous experience?
No.
References
BATE, 2001. No Link Found Between Management Systems and Performance. Business and the
Environment, ISO 14000 Update, Vol. VII: No. 1(January). Cutter Information Corp. Arlington, MA.
Berry, Michael A., and Dennis A. Rondinelli. 1998. Proactive Corporate Environmental
Management: A New Industrial Revolution. Academy of Management Executive 12: 38-50.
Bremmers, H., Omta, O and Haverkamp, D.J. 2004. Explaining Environmental Management
System Development: A Stakeholder Approach. International Food and Agribusiness Management
Review, Volume 7, Issue 4, 2004.
Cascio, J., 1994. “International Environmental Management Standards.” ASTM Standardization
News, April, 1994, p. 44-48.
Chiu, A SF, 2001, 'Eco-Industrial Networking in Asia' in Proceedings of International Conference on
Cleaner Production, Beijing (China), September 2001.
http://www.chinacp.org.cn/eng/cpconfer/iccp01/iccp32.html
Christopher M. 1992. Logistics and supply chain management: strategies for reducing costs and
improving services; London: Pitman.
ECOSIND http://www.ecosind.net
Edwards D., Amaral D., Andrews P. 2002. EMSs and Performance Change: What Happens?
University of North Carolina at Chapel Hill. National Database on Environmental Management
Systems.
Ethical Investment Research Services (EIRIS), 2007. The state of responsible business: Global
corporate response to environmental, social and governance (ESG) challenges. EIRIS Foundation
European Commission, 2008. EMAS – Factsheet.
http://ec.europa.eu/environment/emas/pdf/factsheet/fs_iso_en.pdf
European Commission. EMAS- The European Eco-Management and Audit Scheme – What is
Environmental Management? http://ec.europa.eu/environment/emas/about/enviro_en.htm
European Commission, 2009. EMAS STATISTICS EVOLUTION OF ORGANISATIONS AND
SITES Quarterly Data 31/03/2009. http://ec.europa.eu/environment/emas
Florida, R. and Davison, D., 2001. Why Do Firms Adopt Environmental Practices (And Do they
Make a Difference)? Chapter 4 in Regulating From the Inside: Can Environmental Management
Systems Achieve Policy Goals?, edited by Cary Coglianese and Jennifer Nash. Washington, DC:
Resources for the Future Press, pp. 82-104.
Heras Saizarbitoria I., Arana Landín G., Molina Azorín J.F.2008 , EMAS versus ISO 14001. Un
análisis de su incidencia en la UE y España. BOLETÍN ECONÓMICO DE ICE Nº 2936 DEL 16 AL
30 DE ABRIL DE 2008.
ISO 2008. The ISO Survey – 2007. ISBN 978-92-67-10489-8.
165

LIFE03 ENV/IT/000421 http://www.life-pioneer.info
LIFE04 ENV/IT/000526 http://www.lifesenomi.it/
Lowe, EA 2001, 'Eco-Industrial Park Handbook for Asian Developing Countries. A Report to Asian
Development Bank', Environment Department, Indigo Development, Oakland, CA. Online edition:
http://indigodev.com/ADBHBdownloads.html
Deanna Hart, M., 2001. Assessment and Design of Industrial Environmental Management Systems.
Ph.D. dissertation. Pittsburgh, PA: Carnegie-Mellon University. McVaugh, J. 1995. Introduction to
the ISO 14000 International Environmental Management Standards. International Journal of
Environmentally Conscious Design and Manufacturing 2(3).
Mohammed, M. 2000. The ISO 14001 EMS Implementation Process and Its Implications: A Case
Study of Central Japan. Environmental Management 25(2): 177-188.
Petersen A 2003, 'Links to the ISO 14000 series at the park and company level' in E Cohen-
Rosenthal (Ed.) Eco-industrial strategies: Unleashing Synergy between Economic Development
and the Environment, Greenleaf Publishing, Sheffield (UK). Edited by Edward Cohen-Rosenthal;
with Judy Musnikow, Work and Environment Initiative, Cornell University, USA.
Rondinelli, D. A., and Gyula Vastag. 1999. Multinational Corporations’ Environmental Performance
in Developing Countries. In Growing Pains: Environmental Management in Developing Countries.
Edited by Mulugetta. Sheffield, England: Greenleaf Publishing Ltd., pp. 84-100.
Russo, M. V., 2001 (unpublished paper). Institutional Changes and Theories of Organizational
Strategy: ISO 14001 and Toxic Emissions in the Electronics Industry. Eugene, OR: University of
Oregon, Department of Management. 45 pp.
Shrivastava P., 1995. The role of corporations in achieving sustainability; Academy of Management
Review, 4: 936 – 960.
Sroufe, R. P., Melnyk, S. A., Vastag, G., 1998. Environmental Management Systems As A Source
of Competitive Advantage. Department of Marketing and Supply Chain Management Michigan State
University. http://www.bus.msu.edu/erm/assets/images/EMS-CA.pdf
Tibor, T. and Feldman, I., 1996. ISO 14000: A Guide to the New Environmental Management
Standards.
University of North Carolina at Chapel Hill, 2003. Environmental Management Systems: Do they
Improve Performance? National Database on Environmental Management Systems. Project Final
Report.
2.3.5 Industrial metabolism
• Industrial metabolism
What are relevant definitions?
The concept of the industrial metabolism has its roots in industrial ecology (section 2.1.2). It uses
an analogy to nature to describe material and energy flows across an industrial economy (Gredel
and Allenby, 1995). Ayres and Simonis (1994) defined the industrial metabolism as ‘the whole
integrated collection of physical processes that convert raw materials and energy, plus labour, into
finished products and wastes in a (more or less) steady-state condition’.
What are the key concepts?
2.3.5.1 Material Flows Analysis
There have been many tools designed to quantify the metabolism of the industrial economy. Their
intellectual histories are generally analogous with a range of techniques referred to as Material
Flows Analysis (MFA). There is a level of discourse in the literature as to how these tools are
applied and how they are defined (Daniels and Moore, 2002). The general principles for MFA,
however, are documented below.
MFA is a quantitative procedure to determine the flows of materials and energy through an
industrial economy. Bulk flows of natural or technical compounds are analysed in terms of input,
output and waste. (Fischer-Kowalski and Huttler, 1999). The total material throughput of a system,
including embedded and hidden flows of materials not present in final products, is included in
166

analyses, as are social and economic factors. Analysis of material flows can be from the firm level
up to an economic region like the EU (Bringezu, 2003). An MFA delivers a complete and consistent
data set for the flows and stocks of a particular material within a defined system at a given time.
Through Mass Balancing the inputs and outputs of a system can be used to highlight flows and
sources of wastes and environmental loadings. Mass Balancing is based on the first law of
thermodynamics, that matter cannot be created or destroyed. It is relevant to MFA as whatever
enters the system as input must either leave the system as output or accumulate within it. Whatever
materials or energy are not present in the end products of an industrial economy, therefore, must
either have left the system as a waste output or have accumulated within it. With this information,
missing materials and energy can be accounted for and analysed, making MFA a powerful tool for
sustainability (Brunner and Rechberger, 2004).
MFAs can be conducted at the local, regional, or (inter)national level; there are a number of
methodologies and definitions in the literature (Ayres and Simonis, 1994). Eurostat has published a
guide for MFA as an output from their environmental accounting work and as such their
methodology is probably the most appropriate for ZeroWIN. It accounts for the material inputs, the
process and accumulation within the economy and outputs. Figure 26 is taken from the
methodology and shows an economy-wide materials balance excluding water and air inputs. This
methodology is for use at the regional and national levels in the context of where they sit in the
wider economy and environment, which is sometimes referred to as Material Flows Accounting
(Schütz and Steurer, 2000).
Figure 26. The MFA. From Schütz and Steurer, 2000.
Substance Flows Analysis
Substance Flow Analysis (SFA) is a sub-tool within the family of tools that are generally referred to
as Material Flows Analysis (Daniels and Moore, 2002). Like much of the work around MFA it was
developed by the research group at the Wuppertal Institute. SFA follows the flows of a specific
substance across an industrial economy. Udo de Haes et al. (1997) outlined a framework for its
application and listed three possible applications for its use, to error check model procedures to find
missing flows, to identify major problem flows and to predict potential sources of pollution.
2.3.5.2 Energy Flows Analysis
Energy Flows Analysis (EFA) is a tool used to quantify the energetic aspects of the industrial
metabolism. EFA is methodologically and conceptually consistent with MFA, however, as the name
suggests, units of energy are accounted for rather than units of material (Haberl et al., 2004).
Figure 27 shows the energy balance for the energy flows of Austria in 1999. The complete
accounting for input, process and output including imports, wastes and hidden flows is structurally
very similar to MFA (Haberl, 2001).
167

Figure 27. An EFA for Austria. From Haberl, 2001.
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
Sundkvist et al. (1999) successfully applied an EFA to a Swedish island, Nämdö (Figure 28),
measuring both natural and societal energy flows in 10 6 kJ. The study helped to identify the
evolution of and the interaction between, the natural and societal systems. Comparison data were
generated on energy required and that locally produced; patterns of resource use were also
commented on. The paper went on to make a series of recommendations to improve sustainability
on Nämdö and any other islands based on the results and the analysis from the EFA.
Figure 28. EFA applied to the island of Nämdö. From Sundkvist et al., 1999.
168

• Discussion
Is this topic/concept one for use in ZeroWIN?
MFAs provide a quantitative account of the flows of materials across an industrial economy, in
effect an appraisal of the transfers within an industrial network. Mass Balancing can be used to
highlight hidden and embedded material flows which would need to be explored and utilised to
achieve zero waste. The systems-based, industrial ecology, approach is conceptually consistent
with the developing vision for zero waste and as such the range of industrial metabolism tools
should be considered in the ZeroWIN approach, although the alternative tools discussed in chapter
2.3 may be preferred.
Is it unproven e.g. not enough data?
No.
Is it unlikely to be successful based upon previous experience?
No, the tools explored for measuring industrial metabolism could be applied successfully in the
ZeroWIN project.
References
Ayres, R. and Simonis, U.E. 1994. Industrial Metabolism: Restructuring for Sustainable
Development. Tokyo: United Nations University Press.
Bringezu, S., 1997. From Quantity to Quality: Material Flows Analysis. S, Bringezu. S, Moll. M,
Fischer-Kowalski. R, Kleijn. V, Palm Eds. Regional and National Material Flow Accounting, ‘From
Paradigm to Practice of Sustainability’. Proceedings of the 1st ConAccount Workshop 21–23
January. Wuppertal: Wuppertal Institute. 306–308.
Bringezu, S. 2003. Industrial Ecology and Material Flows Analysis. In Perspectives on Industrial
Ecology, D. Bourg, Ed. London: Greenleaf Books.
Brunner, P.H. and Rechberger, H., 2004. Practical Handbook of Material Flows Analysis. 1 st Ed.
Lewis Publishers.
Daniels, P.L. and Moore, S., 2002. Approaches for Quantifying the Metabolism of Physical
Economies. Journal of Industrial Ecology. 5(4), 69-93.
Fischer-Kowalski, M. and Huttler, W., 1999. Society’s Metabolism: The intellectual History of
Material Flow Analysis Part II. Journal of Industrial Ecology. 2(4), 107-136.
Gredel, T.E. and Allenby, B.R., 1995. Industrial Ecology, 2 nd Ed, Prentice Hall International Series in
Industrial and Systems Engineering.
Haberl, H., 2001. The Energetic Metabolism of Societies Part I: Accounting Concepts. Journal of
Industrial Ecology. 5(1), 11-33.
Haberl, H., Fischer-Kowalski, M., Krausmann, F., Weisz, H. and Winiwarter, V., 2004. Progress
towards sustainability? What the conceptual framework of material and energy flow accounting
(MEFA) can offer. Land use policy. (21), 199-213.
Schütz, H. and Steurer, A., 2000. Economy-wide material flow accounts and derived indicators, a
methodological guide. [Online]. Available at:
http://www.statistik.at/web_de/static/subdokumente/r_materialflussrechnung_methodenhandbuch.p
df [accessed 2 August 2009]
Sundkvist, A., Jansson, A.M., Enefalk, A. and Larsson, P., 1999. Energy flow analysis as a tool for
developing a sustainable society - a case study of a Swedish island. Resources, Conservation and
Recycling. 25, 289-299.
Udo de Haes, H. A., Van der Voet, E. and Kleijn, R., 1997. Substance Flow Analysis, an analytical
tool for integrated chain management. Bringezu, S., Moll, M., Fischer-Kowalski, R., Kleijn, V., Palm
Eds. Regional and National Material Flow Accounting, ‘From Paradigm to Practice of Sustainability’.
Proceedings of the 1st ConAccount Workshop 21–23 January. Wuppertal: Wuppertal Institute. 306–
308.
169

2.3.6 Social networks
• What is a social network?
Social networks are social structures made of individuals (human beings) or organisations e.g.
enterprises. These elements are called "nodes," they are connected (“tied”) by one or more specific
types of interdependency, such as friendship, economic exchange, dislike or relationships of beliefs,
knowledge or prestige. People have used the term "social network" for over a century to signify
complex sets of relationships between members of social systems at different scales, from
interpersonal to international. Granovetter (1973) found that more numerous weak ties can be
important in seeking information and innovation. Cliques (an exclusive group of people who share
interests, views, patterns of behaviour, or ethnicity) have a tendency to have more homogeneous
opinions.
What are relevant definitions?
“Social network” is a network theory/sociological term concerning social relationships about nodes
and ties. Nodes are the individual actors within the networks, ties are the relationships between
these actors.
Network science is a scientific discipline that examines the interconnections among diverse physical
or engineered networks, information networks, biological networks, cognitive and semantic
networks, and social networks. The National Research Council (of the Unites States) defines
Network Science as "the study of network representations of physical, biological, and social
phenomena leading to predictive models of these phenomena."
What are the key concepts?
Research in a number of academic fields has shown that social networks operate on many levels,
from families or enterprise relationships up to the national level and play an important role in the
way problems are solved, organisations are run and how far individuals succeed in achieving their
goals.
Trust, Significance and Reciprocity are the main functional principles of networks of social entities
(human beings) in a sociological regard.
Reciprocity
Reciprocal exchange is different from the contractually regulated exchange of generally accepted
equivalents (usually money) and refers to the situation in which agents only exchange their material
goods, services or intrinsic needs for appropriate or approximate counter-performances.
Trust
The partners share a common past with shared experience and an anticipated common future.
Exchange or cooperation is not based on contracts but on trust.
Significance
There is an understanding that ones own success can be seen in the benefit of a counterpart.
The heterogeneity e.g. of the ReUse-Computer network is demonstrated, among other things, by
the way in which agents from different areas of society work together in this network (Becker,
2008a).
• Who uses it in industrial networks?
The reference list below provides a selection of examples of the study and use of social networks in
different areas. Today, social networks and network theory are categories in economics as well as
in industrial sociology (also known as "sociology of organisations” or “industrial relations" or
170

“sociology of work”). In terms of regional economy, network theory and social networks are
important tools.
Learning organisation and systems thinking
Aside from its role in regional economies, social network is an important tool with regard to the
learning and developing structure of enterprises and their networks. According to Peter Senge
“'learning organisations' are those organisations where people continually broaden their
capacity to create the results they desire, where new patterns of thinking are developed, and
where people continually learn to see the whole together.”
Peter Senge, director of the Centre for Organizational Learning at the MIT. Author of The Fifth
Discipline: The art and practice of the learning organization, 1990 (new edition of 2007).
• Discussion
Is this topic/concept one for use in ZeroWIN?
Concerning the "industrial network" approach of the ZeroWIN project it is essential by all means to
cover the social network aspect (e.g. with regard to the case studies).
It is by no means only the "homo economicus" (essentially, that individual actors will act in their own
self-interest) or any other rational approach which fully explains the social interactions in networks.
Social networks and network theory therefore have a role to play in understanding, and potentially
influencing the social interactions across industrial networks, to help implement the ZeroWIN case
studies across industrial networks to best effect.
References
Selected literature on social networks, network theory and policy networks:
Atkinson, M.M. and Coleman, W.D., 1989. Strong States and Weak States. Sectoral Policy
Networks in Advanced Capitalist Economies. British Journal of Political Science, 19 (2).
Becker, F., 2007. Daring a new economy –The contribution of science shops to a political
economy of sustainable development. Proceedings of the 3rd International Living Knowledge
Conference, Paris, France.
Becker, F., 2008a. ReUse-Computer – a Green Economic Enterprise Network. Proceedings of the
Third International Community-University Exposition (CUexpo 2008), University of Victoria,
Victoria, Canada.
Becker, F., 2008b. The value conservation concept – What is Green on ReUse-economy?.
Proceedings of the 1. World ReUse Forum, Berlin.
Becker, F., 2009. ReUse-Networks - contribution to a zero waste strategy. p. 161-170. Lechner, P.
(Ed.): Prosperity, Waste and Water Resources, Vienna.
Fürst, D., Schubert, H., 1998. Regional actor networks. On the role of networks in regional
restructuring processes. Spatial Research and Planning. 5/6, p. 352-361.
Granovetter, M., 1973: The Strength of Weak Ties. American Journal of Sociology, 6, (78), 6,
p.1360-1380.
Héritier, A., 1993. Policy-Analysis. Opladen.
Lehmbruch, G., 1984. Concentration and the Structure of Corporatist Networks. Goldthorpe.
Luhmann, N., 1984. Social systems: outline of a general theory. Frankfurt: Suhrkamp.
Luhmann, N., 1995. Social Systems, Stanford: Stanford University Press.
Marin, B., Mayntz, R., 1991. Policy Networks. Empirical Evidence and Theoretical Considerations.
Frankfurt A.M./Boulder, Colorado.
Marschall, A., 1900. Elements of Economics in Industry. Elibron Classics.
Messner, D., 1995. International competitiveness as a problem of social control. Dissertation. Free
University of Berlin. Berlin.
Rhodes, R.A.W., 1990. Policy Networks. A British Perspective. Journal of Theoretical Politics, 2.
Warden, F.V., 1992. Dimensions and Types of Policy Networks. European Journal of Political
171

Research, 21.
2.4 OTHER GENERAL PRINCIPLES
These principles have relevance to sustainable development practices, but are not specific
to industrial networks.
2.4.1 Precautionary principle
Related to pollution prevention.
• What is the precautionary principle?
A guideline for managing environmental risk whereby the lack of scientific certainty of serious and
irreversible damage shall not be used as a reason to not prevent the damage. Most easily
understood as the rule of common sense ‘better safe than sorry’ (Butti, 2009).
Within the EU, the precautionary principle is generally to be used by decision-makers when
potentially dangerous effects from a product or process have been identified, and scientific
evaluation does not allow the risk to be determined with sufficient certainty. In applying it a range of
measures are available from recommendations to binding legal measures (COM(2000).
What are relevant definitions?
“Most commonly used definition” (Lofstedt, 2003);
“Not until this [definition was formulated] that the precautionary principle was universally recognised
as a legal tool” (Butti, 2009):
1992 Rio Declaration: “In order to protect the environment, the precautionary approach shall
be widely applied by States according to their capabilities. Where there are threats of serious
or irreversible damage, lack of full scientific certainty shall not be used as a reason for
postponing cost-effective measures to prevent environmental degradation” (UN, 1992).
COM(2000) in attempting to remedy the absence of a definition of the precautionary principle in the
Treaty on European Union (EC, 2002 and precursors at the same webpage in the reference) other
than in relation to protecting the environment, advocates that “its scope is much wider”, and
recommends that it is applied to:
“Environment, human, animal or plant health”.
Two more detailed definitions are contained in Lofstedt, 2003.
Other, often vague and contradictory definitions are listed in Appendix II to Sandin, 1999.
What are the key concepts?
Protection against risk/uncertainty – the precautionary principle is a natural response to the
uncertain nature of possible effects of human activities on public health and the environment.
“Precautionary approach” – “might be considered as more flexible than the “precautionary
principle”” (Butti, 2009).
“Threats of serious and irreversible damage” – “the serious and irreversible nature of the fear must
be manifest” (Butti, 2009).
“Cost-effectiveness” – as a binding requirement for any precautionary measure” (Butti, 2009).
Measures applying the precautionary principle should be:
• Proportional (to the chosen level of protection);
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• Non-discriminatory (in their application);
• Consistent (with similar measures already taken);
• Based on the examination of the potential benefits and costs of action or inaction (including
non economic considerations, and where appropriate an economic cost-benefit analysis);
• Subject to review (in the light of new scientific data); and
• Capable of assigning responsibility for producing the scientific evidence (necessary for a
more comprehensive risk assessment) (COM(2000), p. 4-5 and p. 18-21).
What definition should ZeroWIN adopt for use in industrial networks and why?
That of the 1992 Rio Declaration (above); possibly with a caveat to extend its scope to include the
categories listed in COM(2000).
• Who uses it in industrial networks?
Policy-makers globally have at least been inspired by the precautionary principle in their response
to far-reaching environmental issues such as ozone-depletion, climate change and biodiversity
(COM(2000)).
In Europe, Greenpeace [NGO] has proven particularly effective, often invoking the precautionary
principle (Lofstedt, 2003).
Which industrial sectors?
National and international leaders and policy-makers (principally in the environment field).
Hazardous Waste treatment/management sector (see Butti, 2009).
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding
Legislation / Policy Relevance to industrial Comment
measure
networks
e.g. on effectiveness of implementation
1992 Rio Declaration NB, this is not strictly a legal tool in
its own right, but it makes specific
reference to use of legal measures,
for example Principle 11 begins
“States shall enact effective
environmental legislation”.
Non-legally binding
Policy measure Relevance to industrial
networks
2001 Stockholm Convention
on Persistent Organic
Pollutants (POPs)
Treaty on European Union
(Original 1992 version and
2002 consolidated version)
COM(2000) 1 of 2 February
2000
Relevant to industries that
produce POPs.
“Community policy on the
environment…shall be
based on the precautionary
principle”.
Relevant to use of the
Principle within the EC.
173
Comment
e.g. on method and effectiveness of
implementation and scope to extend
Set the foundation for recourse to
applying it, but did not expand on it
in the Treaty, nor define it (hence
the need for COM(2000)).
Gives direction on how to apply the
principle.
• What are its advantages? • What are its disadvantages?
It provides a mechanism for reconciling risk to
the environment in the face of uncertainty.
It has received criticism from economists, who
have argued that it applies environmental

174
protection without due regard to the implications
on economic growth (Duriseti, 2004).
• Examples of its application in industrial networks
Performance related data (in particular GHG emission savings, re-use and recycling of waste, and fresh water
savings), especially in the sectors in which ZeroWIN is most interested i.e. automotive, construction, electronics and
photovoltaics.
Performance data – not applicable.
Advocated (not necessarily tested) in:
• 1992 UN Framework on Climate Change;
• 1994 Oslo Protocol on sulphur emission reductions; and
• 1996 Syracuse Protocol for the protection of the Mediterranean Sea against pollution from
land-based sources (Sand, 2000).
NGOs such as Greenpeace are increasingly being turned to in the face of declining faith of policy
makers and regulators, and have often effectively applied the precautionary principle (Lofstedt,
2003).
• How successful has it been in industrial networks?
No evidence specifically relating to industrial networks has been identified, although the principle
has been successfully tested in the courts (COM(2000)).
• What are the key documents that discuss and report on it?
(Potential) Benefit
in industrial
networks
Reference Comment e.g. Very positive benefit demonstrated and
evidenced
Environmental UN, 1992 Set foundation for its development and use.
Environmental Butti, 2009 Positive review of the principle as a tool to
improve quality and safety of hazardous waste
management.
Economic Duriseti, 2004 Offers three methods for incorporating a
precautionary response to uncertainty into costbenefit
analysis in ways that balance economic
growth and environmental protection. This
addresses concerns of economists by placing
Compatibility with EU
policy
Compatibility with EU
policy
• Discussion
the principle on firmer economic foundations.
COM(2000) 1 Use of the principle by decision makers firmly
advocated, and guidelines for applying it
provided.
EC, 2002 Advocates its use by EC Member States.
Is this topic/concept one for use in ZeroWIN?
Yes.
Is it unproven e.g. not enough data?
Argument for use of the precautionary principle must be made on a case by case basis. Since being
recognised by the UN General Assembly in 1982 and enshrined in the Rio Declaration in 1992 it
has been written into an increasing number of sector’s policy documents, including UN Framework
Conventions and WTO Agreements and its application has been proved in the courts (COM(2000)).
Is it unlikely to be successful based upon previous experience?

No.
Butti, L., 2009. Editorial: Hazardous waste management and the precautionary principle. Waste
Management, 29(2009), 2415-2416.
COM(2000) 1. Commission of the European Communities, 2000. COM(2000) 1 on the
precautionary principle, Brussels.
EC, 2002. Consolidated versions of the Treaty on European Union and of the Treaty establishing
the European Community, 2002. Official Journal of the European Communities (2002/C 325/01).
Available at: http://europa.eu/abc/treaties/index_en.htm [accessed 6 August 2009]
Lofstedt, R.E., 2003. The Precautionary Principle: Risk, Regulation and Politics. Trans IChemE,
81(B), 36-43.
Sand, P.H., 2000. The precautionary principle: a European perspective. Hum Ecol Risk
Assessment, 6, 445-458.
Sandin, P., 1999. Dimensions of the precautionary principle. Hum Ecol Risk Assess, 5, 889-907.
UN, 1992. Report of the United Nations conference on environment and development, Annex I: Rio
Declaration on environment and development. Available at:
http://www.un.org/documents/ga/conf151/aconf15126-1annex1.htm [accessed 6 August 2009]
2.4.2 Proximity Principle
• What is the proximity principle?
The proximity principle advocates that wastes should be managed as close as practicable to their
point of origin. The principle is therefore aimed at ensuring efficient waste management practices,
by minimising the cost, resource use and emissions of transporting waste.
What are relevant definitions?
“The Proximity Principle recognises that waste should be disposed of as near to its place of
production as possible” (Phillips et al., 2001).
What are the key concepts?
The proximity principle (along with the principle of self-sufficiency) are written into the EU’s Waste
Framework Directive (2008, Article 16):
“The network shall enable waste to be disposed of or recovered in one of the nearest
appropriate installations, by means of the most appropriate methods and technologies, in order
to ensure a high level of protection for the environment and public health.”
Phillips et al. (2001) in an analysis of UK waste minimisation clubs cited the proximity principle as
one of the three key principles for sustainable waste management, alongside the Best Practicable
Environmental Option (BPEO) and the Waste Hierarchy.
A current issue of some contention is trans-boundary and sometimes global transfer of wastes –
typical news stories refer to Western European household waste being shipped to East-Asian
countries for recycling. Whilst it cannot be disputed that such practices go against the proximity
principle, this serves to highlight the weakness of the principle – it’s narrow perspective. A more
comprehensive consideration is required to determine the best course of action for individual waste
streams and in individual circumstances. It may be environmentally preferable for ships bringing
goods to the West from Asia to return carrying mixed waste with some residual value that will be
utilised (e.g. scrap metal), rather than the ship returning empty and the waste being instead put to
lower use close to origin. It may be preferable from an economics/business perspective to
transport used glass bottles (to take one example) for recycling in Europe, where demand exists
from the wine-making trade. Social implications may also play a factor – if the standard of
living/unemployment rate of countries means that people can improve their livelihood from manually
sorting waste (that happens to originate from elsewhere, where it may otherwise be consigned to
landfill) this (and also health factors) should be considered.
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There is some indication that the proximity principle is losing appeal: although advocated in earlier
UK waste policy documents, it is not mentioned in its current Waste Strategy 2007. Nor is it referred
to in the EU’s current waste prevention thematic strategy communication (COM(2005) 666 final).
What definition should ZeroWIN adopt for use in industrial networks and why?
“The principle that waste should be managed as near as practicable to its place of origin.”
• Why do they use it?
Key legislative, policy and economic drivers and barriers for application in Industrial Networks?
Key legislative and other industrial policies which are (or should be) driving uptake?
Legally binding
Legislation / Policy
measure
EU Waste Framework
Directive 2008.
Relevance to industrial
networks
Principally aimed at informing
Member States’ national policies.
• What are its advantages? • What are its disadvantages?
It increases the likelihood that
additional environmental
emissions from transporting
waste are minimised.
• Discussion
176
Comment
e.g. on effectiveness of implementation
Only passing reference – difficult to
enforce this legislation.
‘Proximity’ is only one factor in the consideration of siting waste
facilities. It is likely that this is incorporated as a basic,
background principle for informing siting of, for example, ecoindustrial
parks and waste management facilities. In this
respect the principle has been subsumed into more
comprehensive concepts (such as cleaner production, ecoefficiency
and zero emissions), and therefore no longer needs
separate consideration.
Is this topic/concept one for use in ZeroWIN?
Yes, but only as a general principle, to ensure that it is not overlooked.
Is it unproven e.g. not enough data?
Not applicable.
Is it unlikely to be successful based upon previous experience?
Not applicable.
EU, 2008. Directive 2008/98/EC on waste (Waste Framework Directive). Official Journal of the
European Union. Available at: http://ec.europa.eu/environment/waste/framework/index.htm [Last
accessed 26 August 2009]
Phillips, P.S., Pratt, R.M. and Pike, K., 2001. An analysis of UK waste minimization clubs: key
requirements for future cost effective developments. Waste Management, 21(4), 389-404.
2.4.3 Social Enterprises
• What are social enterprises?
Social enterprises are significant for the ZeroWIN approach because the ‘Best Available
Technology’ in recycling technologies are handiwork technologies. This is discussed for example in
the WEEE review process. In economic aspect as well as in sustainable aspect it is meaningful to
cooperate with social enterprises with regard to this Best Available Technology. Otherwise with
regard to labour costs it may not be economical using handiwork technologies. This may drive the
approach towards huge recycling plants (but how to feed them constantly?) or into informal
economy in developing countries.

Social enterprises are businesses trading for social and environmental purposes. This is often
referred to as the “triple bottom line” of social enterprise – their economic, social and environmental
aims (sometimes referred to as the three P’s – profit, people and planet). Many commercial
businesses would consider themselves to have social objectives, but social enterprises are
distinctive because their social and/or environmental purpose is absolutely central to what they do –
their profits are reinvested to sustain and further their mission for positive change. They do aim to
generate a profit (surplus) but this profit cannot be distributed for private gain, only for collective,
social benefit. They are therefore often referred to as “not-for-private-profit distribution”.
“In the UK the Global Entrepreneurship Monitor report (Harding and Cowell, 2004) indicated that
almost 7% of the population are engaged in owning, running or managing a socially oriented
organisation. A survey of social enterprise activity across the UK conducted for the DTI revealed
around 15,000 social enterprises, with a turnover of £18 billion and employing around 800,000 staff
(IFF, 2005). Some of the apparent growth would appear to be the result of genuinely new activity in
areas considered suitable for social enterprise organisations such as the green and environmental
economy, ICT and the leisure and social and community care sectors.“ (Evans, 2007).
The European policy position appears to be that the social economy (the collective term social
enterprise activity) has an important role to play in combating social exclusion in the EU mainly on
the basis of its claim to enable participation in employment, in particular through “meeting unmet
needs and the creation of employment in the EU…[and]…addressing social exclusion at all levels
through enhancing the employability of unemployed people in particular those belonging to
disadvantaged groups.” (ECOTEC, 2000).
Social entrepreneurship is a concept often used in conjunction with social enterprise to describe an
approach that seeks to solve social problems using entrepreneurial principles, and which measures
performance in social impact (e.g. Social Return on Investment – SORI) rather than profit or sales.
Social or environmental benefits are the main aims of social entrepreneurship, and although most
social entrepreneurs are not-for-profit, this is not a requirement, and the term ‘more-than-profit’ may
be more appropriate in some cases. Social entrepreneurship can therefore include a range of
philanthropic individuals and can be seen as quite close to the notion of Corporate Social
Responsibility (CSR). It is therefore a concept which for some is too allied to individualistic notions
of entrepreneurship, which goes against the essentially social focus of social enterprise and tends
to elevate the idea of the entrepreneur as ‘hero’ over and above the collective. “Collective
entrepreneurship” is thought by some to be a more accurate alternative (CONSCISE, 2003).
What are relevant definitions?
The UK government work to the following definition - a social enterprise is a business with primarily
social objectives whose surpluses are principally reinvested for that purpose in the business or in
the community, rather than being driven by the need to maximise profit for shareholders and
owners. (Department of Trade & Industry (Eds.): Social Enterprise: A Strategy For Success, UK,
2002).
Social Enterprise London, however, acknowledges the importance of the ownership and control of
the enterprise and they therefore define social enterprise in terms of three core characteristics:
• Enterprise orientation - i.e. they produce goods and services to a market and seek to be
viable trading concerns that strive to make a surplus;
• Social aims - are explicit (e.g. job creation, service provision). Ethical values and
accountability to the wider community are also often important; and
• Social ownership - as autonomous organisations with structures based on participation by
identified stakeholder or member groups (SEL, 2001).
“There is relatively little research on social enterprise and environmental sustainability, although
many social enterprises aim to address environmental issues as well as social problems, with
examples in community renewable energy…, recycling and refurbishment (e.g. furniture) and
environmental education” (CEEDR/BERR, 2009).
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What are the key concepts?
A social enterprise is a business. That means it is engaged in some form of trading, but it trades
primarily to support a social purpose. Like any business, it aims to generate surpluses, but it seeks
to reinvest those surpluses principally in the business or in the community to enable it to deliver on
its social objectives. It is, therefore, not simply a business driven by the need to maximise profit to
shareholders or owners.
Social entrepreneurs tackle a wide range of social and environmental issues and operate in all parts
of the economy. By using business solutions to achieve public good, social enterprises have a
distinct and valuable role to play in helping create a strong, sustainable and socially inclusive
economy. There remains a problem concerning whether ‘social entrepreneurs’ are identified as
individuals or organisations however.
What definition should ZeroWIN adopt for use in industrial networks and why?
UK definition above.
• Discussion
Is this topic/concept one for use in ZeroWIN?
Yes – the approach of social enterprises/entrepreneurs can have a limited but real influence on the
manner in which ZeroWIN can implement its overarching strategy to achieve its targets. Notably, it
can assist the project to meet one of the key acknowledged guiding principles for zero waste in
industrial networks: commitment to the triple bottom line: social, environmental and economic
performance standards.
Is it unproven e.g. not enough data?
Partially – no data has been found/evaluated on the potential integration of social enterprise
concepts to a whole-system approach to reduce waste/emissions in industrial networks.
Is it unlikely to be successful based upon previous experience?
No.
References
Castelli, L., 2005. European Social Entrepreneurs – looking for a better way to produce and to live.
Hrsg. von Le Mat- Decent Work Through Social Economy. Ancona.
Berlin Senate Department for Urban Development, Unit Social City (ed.), 2004. BEST: Berlin
Development Agency for Social Enterprises and Neighbourhood Economy. Presentation of Results,
Berlin 2004.
CEEDR/BERR, 2009. SMEs in a Low Carbon Economy Final Report for BERR Enterprise
Directorate. London: BERR, URN 09/574.
Department of Trade & Industry (Eds.), 2002. Social Enterprise: A Strategy For Success, UK.
ECOTEC, 2000. Third System and Employment: Final Report of External Evaluation, Brussels,
ECOTEC.
Evans, M., 2007. Mutualising Cash in Hand? Social Enterprise, Informal Economic Activity and
Deprived Neighbourhoods. Local Government Studies. Vol.33, No.3, pp 383-399.
Harding, R. and Cowell, M., 2004. Social Entrepreneurship Monitor United Kingdom 2004 (London;
London Business School) (www.gemconsortium.org)
IFF Research, 2005. A Survey of Social Enterprises across the UK (London: SBS - Small Business
Service).
Institute of Social Science Research, Middlesex University London (ed.), 2003. The Contribution of
Social Capital in the Social Economy to Local Economic Development in Western Europe.
CONSCISE Final Report, London.
Social Enterprise London, 2001. Understanding Social Enterprise, London: SEL.
Technology Network Berlin eV / European Network of social economy and local development
(Eds.), 1997. Community economic development and social enterprises. Experience. Tools and
recommendations. Berlin.
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2.5 SUMMARY
The process of identifying, describing and critically reviewing the potential concepts for use in the
ZeroWIN project has been an essential first step in developing a vision that will endure over time, as
well as creating a defined, consistent approach for how all 30 project partners will conduct their
activities in the four distinct focus areas (automotive, construction, electronics, photovoltaics). It
provides a baseline reference document of the state of the concepts at the start of the project and a
concise description of all the relevant approaches, methods and tools at the consortium’s disposal.
The ZeroWIN consortium came up with a list of over 40 concepts which could be relevant to
ZeroWIN’s vision and approach, and through various levels of debate, investigation and review
many of these were eliminated or integrated. By thorough review of the existing literature and
subsequent peer-review and discussion, the 23 concepts (plus several related sub-concepts)
remaining have now been agreed on as useful for ZeroWIN. This is discussed in Section 3, and
insofar as this process dovetails with creating the ZeroWIN vision, it is explained further in
Deliverable 1.2, ZeroWIN Vision Report (Section 2: Developing the Vision). It is worth noting that
the proposed vision is also in line with the revised (but slightly controversial and as yet unapproved)
EU Waste Framework Directive (COM (2005) 667 final), which has a life cycle approach, and waste
prevention, recycling and target-setting as key elements.
The relative importance and usefulness of each concept to ZeroWIN has also been informed by this
literature review, and has been discussed in a ZeroWIN General Meeting involving all partners
(October 2009). This is presented as a mind map and explained in Deliverable 1.2, ZeroWIN Vision
Report (Section 3: Defining the Vision).
The review is thorough but not exhaustive – it distils the relevant academic literature and policy
reports and presents it in respect of how it relates to ZeroWIN. There are many references to
sources of more detailed information on narrow subject areas. It has been designed so that each
section follows a set order, to enable the reader, partners and where necessary stakeholders, to
find the information they require efficiently. Wherever possible each section of the literature review
has been written by the project partners who already have experience in that field, and who are
going to be involved with it during the project.
3. GENERAL DISCUSSION
Chapter 2 has presented all of the concepts upon which the ZeroWIN project is to be founded. To
give the ordering of the sections within Chapter 2 some meaning, the concepts were sub-divided as
titled. The concepts in each sub-division were then presented in order of importance/relevance to
ZeroWIN as far as possible. Those appearing near the beginning were identified as being the most
important for ZeroWIN, followed by those with clear relevance and a role to inform ZeroWIN, and
those near the end of each sub-section having only minor relevance to the project. This is explained
further and presented more clearly, as a mind map, in Deliverable 1.2, ZeroWIN Vision Report
(Section 3: Defining the Vision).
In Section 2.1 the broad approaches, or over-arching strategies, were presented. It is central to this
project that a zero waste approach will be pursued – focusing on waste prevention and material
efficiency across the whole system – through the supply chain, across the industrial network and all
parts of the products/services and processes involved. The zero waste philosophy builds on and
continues to be informed by the earlier approaches discussed in turn – cleaner production, pollution
prevention and zero emissions.
Eco-design was identified at the review stage to be much more than only a method to achieve zero
waste, and so was elevated from Section 2.2 (as in Version 1 of the Literature Review) to Section
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2.1 in this version, and incorporating within it the relevant aspects of three previously separate
concepts – prolongation of product use, de-materialisation and green chemistry. This reflects the
realisation that waste and inefficient use of resources must be tackled throughout the system, and
this has to start at the design stage. If materials and energy in excess of those actually required are
not used in the first place, and the materials that are used are designed to be reused at their end-of
life, then fewer resources are used and the need for (less effective) measures to quantify, mitigate
or manage the waste further down the line is reduced.
From the peer-evaluation and subsequent re-working of the Literature Review since Version 1, only
seven from the original twelve concepts remain in Section 2.2. As discussed in the Vision Report
(Deliverable 1.2) regarding the scope and boundaries of the ZeroWIN project, end of life
management (Section 2.2.6) as a concept is to be considered outside of ZeroWIN’s remit –
ZeroWIN’s focus is on the role of industry and on waste preventive measures not management.
However, elements of end of life management are relevant, for example where materials come back
to producers through producer responsibility regulations. In addition, to evaluate the impact of the
ZeroWIN project, the remaining wastes will have to be measured. For these reasons it was
determined that this section should be included in the Literature Review.
Life Cycle Assessment (LCA) is clearly to be the primary method for the evaluation of the ZeroWIN
case studies, as the established international standard. It is timely therefore that the European
Commission has now published (in March 2010) the International Reference Life Cycle Data
System (ILCD) Handbook, as an authoritative guide to support decision-making and assessing
environmental impacts using LCA. Carbon footprint measurement also has merits and so is to be
considered; using full cost accounting methods on the other hand was ruled out when considered
alongside these alternatives. Implementation of quantitative assessment throughout the ZeroWIN
project will be driven forward by the dedicated Work Package (WP7).
The social, economic and political importance of Third Sector Organisations (TSOs) and their
networks has been widely recognised as significant. Academic studies have clearly revealed the
varied form and structure of the third sector and their networks and the major impact they can have
in delivering essential services, promoting civic engagement and contributing to economic activity
and social cohesion. Indeed, many governments and some private companies use TSOs to
resource or deliver basic goods and services; substantial (and growing) amounts of money are
routed through the sector, either directly or indirectly, via grants, contracts for specific services, tax
exemptions, secondments of staff, free places on training courses or in other ways. Consequently, it
is important that the ZeroWIN project takes into account the activities and impact of social elements
– networks and enterprise – as part of the drive towards zero waste in industrial networks.
It is perhaps not surprising that the 23 concepts selected for use within the ZeroWIN project are
largely established, tried and tested approaches, methods and tools, many of which have
international standards. Successful industrial and business sectors will want to protect their market
shares and hard-won reputations for excellence and are thus unlikely to be willing to “gamble” on a
ZeroWIN vision based upon unevaluated and often untried hypothetical or philosophical concepts.
However, putting these 23 concepts together into a single framework – a whole system – and
applying this framework to different industrial networks within and across Europe will be extremely
challenging and should facilitate the desired step-change from the traditional linear resource flow
model to a more sustainable cyclical resource flow version.
The ZeroWIN vision thus far has been developed as a comprehensive, joint understanding for all
project partners. This common vision report will be circulated to stakeholders in advance of the
vision conference (taking place on 6 July 2010 in Southampton, UK) for feedback and comment.
The involvement of stakeholders is central to the development of a successful and achievable
vision; stakeholders from all the industrial and business sectors involved in this project and from
outside will have an opportunity to input their views before and during the vision conference. It is
envisaged that a refined and even more robust version of the ZeroWIN vision will emerge from this
process.
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4. CONCLUSIONS
Zero waste is a whole system approach to redesigning resource flows to minimise emissions and
resource use, comprised of an underpinning philosophy, a clear vision and a call to action. It
represents a shift from the traditional linear resource flow model to a cyclical resource flow version
within industrial networks that emulates the sustainable cycles found in nature. In order to put this
whole system approach into practice and deal with apparent contradictory aspects of sustainability
(for example, adopting measures which give preference to environmental considerations over
economic or social aspects – or vice versa), a clear, joint understanding of the key issues is
essential for all project partners and external stakeholders. This literature review provides a
summary of the underpinning concepts, tools and methodologies that have been used to create a
common vision on zero-waste entrepreneurship and sustainable industry. The ZeroWIN approach is
enshrined in its vision, which is laid out in Deliverable 1.2, ZeroWIN Vision Report.
The strategies that will form the central approach of ZeroWIN are:
• Use of effective waste prevention methods (zero waste, industrial ecology);
• Designing waste out of the system (eco-design);
• Industrial symbiosis (and eco-industrial parks);
• Closed-loop supply chain management;
• Use of new technologies;
• Applying individual producer responsibility (product stewardship); and
• Accurate monitoring and assessment of results (LCA, carbon footprinting).
The process undergone to deliver this second version of the ZeroWIN Literature Review has
resulted in a thoroughly investigated, peer-reviewed and commonly-agreed document, which has
these strategies at its core. This reflects the decision by the ZeroWIN consortium to discard perhaps
a surprising number of potentially relevant “green” concepts, methods and tools from the ZeroWIN
approach (Factor 4/10/X, Full Cost Accounting and The Natural Step Framework to name a few)
and to focus on others (that is, those evaluated in this document). Using a whole system approach,
a (draft) common vision has been created that will form the foundation of the whole project; this will
facilitate and ensure a robust and consistent methodological approach and evaluative framework for
each of the 9 different ZeroWIN case studies. In each case, the best mix from the ‘basket of
concepts’ evaluated in this Literature Review will be employed in order to maximise improvements,
as measured against ZeroWIN’s targets to reduce waste, emissions and water use. In addition, it
has saved the partners of the individual case studies having to undergo a less-thorough and
systematic form of this process for each of their work streams and prevented potentially conflicting
viewpoints arising during key stages of the project.
It is worth ending this report by reflecting that this activity has never been undertaken previously by
such a large group of international experts and industrial organisations with such a range of
different viewpoints and perspectives. As a consequence, the outputs and conclusions from this
review will be of international interest and significance as well as underpinning the ZeroWIN
consortium’s approach to investigating zero waste in industrial networks. ZeroWIN is an ambitious
project set with difficult goals, but meeting these challenges will be necessary if society is to solve
the pollution and resource problems of current industrial practices in a sustainable way.
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5. LIST OF FIGURES
Figure 1. Linear and cyclical resource flows……………………………………………………………...11
Figure 2. Summary of legislative drivers for zero waste………………………………………………...14
Figure 3. Flow of materials and finances in the Swiss e-waste management system……………….24
Figure 4. The 3 levels at which Industrial Ecology operates……………………………………………28
Figure 5. Waste hierarchy…………………………………………………………………………………..33
Figure 6. Design for Environment Process Model……………………………………………………….39
Figure 7. Regional eco-efficiency opportunity assessment methodology……………………………..71
Figure 8. Interrelationship among elements of total performance evaluation of an EIP……………..75
Figure 9. The entities and flows in Kalundborg…………………………………………………………..77
Figure 10. Processes in a supply chain…………………………………………………………………...84
Figure 11. Example supply chain network structure……………………………………………………..85
Figure 12. A typical construction supply network………………………………………………………...90
Figure 13. Classification based on problem context in GrSCM………………………………………...93
Figure 14. Schematic illustration of logistics and reverse logistics…………………………………….98
Figure 15. Xerox’s equipment recovery & parts re-use/recycle process……………………………..104
Figure 16. Product lifecycle……………………………………………………………………………….112
Figure 17. Hierarchy of product recovery options………………………………………………………113
Figure 18. Overall framework of an LCA………………………………………………………………...127
Figure 19. Supply-chain life cycle model of a product (attributional modelling)……………………..128
Figure 20. Scope of the ILCD documents……………………………………………………………….140
Figure 21. General EIA process flowchart………………………………………………………………153
Figure 22. Worldwide distribution of ISO 14001 certifications in 2007……………………………….157
Figure 23. ISO 14001 registered companies in EU27 (2007)…………………………………………158
Figure 24. EMAS registrations in EU 27 in 2009.............................................................................159
Figure 25. Sectorial distribution of EMAS sites (by NACE codes) in 2009…………………………..161
Figure 26. The MFA………………………………………………………………………………………..167
Figure 27. An EFA for Austria…………………………………………………………………………….168
Figure 28. EFA applied to the island of Nämdö………………………………………………………..168
6. LIST OF TABLES
Table 1. PROMISE Manual Ecodesign Strategies……………………………………………………….31
Table 2. Legally binding policy measures for eco-design……………………………………………….41
Table 3. Non-legally binding policy measures for eco-design…………………………………………..43
Table 4. Examples of generally favourable and adverse inter-relations between environmental
and other product system requirements………………………………………………………..45
Table 5. References showing (potential) benefit of eco-design in industrial networks………………49
Table 6. Suggested actions for implementing cleaner production……………………………………..58
Table 7. Comparison of waste and emission reduction schemes……………………………………...65
Table 8. Sample of definitions of SCM…………………………………………………………………….88
Table 9. Exemplary areas where LCA plays a role………………………………………………….....126
Table 10. Impact categories and their characterisations………………………………………………129
Table 11. Environmental impact assessment methodologies…………………………………………131
Table 12. Selected LCA software tools………………………………………………………………….132
Table 13. Approaches to LCA adoption by European firms…………………………………………..134
Table 14. Advantages and disadvantages of LCA……………………………………………………..139
Table 15. Methodological differences of LCA and LCC………………………………………………..141
Table 16. Percentage of relevance of key ZeroWIN sectors among EMAS certified sites in 2009.160
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