Life Cycle Assessment And Forest Products: A White Paper
Life Cycle Assessment and Forest Products:A White PaperSeptember 2010
Life Cycle Assessment and Forest Products:A White PaperTable of ContentsExecutive Summary . 2!What is LCA?. 3!A Standardized, Transparent, Verifiable and InternationallyRecognized Approach . 4!What Are the Main Reasons for Carrying Out an LCA? . 5!Driving Performance Improvements . 5!Effective Marketing Communications . 6!Meeting Stakeholders’ Expectations . 6!Complying With and Anticipating Legislative Requirements . 7!Understanding the Limitations of LCA . 7!LCA 101. 9!Goal and Scope Definition. 9!Inventory Analysis . 12!Impact Assessment . 12!Interpretation of Results . 13!Issues Specific to the Forest Products Industry . 13!The Wood, Pulp and Paper Industry – Environmental Flows and Impacts . 13!Carbon. 15!Water — Used vs. Consumed . 15!Recycled Content Paper — Understanding the Fibre Cycle . 15!Biodiversity . 16!Environmental Communication . 16!Resources. 18!1
Life Cycle Assessment and Forest Products:A White PaperExecutive SummaryIn most industries worldwide, including the forest products sector, there is anincreasing focus on the environmental, social and economic sustainabilitycredentials of companies and products.This has led to an increase in the application of life cycle thinking, which includeseconomic, environmental and social consequences of a product or process overits entire life cycle, from raw material extraction to manufacturing, packaging,distribution, use and end of life. Life cycle thinking has been developed intosystematic approaches. The United Nations Environmental Programme (UNEP)has defined Life Cycle Management (LCM) as “an integrated concept formanaging the total life cycle of products and services towards more sustainableconsumption and production patterns.” Under this approach, Life CycleAssessment (LCA) is one of the specific analysis tools that can be used forproducts or services.LCA is increasingly being used as an important and effective tool to supportmultiple types of sustainability goals. Its use has grown with the development andapplication of an internationally recognized standard by the InternationalOrganization for Standardization (ISO), the ISO 14040 series. Numerous lifecycle assessments have been completed on wood, pulp and paper for a varietyof purposes and several practical design tools and procurement tools have alsobeen successfully developed based on LCAs.LCA’s advantages are derived from the comprehensiveness of the approach. It isa sophisticated analysis tool that requires a strong understanding before beingused effectively or interpreting results. In its definition of LCA, the InternationalOrganization for Standardization states that it is the “compilation and evaluationof the inputs and outputs and the potential impacts of a product systemthroughout its life cycle.” For each life cycle stage (e.g. raw material extraction),all the processes are identified (e.g. transporting harvested fibre to the mill), andfor each process, all the inputs (e.g. fossil fuel) and outputs (e.g. CO2) areidentified. Each of the inputs and outputs are then compiled and categorized intopotential impacts on the environment (e.g. climate change). Once the impactsare calculated, the sum of the air, water and soil impacts are interpreted andconsidered together against the original goals of the LCA. LCAs are most usefulwhen the goals of the assessment have been clearly defined in advance.The Forest Products Association of Canada (FPAC) andPricewaterhouseCoopers (PwC) developed this white paper to provideinformation about LCA and to be a reference for those interested in learning howLCA can be applied in the forest products industry. This White Paper is intendedfor those new to LCA as well as those who are already familiar with the concept.2
What is LCA?Life cycle assessment (LCA) is a comprehensive environmental accounting toolwith well-established procedures and methods that are governed by specificrules and standards, most notably those developed by the InternationalOrganization for Standardization (ISO). LCA’s use continues to increase andthere are now many experienced LCA practitioners world-wide who havesuccessfully applied LCA across a broad range of industry sectors.As illustrated in thisdiagram from TheInteruniversityResearch Centre for theLife Cycle of Products,Processes andServices (CIRAIG), LCAis an approach thatcovers the whole lifecycle of a product or aservice, usually “fromcradle-to-grave”, i.e.from raw materialextraction, tomanufacturing,packaging, distribution,use and end of life.Process steps areidentified for each stagein the life cycle. Theinputs (materials and energy) and outputs (emissions and pollutants) aredetermined for each step. The inputs and outputs are then grouped into impactcategories, which are categories of environmental problems. Typical impactindicators include abiotic depletion, acidification, climate change, human toxicity,1ecological toxicity, eutrophication , fossil fuel depletion, photo-oxidant smogformation and stratospheric ozone depletion.By examining the product or service over its entire life cycle, informed decisionscan be made to avoid transferring pollution from one life stage to another or fromone media (air/water/soil) to another. Although carbon emissions and carbonfootprinting are very important aspects of life cycle studies, carbon is just one ofmany elements evaluated within an LCA.“LCA is the compilation and evaluation of the inputs and outputs and thepotential impacts of a product system throughout its life cycle”.Definition from the International Standards Organization (ISO).1Eutrophication is the increase of nutrients discharged to water bodies which negativelyimpacts water quality and disrupts ecosystems.3
Life Cycle Assessment and Forest Products:A White PaperA Standardized, Transparent, Verifiable and InternationallyRecognized ApproachISO has developed standards for LCA under the ISO 14040 family ofinternational standards, notably ISO 14040:2006: Principles and framework ofLCA and ISO 14044:2006: Requirements and guidelines for LCA standards.These define the methods for developing and verifying LCAs. It is recommendedthat any LCA be performed according to ISO 14040 standards.LCAs follow four fundamental steps. These steps, which are explained later inthis document, are:1) goal and scope definition;2) inventory analysis;3) impact assessment; and4) interpretation.These steps are linked in the LCA methodology diagram from the U.S. Life CycleInventory Database.There are also specific requirements for data quality and transparency, andrequirements to ensure that the assessment is robust, for example:! sensitivity analysis, to understand how sensitive the results are to themethods and data; and! uncertainty analysis, to quantify the uncertainty introduced into the resultsdue to the cumulative effects of model assumptions, input uncertainty anddata variability.The ISO Standards require third-party review by an independent expert panel(the “peer review” process) prior to any public communication of results.Because of the scientific rigour required, conducting an LCA is technicallychallenging and time-consuming. If it is well planned, its benefits can outweighthe costs.4
What Are the Main Reasons for Carrying Out an LCA?Driving Performance ImprovementsLCA can enable companies to prioritize environmental investments. Companiescan target investments more effectively, since LCA provides a detailedbreakdown of the main contributors (materials, energy sources, step of the lifecycle, etc.) to key environmental impacts. With data on which choice will lead tobetter environmental performance, companies can choose projects with superiorimprovement-to-cost ratios.LCA supports companies by looking at processes and supply chainscomprehensively, which in turn can spark significant overall performanceimprovements. It can be a major catalyst of innovation within a company becauseit brings people together from different functional departments and from differentpoints in the supply chain, many of whom may never have collaborated before, tofind new ways of managing the life cycle of products. In addition, adopting anLCA approach provides a unique opportunity to rethink relationships withsuppliers, notably by developing concepts of mutual progress and throughimproved information exchange and transparency.LCA can contribute to cost savings through more efficient use of resources orenergy, or by identifying alternative processes that lower overall productioncosts.LCA can also be used to identify improvements to products, processes andservices. The basis for analysis in an LCA is the functional unit, which is adescription of what the product does (e.g. a paper towel cleans up a spill). Theanalysis is set up to avoid “false savings,” such as using fewer resources for aproduct that requires more units to perform the same task (e.g. a smaller papertowel may not have a lighter environmental impact if two smaller paper towelsare needed for the job compared to one larger one).Software tools have been developed based on LCA in order to support life cycle2based decisions. For example the Athena Institute’s EcoCalculator for buildingassemblies and Impact Estimator for Buildings help designers choose buildingmaterials based on life cycle information.LCA can be used to define key performance indicators (KPIs) to monitorprogress and communicate relevant information to stakeholders, especially if thedesign/production process is linked to a company-wide EnvironmentalManagement System. This may also serve as the basis for new strategicpositioning of products based on the integration of LCA in daily businesspractices, notably through eco-design, new markets or customer targets,marketing claims, etc.2The Athena Institute Ecocalculator and Impact Estimator http://www.athenasmi.org5
Life Cycle Assessment and Forest Products:A White PaperEffective Marketing CommunicationsCustomers and consumers are increasingly aspiring towards healthier and moreenvironmentally friendly consumption and greener procurement practices, andthey want quality information to assist them in making choices. Marketing claimsregarding the environmental aspects of products or services are most effectivewhen the claims are substantiated by data. Because of a growing number ofunsubstantiated environmental and green claims, customers and consumershave more confidence in claims that have been verified by an independent party.LCAs that follow an internationally recognized methodology and are verified by apanel of independent experts can provide credible information on which to basemarketing communications.LCAs provide the bases for developing Environmental Product Declarations(EPDs), which are used to communicate LCA results and other product andenvironmental performance information.A key strength of LCA is the ability to communicate the multiple benefits ofdifferent initiatives a company has underway. Some companies may want tocommunicate only one or two elements, e.g. carbon footprint, water consumptionor energy consumption. Others, however, may want to provide a morecomprehensive picture and LCA can serve as a tool to support a broad range ofcommunications.Meeting Stakeholders’ ExpectationsInnovative and proactive companies, policy-makers and NGOs are alsopromoting life cycle thinking since it provides a holistic view of the environmentalperformance of products. For example, many governments around the world arefactoring in environmental requirements and performance indicators whendeveloping procurement criteria. Investors are increasingly looking forenvironmental performance indicators to support their valuations and to assesscompany risk.Companies’ industrial customers need to address their own customers’ andstakeholders’ expectations and will need data from upstream in their supply chainto do so. If they are carrying out LCAs, it is likely that they will need to work withtheir suppliers to obtain accurate and recent data. This raises such questions as:will the availability of an LCA carried out by a supplier be a decisive point in theirchoice of suppliers? Or, will the results of an LCA, and the demonstration ofimprovement over time, become a competitive advantage?Retailers are beginning to launch initiatives themselves, and are pushing theneed for information upstream. For example Walmart is effectively makingcarbon footprinting and emissions reduction actions a requirement for itssuppliers for certain product categories. Tesco, a major retailer in the UK,introduced carbon labelling in stores in 2008 and is continually adding to thenumber of products labeled, which implies increasing cooperation with theirsuppliers.6
Complying With and Anticipating Legislative RequirementsTo date, using life cycle approaches has been voluntary, and used mainly bycompanies interested in improving and disclosing the environmental performanceof their products.However, there is a trend towards increasing legislation based on environmentalaccounting. For example, the first Canadian mandatory requirements forgreenhouse gas (GHG) reporting/accounting and emissions caps and penaltiesfor large emitters were introduced in 2007 in the province of Alberta. Many otherprovinces (e.g. British Columbia, Ontario and Quebec) are now implementingreporting and verification requirements for the purpose of calculating baselineemission levels starting in 2010. In Europe, several legislative requirements aredirectly based on LCA, such as the Energy-Using Products Eco-design Directive.Many countries around the world are beginning to explore mandatory national,environmental labelling schemes. For example in France, under the GrenelleLaw, the mass-market retail industry will most likely have to displayenvironmental information based on national LCA guidelines by 2011. Currentlyenvironmental labelling regulations are not considered to be technical barriers totrade under the World Trade Organization (WTO) rules. This means thatcompanies wishing to sell products in France and other countries that haveimplemented similar initiatives will have to perform LCA studies and produce therequired environmental information. The cost of doing so may be very highunless companies are prepared and have already started down the LCA path. InNorth America, it is not known whether similar legislation will be enacted.Understanding the Limitations of LCALCA provides many benefits, however it is important to understand its limitationsif it is to be used effectively. Knowing these limitations is key to determiningwhether it is the most appropriate tool for a given situation.!The results of an LCA are relevant for the geographic area where the datais collected. For example, an LCA conducted on an energy-intensiveproduct in a region where electricity is mainly from hydroelectricity cannotbe applied to the same product produced in another region where theelectricity is mainly from fossil fuels, unless the LCA calculations areadjusted accordingly.!Inventories of the inputs and outputs are collected based on where theyoccur, and then are translated into environmental impacts on a global orregional scale. The results from an LCA identify potential impacts on theenvironment and are not a calculation of actual impacts. Therefore LCAcannot replace local studies such as ecosystem-based studies of forestdynamics and biodiversity.!LCA is a steady-state approach. It is a snapshot at a point in time and doesnot capture changes over time. However, LCA practitioners are activelystudying ways to address this issue.7
Life Cycle Assessment and Forest Products:A White Paper!LCA is quantitative and generates many numbers, all of which need to beinterpreted. It does not provide a pass or fail result.!LCA is a risk management tool that supports the identification of the largestimpacts and can provide a basis of comparison over time. Improvementswill result from the quality of the subsequent decisions.!LCA is an environmental accounting tool with an inherent level ofuncertainty and it should not be seen as having the same level of precisionas financial accounting. LCA requires a very large amount of data,particularly to calculate all the inputs and outputs for every step. Databasesare often used since it is impractical to collect all the necessary data fromoriginal sources (e.g. cannot get data from all the specific power plantsfrom which electricity was sourced). Databases are improving, butpractitioners need to understand all the assumptions, the age of the data,etc., and this may not be possible for every data point. There are numerousassumptions made during the assessment. For example, practitioners haveto make assumptions about how to allocate electricity used in a plant whichproduces multiple products on the same equipment. Additionally, turningthe inputs and outputs into their impacts on the environment is not an exactscience and there are several credible methodologies that are used forimpact assessment.!The results of two LCAs on a same subject may differ according to theobjectives, processes, quality of the data, assumptions and the impactassessment methods used. This makes transparency in LCA reporting acrucial element for communication and is the reason why ISO standardsrequire it.!Conducting an LCA is very resource-intensive, requiring personnel with thenecessary expertise, access to data and databases as well as specializedsoftware.!LCA typically does not address the economic or social aspects of aproduct, however the life cycle approach and methodologies described inthe ISO standards could be applied to these aspects.Understanding LCA’s limitations upfront during the planning phase will help toensure that the goals of the assessment are achieved or determine whetherother life cycle approaches would be more appropriate. Understanding LCA’slimitations along with its benefits will also improve understanding of LCAspresented by others.8
LCA 101According to the ISO standards, there are four steps in an LCA:!!!!Goal and scope definitionInventory analysisImpact assessmentInterpretation of the resultsGoal and Scope DefinitionThe first question to consider is: why is the organization considering carrying outan LCA?This question is not explicitly addressed in the Standards, but experiencesuggests that this will help define the level of assessm
Life Cycle of Products, Processes and Services (CIRAIG), LCA is an approach that covers the whole life cycle of a product or a service, usually “from cradle-to-grave”, i.e. from raw material extraction, to manufacturing, packaging, distribution, use and end of life. Process steps are identified for each stage in the life cycle. The
(A) boreal forest º temperate forest º tropical rain forest º tundra (B) boreal forest º temperate forest º tundra º tropical rain forest (C) tundra º boreal forest º temperate forest º tropical rain forest (D) tundra º boreal forest º tropical rain forest º temperate forest 22. Based on the
2.1 Life cycle techniques in life cycle sustainability assessment 5 2.2 (Environmental) life cycle assessment 6 2.3 Life cycle costing 14 2.4 Social life cycle assessment 22 3 Life Cycle Sustainability Assessment in Practice 34 3.1 Conducting a step-by-step life cycle sustainability assessment 34 3.2 Additional LCSA issues 41 4 A Way Forward 46
Life Cycle Impact Assessment (LCIA) "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" (ISO 14040:2006, section 3.4) Life Cycle Interpretation "Phase of life cycle assessment in which the .
life cycles. Table of Contents Apple Chain Apple Story Chicken Life Cycle Cotton Life Cycle Life Cycle of a Pea Pumpkin Life Cycle Tomato Life Cycle Totally Tomatoes Watermelon Life Cycle . The Apple Chain . Standards of Learning . Science: K.7, K.9, 2.4, 3.4, 3.8, 4.4 .
Life Cycle Impact Assessment—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
4.UNEP/SETAC (2011). Global Guidance Principles for Life Cycle Assessment Databases. UNEP/SETAC Life-Cycle Initiative. ISBN: 978-92-807-3021-. 5.UNEP (2003). Evaluation of environmental impacts in Life Cycle Assessment, Division of Technology, Industry and Economics (DTIE), Production and Consumption Unit, Paris. 6.ISO 14040 (2006).
2.0 Life Cycle Assessment (LCA) 5 2.1 Life Cycle Inventory (LCI) 7 2.2 Life Cycle Impact Assessment (LCIA) 11 2.3 Framework 13 2.4 System Boundaries 16 2.5 Limitation and Problems 19 3.0 Life Cycle Cost Assessment (LCCA) 20 3.1 Life Cycle Cost (LCC) 20 3.2 Levelized Cost of Energy (LCOE) 22 3.3 Financial Supplementary Measures 23
3.1 life cycle 3.2 life cycle assessment 3.3 life cycle inventory analysis 3.4 life cycle impact assessment 3.5 life cycle interpretation 3.6 comparative assertion 3.7 transparency 3.8 environmental aspect 3.9 product 3.10 co-product 3.11 process 3.12 elementary flow 3.13 energy flow 3.14 feedstock energy 3.15 raw material LCA MODULE A1 18
