The Socio-Eco-Efficiency Analysis: SEEbalance

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The Socio-Eco-Efficiency Analysis SEEbalance
SEEbalance
high socio -eco-efficiency
Reduction of raw material and energy consumption
Environmental impact
Social impact
low number of working accidents
Costs
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The Four Strategic BASF Guidelines for Long-term
Success

Help ourcustomers to bemore successful
Earn apremium on ourcost of capital
Ensuresustainabledevelop-ment

Formthe best teamin the industry
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The Three Pillars of Sustainable Development
Sustainable Development
ecology
society
economy
SEEbalance-Analysis
Eco-EfficiencyAnalysis
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Development of SEEbalance

• From the Eco-Efficiency Analysis to the
  SEEbalance
• aim
• Integration of quantifiable social indicators in
  the BASF eco-efficiency analysis
• schedule starting point 2001
• end point March 2005
• this subproject was a part of the BMBF project
  Sustainable Chemistry of Aromatics
• co-operation partners for the development of the
  SEEbalance were

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What is an Socio-Eco-Efficiency Analysis
(SEEbalance)?

• Method for the comprehensive assessment of
  products and processes.
• Ecological and economic and social aspects are
  given equal weight in assessments.
• The products are analyzed from the angle of the
  end customer.
• (Future) scenarios and effects of various action
  options are presented.
• Eco-efficiency analysis is a standard tool in
  the BASF Group more than 240 analyses have been
  carried out (about 15 SEEbalance).

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SEEbalance Results Mens Shirts
User benefit
alternative
Comparable alternatives
Wearing a blue mens shirt (40 times)
100 cotton shirt
100 polyester shirt (PET) blended fabric shirt
(65 cotton, 35 PET)

• This analysis includes in the social assessment
  the stakeholder employees, consumers, national
  community and future generations.
• The 100 polyester shirt is a hypothetical shirt
  considered only for comparison and is not
  frequently encountered in the market.

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ResultsBase Case Blue Mens Shirts
Wearing a blue mens shirt (40 times)
0,75
0,75
envirnonmental burden
1,00
environmental burden
1,00
1,25
0,75
1,25
1,00
costs
0,75
1,25
0,75
1,00
1,00
costs
social influence
1,25
0,75
1,00
social influence
1,25
0,75
1,25
1,00
costs
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Weighting FactorSurvey in Germany
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Analogies between Ecological and Social LCA
Ecological LCA
Social LCA
Potential impact of product or processes on
natural capitale. g. - energy consumption
- global warming potential (GWP)
What is to be assessed?
Potential impact of product or processes on
human/social capital e. g. - consumer - future
generation
1st Inventory analysis (inputs/ outputs)
2nd Impact assessment for defined
indicators e. g. GWP 11 CO2-equivalent per UB
1st Inventory analysis (inputs/ outputs)
2nd Impact assessment for defined
indicatorse. g. employees 3 working accidents
per UB
Ökologischer Fingerprint
Social Fingerprint
Aggregation and presentation of results
Ecological Fingerprint
Employees
Energy consumption
1,0
Internationalecommunity
0,5
Consumer
alternative 1
UB user benefit
Emissions
Area use
alternative 2
0,0
Local national community
Future generation
Raw material consumption
Eco-toxicity potential
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ResultsSocial Fingerprint

• The social fingerprint shows the social influence
  of a product or process according to the
  weighting factors

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ResultsEmployees Working Accidents

• The graph shows that the cotton shirt manufacture
  causes about four times more working accidents
  than the polyester shirt manufacture.
• The accidents occur primarily during cotton
  cultivation, since this step is very labour
  intensive.
• Many accidents are caused by the use of
  pesticides.

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Assessment Scheme for Social Criteria
Source Schmidt
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Course of Action

• The SEEbalance will be used as an official tool
  for life cycle assessment in the eco-efficiency
  group
• Boosted external communication and public
  relations
• In the future 10 20 of all studies will be
  SEEbalances

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How Does SEEbalance Work?

• 1st step Search for the economic sector of the
  product
• e.g. polyester sector production of polymers
  (NACE 24.16)
• 2nd step Search for the entries in the social
  LCA database
• e.g. Production of polymers (NACE 24.16)
• Working accidents 0.058 accidents / 1000 t
• Number of employees 9,9 employees / 1000 t
• ... (all other indicators)

• 3rd step Multiply specific social profile with
  the product quantities

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NACE - International Compatibility

• Related classifications in more than 140
  countries
• Limited compatibility with NAICS (Canada, USA,
  Mexico)

Source Eurostat 2003
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NACE - The EU-Classification of Industries
Sectors
Industries
A, B
Agriculture

and
forestry
,
fishing
C, D, E
Manufacturing
industry
F
Construction
G, H, I
Commerce,
hotel trade,
transports
Financial
industry,
enterprise
services
J, K
L-Q
Public
and private
services
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NACE Hierarchical Levels
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Life Cycle of the Cotton Shirt
production
disposal
use
mining of raw materials
fertilzer/ pesticides
raw materials
sum of all transports
MSWI
cultivation of cotton and transports
agents
retail
cleaning/ 40 times
yarning
confection
weaving
ironing
upgrading
collection of old clothing
production of chemicals for textiles
dyeing
wearing of the shirt
production in China
Not included because the impact for all
alternatives are equal
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SEECube
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Placement of the SEEbalance
cradle-to-gate ...from raw material to factory
gate
cradle-to-grave ... including use and recycling
eco-profile
cradle-to-grave and costs ... including all
life cycle costs
LCA
cradle-to-grave, costs and social aspects ...
including social aspects
eco-efficiency
SEEbalance
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Aims of the SEEbalance

• 1. Quality-of-life
• Improvement of objective living conditions
• Improvement of subjective well-being
• 2. Social Cohesion
• Reduction of disparity and social exclusion
• Fortification of social bonds and coherence
• 3. Sustainability
• Intergenerational fairness
• International responsibility (intergenerational
  fairness)

According to the system of GESIS/ ZUMA 2001
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Reasons for the development of the SEEbalance
Kölsch Darf man das LOGO von Nike verwenden?
Negativ Werbung!!!
Integration of the third pillar of sustainability
Increasing pressure on part of society
Supposed hormonal effects of phthalates
(plasticizer) in childrens toys resulted in
disappearance from the market even though no
scientitic proof existed
Acceptance by the customer is imperative for the
purchase of a product
Taste of packaged food, e.g. sausages
TV enclosure with flame retardant
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Application of the SEEbalance

• Profit
• secure decisions about products
• and markets
• communication
• on coperate level
• on product level
• has an established and quantifiable
• basis
• (e.g. for coperate reports)

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Procedure
define customer benefit
identify products / processes
establish life cycle
society
ecology
economy
determination of social profiles for each step
determination of eco-profiles for each step
determination of costs for all life cycle
segments
aggregation of stakeholder effects
aggregation of the effects categories
calculation of total life cycle costs
normalization of social effects
normalization of environmental impact
normalization of costs
create SEECube