Eco-efficiency analysis of products or processes
The aim of this example is to illustrate how the eco-efficiency of a newly
developed product can be compared with competitive products with the same
customer benefit. The strategy is based on experiences at Akzo Nobel.
In order to make sound decisions, it is important to consider many
different types of aspects. To include environmental aspects in various
types of decision have become more and more critical. These environmental
aspects embrace different issues, from an increased demand on inherent
properties of chemicals to targets on the reduction of carbon dioxide
emissions. Adding the economic dimension in an environmental assessment
increases the complexity further, but also presents an aspect that is of
utmost importance in business decisions.
Eco-efficiency is a widely used expression with many definitions. The
following definition has been used in this strategy; Eco-efficiency is the
ratio between creation of economic value and ecological impact (BASF
Seminar, May 2005). The method for Eco-efficiency analysis used in this
strategy is developed by BASF, a German chemical company.
The purpose of this strategy is to show how life cycle data for
environmental impact and costs can be combined to compare products with
the same function. The analysis can also be used for comparing different
processes with similar customer benefit. The target groups are managers
and project leaders, who might use the method for guidance in for example
decision making, strategy planning, investment decisions or external
communication. Another target group is environmental support functions,
who might conduct this type of study at the request of the management.
Using this strategy provides guidance on which products or processes that
are worth developing in a long term perspective. Since the customer
benefit is studied from a life cycle perspective, the study indicates how
the customer will benefit from the compared products.
The strategy is developed based on experiences from studies conducted
by personnel from Environmental departments at Akzo Nobel and mainly based
on a study performed on a newly developed wood preservative and its
competitive products on the American market.
More information about Eco-efficiency can be found
here.
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