Eco-efficiency analysis of products or processes

The results of the study on wood preservatives have shown that the environmental impact from wood treated with the newly developed product is less than the environmental impact from the most common alternative on the market. The chemical cost is higher for the new product, but studied from a life cycle perspective, the total cost for end customers is only slightly higher for wood treated with the new product.

Another finding was that the end of life treatment is crucial for the outcome of the eco-efficiency study in this case. A scenario where wood treated with the new product was incinerated and the energy recovered, instead of sent to landfill, was studied. The environmental impact and the cost decreased significantly, even though only costs for sending waste to landfill were changed.

The time needed for the study depends much on the products or processes that are going to be compared. Compilation of data is time-consuming, especially when the study is dependent on external sources. If all data is received from in-house sources the compilation is often easier. To be able to validate the data received, it is valuable to have different sources of information for external information. In some cases, external information on the necessary level of detail is not even available, and then qualified assessments need to be made.

The result gives a very much simplified picture of the actual situation. It is important to clarify that the results are normalized and do not show any actual values. Furthermore, weighting of different environmental problems is complicated, and the weighting method in this method is not very scientific. However, the analysis gives an indication of sustainability of different products or processes and can assist managers in taking (well-founded decisions.

This kind of study is most useful before decisions are taken, to guide the decision makers. Anyhow, they tend to be conducted when the decisions are almost taken. It is important to discuss, at a strategic level, when the eco-efficiency analysis should be conducted. This goes for all kinds of environmental assessments.

In chemical industries, potential risks to humans or the environment is crucial when developing new products and since the eco-efficiency analysis does not take these issues into special consideration; the analysis could be complemented with an Environmental Risk Assessment.

Business value 
Decisions makers do not always have the possibility to evaluate all available data, and therefore decisions are often based on subjective analyses. The result of the Eco-efficiency analysis is easy to understand, even though the method is complicated and the receiver does not have the time to evaluate all input data. The cost for conducting an Eco-efficiency analysis is lower than the cost for taking consequences of incorrectly based decisions.

The eco-efficiency analysis can help companies to avoid sub-optimizing their business activities. The results show which products or process to focus research and development on and which products that have low possibility to become cash cow for the company. It also shows in which life cycle stages improvements will be most efficient.

The eco-efficiency analysis can be conducted at an early stage of product development and give indications on whether the new products will be good business for the company. With that, the company can avoid sub-optimized investments in research and development.

Furthermore, this can be a valuable marketing instrument for showing retailers and customers that the life cycle cost is in the same range as the competitor's, even though the sales price might be higher.