Recently read a blog post on TriplePundit by ClimateCheck, regarding the development of ISO 14064, which covers the measurement and reduction of GHG emissions.
A comment in the article (link is here) caught my eye:
"One of the challenges is the use of an “approved or standardized” approach to quantifying the carbon credits created by new technologies. There are many approaches being used, ranging from in-house engineering calculations to full life cycle analyses (LCA) and computer models"
It made me think about the 'state of the art' of LCAs...(yes, I know: I may lead a very lonely life)......anyway, I do think that LCAs can be a very powerful tool to identify, measure, and manage GHG emissions, as well as do the same for other important 'sustainability' metrics such as: resource consumption (i.e. water); toxics use and emissions, and of course carbon footprinting.
LCAs have been around for quite a while; I developed (rudimentary) tools for environmental management problems in the 80s and 90s; focusing on chemical disposal / recycling challenges. Product Stewardship and 'Responsible Care' were the primary drivers of this market at this time; both programs were developed by the chemical industry in response to potential strict regulations in the aftermath of catastrophic environmental incidents (Bhopal, West Virginia chemical releases). But these programs did not really look at impacts in production; they focused more on the impacts after the sale.
Currently, qualitative LCAs are in use ("LCA Lite" is a term a peer of mine in the manufacturing consulting industry has used). These are quite useful for strategic planning, prioritization and ranking of initiatives and programs, and communications / marketing purposes, but may not add value for decision making on supply chain optimization and 'greening', or similar decisions in green product development in PLM efforts.
I think the standards organizations such as ISO and the Voluntary Carbon Standard are taking a lead in the development of rigorous methodologies, as well as definition of metrics that may be accepted by industries.
This is a market sector that I think both technology companies and service providers may have significant success in the next few years; tech companies in the CSR and supply chain mgt sectors are well positioned to incorporate LCA functionality (and data sets); and 'white space' development and industry - specific customization will be required to get LCAs to the point of being widely accepted tools for sustainability decision making.
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Saturday, May 10, 2008
Use of Life Cycle Assessments (LCA) in Sustainability Programs
Friday, April 18, 2008
Forrester releases CSR Tech Vendor review
Had a chance to review the just released Forrester report, and it is a sign of the growing maturity of this market that a research company like Forrester is covering CSR technology as an emerging segment. I have met with a few market research firms in the past 6 months to discuss the cleantech and CSR markets. For the most part, they are just starting with their own due diligence into this space, so they are not up to speed on the market, vendors, key initiatives, and growth strategies. They will most likely address this space coming from their own areas or strength: enterprise software, business analytics, supply chain management, etc.
Forrester broke down CSR technology categories as follows:
- Niche CSR
- GRC (Governance, Regulatory, Compliance)
- Business Applications (performance mgt, analytics)
No specific mention of technology platforms for sustainability in the greening of the supply chain, though. I think that this need, along with greening of IT / Data Centers and GRI Reporting, are the primary market drivers for buying these technology solutions today. The supply chain management issue (along with PLM) also directs ties into compliance with new toxics regulations such as REACH and RoHS; creating an additional market driver.
They talked to about 30 companies, which may seem like a good number, but still is a relatively small sample, given the breadth of technologies that they are covering (GRC tech companies alone comprise a big group, and there are a significant number of emerging CSR reporting technology firms on the horizon).
I thought the recommendations were rather broad, but recognize that the report is geared towards a technology buyer community who may be just getting up to speed on this segment. Recognizing that this report will most likely be followed in the near future with in-depth vendor analyses and market segment reviews, I think buyers will need corresponding strategies around the type of complimentary services that are required. It is clear that each technology platform arrives at the CSR market with its own strength and focus, but CSR itself is based on the premise of enterprise level and multiple domain business process development. At this stage of the market, significant consulting help will be required to build enterprise level solutions, regardless of the technology platform strengths.
Consulting services such as CSR strategy development, systems integration, domain specific expertise (i.e. environmental, community development, etc) and also 3rd party validation / assurance are necessary and critical at this early stage of market maturity. Look for an upcoming blog post on this subject…
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