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A Case Study - Proctor & Gamble

A Case Study - Proctor & Gamble

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Assessment Tools at Company Level

Hamburg, June 14th 2002
By Tom

Feijtel, PhD

Associate Director, Product Safety Procter & Gamble
1

Outline
CONTEXT ² P&G  R&D Business Decision-making  Environmental Management Framework  Sound Management of Chemicals/Products  Substitution ? Tools and Illustration  Conclusions 

Procter & Gamble 
  

Global consumer goods company Sales of > $40 billion/yr Operates in over 140 countries More than 300 brands 
   

Laundry and cleaning products Personal care & beauty care products Pampers, Tissue Towels Pharmaceuticals Food and petfood 

Over 120 manufacturing sites worldwide

STATEMENT OF PURPOSE:
´WE WILL PROVIDE PRODUCTS OF SUPERIOR QUALITY AND VALUE THAT IMPROVE THE LIVES OF THE WORLD·S CONSUMERSµ

In practical terms«

Improving the Quality of Life«.

The integration of : 
 

Economic Development Social Responsibility Environmental Protection

Sustainability ««««« An operational definition
´Sustainable development is a very simple idea. It·s about ensuring a better quality of life for everyone, now and for generations to come.µ
Department of the Environment, Transport and the Regions, London, UK, February 1998

R&D Business Decision-making
Consumer Test Organizations Customer Consumers Addressing Societal Concerns

Market Research Consumer Tests

Performance

LCI data

R&D-Business Decision
Supply Processing

Cost

Human & Env RA

Efficient Resource and Waste Management

Competition

Compliance and Risk Assessment :
- Production & manufacturing compliance - Chemical classification/labeling - Chemical testing & registration - Risk Assessment - etc..

Bench Marking Performance/Value

AN ENVIRONMENTAL MANAGEMENT FRAMEWORK Recognizes Four Key Elements:
Human and Environmental Safety  Regulatory Compliance  Efficient Resource Use and Waste Management  Consideration of Social Concerns 

Safety
‡Human Health Risk Assessment ‡Ecological Risk Assessment ‡ ‡ ‡ ‡ ‡

Regulatory Compliance
Manufacturing site mgmt.. systems auditing Manufacturing site wastes reporting Material consumption reporting New chemicals testing and registration Product & packaging classification & labelling

OBJECTIVE
Economically (and technically) Feasible, Socially acceptable, Environmental Management towards Sustainability

‡ Economic analysis ‡ Product LCI ‡ Eco-design ‡ Disposal company auditing ‡ Material consumption monitoring and reduction ‡ Manufacturing site mgmt.. systems auditing ‡ Manufacturing site environmentalauditing ‡ Auditing major & new supplier s

‡ Understand & anticipate. ‡ Interact

Resource Use and Waste Management

Addressing Social Concerns

Data Data Organisation
DECISION MAKING

Environmental Management - an overall framework Goal:
Environmentally and Economically Sustainable Management
1. Human and Environment al Safety 2. Regulatory Compliance 3. Efficient Resource use and waste management 4. Addressing societal concerns (i.e. understand & respond)

Elements:

Tools:

Human health Risk Assessment (occupational and consumer exposure

Manufacturing site compliance auditing Manufacturing site waste reporting (e.g. TRI) Material consumption reporting

Manufacturing site wastes and energy consumption, monitoring and reduction Material consumption monitoring and reduction Supplier auditing Product LCI/LCA

Understand: -Opinion surveys -Consumer and market research -Networking Respond: -public presentations and publications -Scientific and industry working groups -Reporting -Co-operation with other stakeholders to find solutions

Environmental Risk Assessment at all µlife¶-stages of the chemical (i.e. production, formulation, use and disposal)

New Chemical testing and registration Product and packaging classification and labeling

Eco-design Economic Analysis

Air Emissions

Solid Waste

Substitution ? What, why, How ?

Aqueous Emissions

SOUND MANAGEMENT OF CHEMICALS

S U S T A I N A B I L I T Y

ENVIRONMENTAL

RISK ASSESSMENT
PRODUCT

P R O D U C T

ACCEPTABILITY
(e.g. LCA, Cost-Benefit)

PRODUCT

Performance
(e.g. consumer/product Score/testing)

HUMAN RISK ASSESSMENT

D E V E L O P M E N T

SOUND MANAGEMENT OF PRODUCTS

TOOL BOX ? 
    

Improving the Quality of Life«.

Risk Assessment Lifecycle Assessment Risk Management Risk Communication Cost-benefit «and many other «.

RISK ASSESSMENT
IS AN ESSENTIAL BUSINESS TOOL IN: 

The Development of New Technologies, Product Ingredients and Manufacturing Processes Industrial Site and Emissions Evaluations Registrations and Discharge Permits Natural Resource Damage Assessments Precautionary and Environmental Labeling 

  

A Hazard - Risk Continuum (Adapted from Swanson and Socha 1997)
Hazard Ranking and Scoring Risk

Toxicity + PhysicalChemical Properties

Toxicity + PhysicalChemical Properties + Production/ Release

Toxicity + Fate and Transport Model

Generic Risk Assessment

Endpoint-specific Site-specific Risk Assessment

Amount and Specificity of Data Required

Illustration of where the tools may fit
Chemical Use/ Avoidance Priority list (e.g. WFD)

Prioritization/ Screening for Further Assessment

CMRs POPs COMMPS EURAM MSDS Labels
Hazard Communication Tools

Safe/Unsafe Handling, Production & Use

Hazard
Classification & Labelling

Risk Assessment

Chemical Ranking & Scoring Tools

Risk Assessment

RISK Management
How to think about substitution ? 

Several basic ways to do this:
Reduce the Hazards  Reduce the Exposure by the way a product is designed (e.g., less of the same 

substance, managing availability, or fate/biodegradability

or a combination of both  or innovate, substitute, «. 

Ingredient x : Safety success criteria
Safety programme:   

Fate profile significantly better than substitute Effect profile not significantly different than substitute RQ in all compartments < 1

R&D and Business Realities «. Performance/cost/«.
Specs Reference Sub-1 Sub-2 Sub-3 Sub-4 

Performance

Env Safety

Relative cost $$ $$$$ $$$ $$ $

Need to account for all legs of the stool

Since it may not be actionable «

RISK Management
How to think about substitution ? 

Other example: mass efficiency 
 

use a 10X better performing chemical twice as toxic as the one it replaces risk profile would be 5X better  

It also (probably) has a significant lifecycle benefit, as much less materials/energy will be used to make it, per unit of performance Maybe cheaper as well«.

THE HAZARDS OF ´HAZARD-BASEDµ substitution
Detaches ´Doseµ from ´Riskµ  Is Easily Misperceived by the Public as Synonymous with ´Riskµ ² based action  Does not encompass holistic human and environmental risks  Does not include entire life-cycle and other ¶potential· impacts 

I / if

l

t

Life Cycle Analysis of product/service

= Accounting of all energy and raw material consumption (inputs) and associated environmental emissions (outputs) for the whole life cycle of a product or service
S u p p ly M a n u fa ctu rin g U se D isp o sa l

©¤¨§§¤§§¡ ¤ ¦¥ £ ¤ ¢ ¡£¢ ¡ 

I / if

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LCA is a process that (ISO) 

      

1/ Evaluates the environmental burdens associated with a product, process, or activity by identifying and quantifying energy and materials used and wastes released to the environment. 2/ Assesses the potential impact of the energy and material flows on the environment, 3/ Identifies and evaluates opportunities for environmental improvements.

What does LCA look at ?
Resource use efficiency: - Energy - Water - Land Impact categories: - CO2 emission/Global warming - Smog/Ozone formation - Ozone depletion - Acidification - Eutrophication (N/P) - Human health - Ecotoxicity

Risk Assessment vs LCA
Life cycle assessment (LCA) Env. Risk assessment (ERA)

LCA

ERA

Environment LCA profile, report Clearance

Comparative Voluntary

Absolute Compulsory

Evolution within the regular powder category since 1988 excluding the use stage
Reco dose 120% 100% 80% 60% 40% 20% 0%

Photochemical smog

Packaging/wash

Ozone depletion

Energy Regular powder 1988 Regular powder 2001

Climate change

Solid waste

Eutrophication Aquatic toxicity

Acidification

LCA vs Risk Assessment ?   

RA and LCA are complementary tools, not mutually exclusive Decision for environmental improvement and sustainable development must be based on the outcome of variety of tools There is not such thing as a simple answer

CONCLUSIONS
BUSINESS REALITIES PLAY A ROLE IN SOUND CHEMICAL AND PRODUCT MANAGEMENT

1. All Social Activities Carry Environmental Pressures and Efforts are Needed to Identify the Extent and Severity of this potential Impact 2. Technological Innovation is Essential to Human and Environmental Quality Improvement and Business Success 3. Only Products/Services Offering Competitive Performance and Value Survive to Deliver Environmental Benefits

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