IDENTIFICATION OF THE RESEARCH AGENDA AND ISSUES IN RELATION TO CLEAN DESIGN (ECO-DESIGN) REPORT February 1997 A report for the EPSRC prepared by The Centre for Sustainable Design, Surrey Institute of Art and Design, Farnham, Surrey CONTENTS Management Summary 1.0 INTRODUCTION 1.1 Purpose 1 1.2 Definitions 1 1.3 Scope 2 1.4 Methodology 2 1.5 Structure of the Report 3 2.0 FINDINGS 2.1 Introduction 3 2.2 Benefits of Clean Design 3 2.3 Clean Design Activity Levels 5 2.4 Drivers and Prospects for Change 6 2.5 Management of Clean Design 8 2.6 Success Factors 9 2.7 Obstacles 12 3.0 STRATEGIC OPTIONS 3.1 Introduction 15 3.2 Relative Level of Funding 16 3.3 Objectives 17 3.4 Design Definition 18 3.5 Environmental Issues 19 3.6 Sector Focus 19 3.7 Company Vs Wider Issues 20 3.8 Types of Company 20 3.9 Technical Vs Management Issues 21 3.10 Summary of Recommendations on Strategy 22 4.0 PROJECT OPTIONS AND PRIORITIES 4.1 Introduction 22 4.2 Suggested General Priority Areas 24 4.3 Other Project Areas 26 4.4 A Phased Approach 27 4.5 Collaboration 27 ANNEXES 1 References 2 Acknowledgements 3 Sector Issues 4 Case Studies MANAGEMENT SUMMARY The purpose of this report is to assist EPSRC, and also ESRC, in identifying the research agenda and issues in relation to clean design (eco-design), the systematic incorporation of life cycle environmental considerations into product design. It examines the benefits, current levels of clean design activity, drivers, management practices, and success factors and obstacles, both within and external to firms. Generic issues and issues for EPSRC sectors are examined. The report is based on information from a range of sources, including discussions with leading companies and individual experts, and published and unpublished sources, including survey data. Its main specific objective is to identify and prioritise areas for research in relation to clean design, as a basis for future strategic and tactical direction. It is not in itself a detailed survey of the subject, nor was it within the scope of the work to evaluate in detail specific project suggestions. Main Findings The main findings are as follows: Clean design is an important area for research it is a new and still limited activity, except in a few sectors, compared to environmental considerations in processes and operations; unlike the latter area of activity, there are few environmental regulations applying to products, while consumer market pressures are still weak outside of a few countries; the most active sectors are those affected by new or impending packaging and producer responsibility regulations e.g. the electronics and IT sectors it is likely to grow considerably in importance as regulations increase, (especially on waste), market pressures grow (especially as major corporate customers adopt the new environmental standards and place requirements on their suppliers), and as the sustainability imperative increases (requiring large increases in materials and energy efficiency) there are potential benefits for companies (materials and other cost savings, added value, improved competitiveness, market advantage, and new opportunities from innovation), for society (more competitive business, greater materials and energy efficiency) and for the environment there is a particular need to help companies, especially small and medium sized enterprises (SMEs) to meet the challenges and opportunities There is a range of obstacles to its effective application, including: external to firms lack of institutional, economic, market and infrastructure arrangements for reverse logistics (take back, recycling, etc.) gaps in technology (e.g. availability of substitute materials and processes for product design and manufacture, availability of remanufacturing, disassembly and recycling technologies) inadequacies in data and support for decision-making limited cooperation along supply chains, and among the various interested parties in industry and government (clean design cannot result in improved product environmental performance unless loops are closed; this requires multi-dimensional cooperation within firms lack of commitment to environmental improvement lack of awareness and training inappropriate organisational cultures/structures lack of managed approach to design decisions lack of resources (especially SMEs) Recommendations Taking into account the present position, relative benefits, the various success factors and obstacles, and the broad remits of EPSRC and ESRC, the main recommendations are as follows: General strategy the relative level of clean design project funding should be increased in a phased manner in the short term the emphasis should be on: advancing knowledge, awareness, training and best practice materials/energy saving and "end of life" aspects sectors where there is already considerable or emerging activity the medium to longer term (strategic) aim should be to (starting now): encourage innovation encompass whole life cycle and sustainable development issues cover a broader range of sectors while the project emphasis should be on technical research, to be most effective and beneficial, this needs to be carried out within a strong business and management context, with some projects on management and wider issues the focus for help should be on SMEs, who most need it, while working closely with leading larger companies as key sources of expertise, resources, experience of best practice, and, as major customers, definers of requirements a collaborative approach is essential in this area: two major companies have already offered to support and pilot a triangular approach involving themselves, some of their suppliers and a research institute or university. Project priorities are Increasing training and awareness, in particular: preparing and disseminating good case studies promoting the benefits of clean design developing courses, materials, tools for training practising designers developing management methodologies for cross-functional teams, including facilitation techniques Developing and/or improving data and support for decision-making, in particular: simple design tools for SMEs simple life cycle analysis methods and improved data quality and formats improving the accessibility of tools and data for SMEs e.g. through networked "information centres" identification of and provision of sources of expert help Increasing the availability of technology/encouraging innovation, in particular: identification of needs and opportunities for innovation in reverse logistics technology developing of after markets for recycled products and materials improving the quality of remanufactured products and recycled materials for specific sectors or products, research into removing toxic or other problem materials applying clean design principles to specific new products developing management methodologies to stimulate innovation for specific sectors, identification of and research into opportunities for major breakthroughs towards sustainable products and services A range of other project areas are identified which support or relate to the above. The project areas defined at this stage are still generalised. Their scope will depend on evaluating implementation options, or specific proposals, against budgeting and other criteria. In a number of cases, more detailed requirements will arise out of initial scoping and feasibility studies or, for collaborative research, the requirements of the parties involved. 1.0 INTRODUCTION 1.1 Purpose The purpose of this report is to assist EPSRC (the Engineering and Physical Science Research Council) in identifying the research agenda and issues in relation to clean design (eco-design), that is the systematic incorporation of environmental life cycle considerations into product design. It describes a study carried out by The Centre for Sustainable Design during October - December 1996, specific objectives of which were to: Provide a clear and succinct research agenda for clean product design in the UK - with particular reference to incorporation of environmental factors into product design Highlight critical generic success factors and obstacles (key objectives) in relation to: incorporation of environmental factors into product design managing the clean design process Indicate the key clean design issues relevant to development of the research agenda for both EPSRC and ESRC: Strategic: key 'big' issues Tactical: prioritised hierarchy of projects Operational: specific projects 1.2 Definitions The term 'clean (product) design' is used throughout this document for consistency with EPSRC's former Clean Technology Programme heading. More commonly used terms for clean design are 'eco-design' (Europe) and 'design for the environment' (North America). All terms refer to the process of systematic incorporation of environmental life cycle considerations into product design. Clean/eco-designed products should be distinguished from 'green products' which are niche market products with improved performance (actual or claimed) in relation to one or more environmental attributes, but where no systematic incorporation of life cycle environmental factors has taken place. Clean design should also be distinguished from 'sustainable product design' in which products are designed to contribute to socially and economically as well as environmentally sustainable development; also from 'environmental technology', a broad term especially applied to the market for products or services addressing environmental problems. Another term used in this area is 'life cycle assessment'. This is the analysis of the environmental impacts of a product from extraction of raw materials to product manufacture, use and disposal of wastes. It provides an analytical basis for clean design but is not in itself a design process. The term "design" is used in its widest sense of all management as well as technical decisions relating to the specification, planning and development of products, not just the technical process of detailed design by engineering and other designers. To adopt a narrower definition would exclude most companies and sectors in product supply chains which do not carry out product design in the narrower sense, but which have an important influence on design. It would also exclude the various non-design functions in organisations, who also have an important influence. 'Clean technology' is a general term for technology designed to reduce or eliminate pollution and waste at source, rather than through more costly "end-of-pipe" solutions. It can be applied to products but it is more commonly applied to processes. It should be considered that while 'clean' technology is a satisfactory term in relation to manufacturing processes, where the aim is to prevent process pollution and waste, the term 'clean' is less satisfactory for product design. The whole life cycle impacts of a product may include pollution and waste, but may also include problems of depletion of non-renewable resources and damage to ecosystems and species. Clean design is accordingly too narrow a term to encompass the full range of environmental issues. 1.3 Scope This document is intended to be a strategic document to provide guidance in decision making. It is not intended to be a detailed survey or detailed study of every issue. The focus is on key issues. The case studies and examples are used to illustrate specific or general points. They are representative as examples but not in any statistical sense. In considering success factors and obstacles to applying clean design, external factors are considered as well as factors internal to firms, since both factors are critical to determining whether incorporation of environmental considerations actually results in improved product environmental performance. The latter is the aim in applying clean design, and measure of its effectiveness, not applying it as an end in itself. 1.4 Methodology General issues in relation to EPSRC sectors were reviewed (Annex 3) and some company cases were examined in a little more detail (Annex 4). A variety of information sources including published reports and articles, survey data, conference proceedings and discussions, telephone interviews with companies and individual experts, and some face to face interviews (see Annex 2 for list of individuals and companies; Annex 1 for references). Companies were asked about current levels of clean / eco-design and how it is managed in their company. All interviewees were asked for their views on success factors and obstacles and needs for research and development. Companies interviewed were selected on the basis of prior knowledge, that they were amongst the few companies active in this area. As leaders, it was considered they would be able to contribute usefully to the study. They were chosen as being reasonably representative examples of their sector in relation to product or services. That they are nearly all large companies reflects the fact that clean design activity outside of large firms is still rare. It was not within the scope and time-scale of the work, nor considered particularly useful, to examine every sub-sector within the broad EPSRC sector categories. In most sectors, clean product design is, at least for the time being, not an issue compared to the environmental impact of processes and operations. The four more detailed cases illustrate some examples from some sectors where clean design is occurring and where there are lessons for wider research and application. 1.5 Structure of the Report Findings in relation to key issues are summarised in Section 2.0. Their implications for strategic options are discussed in Section 3.0 and form a basis for project options set out in Section 4.0. 2.0 FINDINGS 2.1 Introduction The findings on key issues relate to the following questions: What at the benefits ? for society / the environment for companies i.e. is clean design an appropriate area for research? What is the current level of activity ? does it / should it need to increase? what research would help to stimulate activity? How is clean design managed and how can it be enabled? What are the success factors (internal and external)? what the conditions for effective clean design and improvement in product environmental performance? what research would contribute to successful application in companies? What are the obstacles (internal and external)? what are the obstacles in relation to drivers, infrastructure, external institutions and within firms? what research would help overcome these obstacles? 2.2Benefits of Clean Design Potential benefits are where applicable, now or in the future: For society / the environment improved efficiency in use of materials and energy (economic as well as environmental benefits) reduced life cycle impacts on the environment associated with production, use and disposal (possible) progress towards a sustainable society if the process leads towards high levels of innovation and sustainable product design a factor in improving the competitiveness of industry (national economic, employment and other benefits) For companies (where applicable), more efficient compliance with regulations and market demands (compared with a reactive approach involving expensive changes later) cost savings (where materials or other efficiencies can be achieved in the production / operational process) improved competitiveness from value to customers (e.g. product performance materials / energy savings ability to meet environmental requirements of consumer and / or corporate customers, including in the latter case to obtain ISO 14001 or EMAS, the international and European standards for environmental management systems At present there is growing but still relatively little case information on benefits achieved in order to demonstrate the benefits and help to better promote the subject to companies, and for environmental or other interested functions to 'sell' the idea internally. Where case information is available it is mainly qualitative. There is little quantitative information on financial benefits, especially on sales and marketing benefits, or objective measurement of improvement in product environmental performance over its life cycle - the primary objective of clean design. Measurement tends to be limited to a few highly specific areas e.g. reduced disassembly time for specific products. Nevertheless, most of the manufacturing companies spoken to could identify, or believed it was possible to identify, materials, energy and waste costs and other savings in their production processes. More difficult to quantify is evidence of marketing benefits, especially customer value. Recent work by the Open University (14) provides some interesting information on such benefits, although based on a small sample. For example, half of the medium sized companies reported that their "green" products were more commercially successful than the ones they replaced, and for firms exporting to environmentally sensitive markets, product environmental attributes are crucial to success. The strategy of leading companies in relation to clean design is not so much based on its leading to extra sales and market advantage, but rather on the belief that not practising it will lead, especially in the years ahead, to competitive disadvantage by being shut out of markets. Implications for Research The lack of case study information and performance improvement data represents an important obstacle to the promotion and application of clean design, and is an important area for research. 2.3 Clean Design Activity Levels Clean design is a new activity. Even amongst leading multinationals there are few companies which have been practising it more than 3 - 5 years (2). Current levels of activity are limited. The focus of environmental concern and management, where it exists, is on the environmental effects of manufacturing processes or operations, rather than consideration of the life cycle impacts of products. Where product environmental considerations and benefits have been identified, these are often the result of post-hoc rationalisation rather than deliberate design, and/or relate to one or more environmental attributes rather than full life cycle considerations. Companies do not typically set out to produce a greener or cleaner product (14). They aim to produce a product which will perform better, create a new market, increase or maintain market share, or satisfy market demands or regulatory pressures i.e. environmental factors are taken into account in pursuing commercial aims. Clean design activity is, with a few exceptions: Highly sector specific: there are few examples outside of motor vehicles, consumer electronics, telecommunications, and certain general consumer products Concentrated on: larger companies, mainly multinationals (rare among SME's) manufacturers of equipment (limited among service companies and primary material processors) foreign based companies (relatively few UK based companies) certain overseas countries e.g. Netherlands, Germany, USA a few research institutes and universities e.g. Delft Amongst the EPSRC sectors, levels of clean design fall into three basic categories: category 1 (considerable activity), category 2 (some activity) and category 3 (little or no activity). Category 1 sectors are communications, electronics and IT and some subsections of manufacturing, especially the motor industry and certain high volume consumer goods e.g. detergents Category 2 sectors are chemicals, construction, certain sub-sectors of engineering/manufacturing (e.g. furniture, textiles, medical equipment) and pharmaceuticals. Aerospace, energy, finance, retail, scientific instrumentation and transport fall into category 3. Drivers for category 3 sectors are relatively strong (see 2.4) and leading companies are widely adopting clean design approaches, covering life cycle environmental issues. Drivers for categories 2 and 3 are progressively weaker, and activities mainly relate to specific products for which there is a specific issue, or to individual companies acting form a position of responsibility. The three categories are generalisations for the position now. They do not imply that there are not exceptional companies which might be much more active than the sector average, nor that the situation will not change in future. They also do not imply that companies in categories 2 and 3 are not actively considering the environment, but rather that they are more focused on the impacts of their processes or operations, or on specific issues, than on design taking account of whole life cycle impacts of their products or services. Certain category 2 sectors or sub-sectors could arguably be placed in category 1, for example the pharmaceuticals sector, where leading companies are active in life cycle assessment. The sector is placed in category 2 as LCA has been mainly applied to packaging and little to products overall. Issues for various sectors are further outlined in Annex 3. Implications for Research If considered worthwhile, research needs to be targeted in the short term towards basic support for initiating activity, rather than sophisticated approaches, and on active or emerging sectors rather than on all sectors initially. Sector coverage can be widened in anticipation of activity increases 2.4Drivers and Prospects for Change Clean design is unlikely to be applied without strong drivers generating the impetus for it. Key drivers are: responsibility environmental concerns (transmitted through regulatory or market pressures) market pressures cost and other business pressures / incentives These are summarised as follows: Responsibility A common feature among most of the leaders in the field is some level of commitment to environmentally responsible behaviour and performance improvement i.e. they were already environmental leaders before initiating clean design. While other pressures are a factor, they would probably be active regardless of these. The leaders recognise clean design as an important emerging issue and aim to anticipate and stay ahead rather than simply react to future pressures. Environmental Concern The focus of public and regulatory environmental concern has historically been pollution and waste from industrial processes rather than the impacts of products. There have been a number of exceptions where the focus has been on product life cycle impacts. Some specific environmental concerns have led to wider consideration of life cycle aspects e.g. the tropical hardwood issue has helped to stimulate environmental thinking in the furniture industry ( see case study 3 on Wilkhahn). Various concerns have led to some examples of specific product focus in the chemicals industry e.g. CFC's and end of life problems with PVC, polyurethane (see case study 1 on ICI) and other plastics. Some chemical companies especially Dow (7) are beginning to shift to a clean (or eco-efficient) design rather than process focus although most are still in the latter phase. The strongest pressure for clean design has arisen from "end of life" waste problems relating to shortage of landfill and/or incineration capacity in some countries or areas, or pollution and other problems. For this reason clean design is concentrated on high volume consumer goods e.g. consumer electronics, motor vehicles, packaged goods and other products. One reason for the Netherlands taking a lead is its shortage of landfill capacity. The European Directive on Priority Waste Streams has identified problematical wastes by virtue of difficulties in relation to volume or toxicity, while national governments are introducing landfill taxes and other measures to discourage waste. In the medium to longer term, however, we are likely to see increased concern regarding sustainable development issues. In order to achieve the necessary increases by a factor of 10-20 in materials and energy efficiency (7) there will be increasing pressure for innovation in design. Regulations Regulation is a strong driver for business to act. However, regulations are limited in relation to products compared with processes. Some exceptions relating to product use are design for vehicle emissions control and elimination of CFCs. Life cycle impacts are difficult to regulate, especially the supply chain impacts of materials. In a few cases there are codes e.g. in relation to sourcing of hardwoods, but there is no sanction yet for non-compliance. Exceptions in relation to product regulations relate to emerging packaging regulations affecting a range of industries but especially manufacturers and suppliers of consumer products. Various major companies have applied life cycle considerations, mainly to packaging but are starting to consider products as well (e.g. SmithKline Beecham (6)) while some now routinely apply LCA to all products (e.g. Procter & Gamble (16)). The other main area of emerging regulation is in relation to product responsibility. So far this is mainly affecting the consumer electronics, computer and related industries but the issue could become of wider concern. The issue is not confined to high volume consumer goods. For example, where products must be disposed of expensively as hazardous waste, as with disposable medical equipment and materials, there is growing interest in environmental considerations (17). Market Pressures Given the limited scope for product environmental regulation, the main potential business impetus is market demand, either from retail or corporate customers. However, consumer demand for 'green' products is generally weak outside of very few countries such as Germany. Companies' experience is that customers are not prepared to trade off performance or pay more. Few companies are actively marketing environmental improvements, although for some products environmental performance may be an overt feature through an energy label or eco-label. Energy labelling schemes have been a moderate success, although probably more for saving money for the customer rather than environmental reasons. So far eco-labelling has had limited success. Only one of the companies spoken to referred to market advantage gained - Hewlett Packard (see case study 4) gained prestige and advantage from being a leader in energy starring its products, when President Clinton ruled that US government departments could only purchase energy starred computer equipment. Although market pressures are generally weak, there is nevertheless a broad consensus among observers that we are likely to see another wave of public environmental concern which may increase demand for improved product environmental performance. However it is pressure from corporate rather than retail customers that is potentially the strongest driver for clean design. In the electronics sector for example, major companies active in clean design are already setting environmental requirements for suppliers. This pressure will increase, especially on SMEs, as more companies gain ISO 14001 (or EMAS) which specifically requires holders to identify and act on significant planned environmental aspects over which the company has control or influence. ISO standards on life cycle assessment and eco-labelling are also planned and these will reinforce pressures for clean design. There is considerable movement towards ISO 14001 by certain sectors and countries, for example electronics companies in the Far East which see it as necessary to compete in international markets. There is also considerable activity in the motor industry. For example, Ford has committed to gaining the standard for all its plants world-wide by the end of year 2000. BMW has also recently informed its major suppliers that they will be required to gain ISO 14001 by year 2000. Adoption of environmental standards by major companies will be an added driver for clean design internally and along their supply chains. Cost and other Business Drivers Even in the absence of strong regulatory and market drivers, there are continuing pressures to reduce materials and energy costs in production, and to "add value" to customers, e.g. by saving energy costs in use and end of life disposal costs. For these reasons it can be said that some form of clean design is widely applied although it cannot be called clean design in the sense of systematic consideration of environmental implications. Furthermore, without a systematic approach, impacts or problems can be pushed elsewhere in the supply chain, or require costly changes later. Besides ongoing materials and energy costs incentives for clean design we are likely to see increasing use of market mechanisms and fiscal incentives as a way of addressing environmental problems, e.g. the landfill tax. Such incentives will provide an additional impetus for clean design. Implications for research While currently a limited activity, the above findings point to a number of factors which will cause clean design to grow in importance in the year ahead. Research should be aimed at anticipating change and preparing companies to respond to the challenge, as well as at dealing with immediate problems. 2.5 Management of Clean Design It is clear from the discussion so far that clean design is unlikely to take place without strong business drivers and recognition of opportunities as well as threats. The decision to apply it is a business issue relating to external considerations. It is also clear from the research that clean design is also a management issue rather than purely a technical issue. Even where recognised as a business issue within a company there is unlikely to be a timely and effective response to external drivers without effective management of the design process. To be effectively incorporated into business and design decisions, environmental criteria, like any other performance criteria, need to be specified, performance objectives and targets set, responsibilities defined, resources allocated, teams organised, personnel trained, procedures followed and performance monitored and reviewed. To avoid costly changes later, early incorporation from the conceptual through to the development stage is important. For designers to be aware of customer needs, and for customers to be made aware of environmental attributes, good two-way communications is needed through sales and marketing to other business functions and between them. Since a range of functions are involved in decisions which relate to product design, a cross functional team approach is essential, backed by senior management commitment. Addressing cross functional issues is never easy , especially where some parties may not see the benefits. Even the leaders in the field mentioned the difficulty of gaining interest from, and communications with sales and marketing personnel (see Obstacles, Section 2.7). The Hewlett Packard case illustrates an effective and potentially widely applicable approach to managing the design process which, although fairly new, aims to overcome some of the difficulties. Much of the management task lies in communications, awareness and training. Where these are effective, the technical process of clean design can be successfully implemented. Without these, it is unlikely to happen or be effective. Awareness is needed for all relevant functions, not just designers, although designers need relatively more. Since, however, it is not be cost effective or practical within companies to train all designers to the same level of environmental knowledge, one approach (e.g. by Lucas) is to train one design team member (the eco-design champion or representative) to a higher level than other members, to be a source of information and advice. Except for the leading companies, however, there is little evidence of appropriate management approaches, and the necessary basic levels of training and awareness. Even among the leaders there is some way to go towards well established clean design processes. Outside of companies, there are wider management issues which determine whether otherwise effective implementation of clean design within firms leads to actual improved product environmental performance. These are considered in Sections 2.6 and 2.7. Implications for Research Research should firmly relate to business priorities and management context. The primary need is for basic training and awareness for designers and other functions . 2.6 Success Factors Success factors, or factors which are likely to result in the successful implementation of clean design (i.e. systematic consideration resulting in actual improvement in life cycle performance not just successfully carrying out the design process as an end it itself) are: External to firms strong business drivers availability of technology effective institutional arrangements physical infrastructure co-operation support for decision making Within firms commitment appropriate organisational culture / structure competence in applying clean design considerations managed approaches EXTERNAL Strong Business Drivers Without these, as discussed above, clean design is unlikely to be carried out or to be successful. Availability of Technology Availability of technology is clearly an important success factor especially where a high level of innovation is necessary to address a problem, e.g. availability of substitutes, materials or radically new communications technologies rendering old 'dirty' technologies obsolete. For specific problems, e.g. disassembly and recycling, availability of reverse logistics technology increases the prospects for success. Effective Institutional Arrangements These apply where industry-wide solutions are required to address problems. They involve economic and organisational arrangements for applying regulations and market incentives. Examples include landfill taxes to discourage waste and imposition of levies or other arrangements for paying for infrastructure. For example, design for recyclability cannot be said to be effective or improve product performance if, because of lack of incentive for other action, it is simply dumped. In relation to end of life, arrangements need to be in place as appropriate for reconditioning, disassembly and recycling, including information links with potential users of unwanted materials and equipment (e.g. waste exchange links). Co-operation Co-operation between companies is important, not only in achieving industry-wide or sector solutions to common problems, but, through a partnership approach, customers and suppliers working together to address life cycle problems. A key feature of clean design is that while all companies have life cycle impacts, most can only exert control at their point in the life cycle. To close loops and avoid problems being passed on, co-operation is needed. Leading companies in clean design recognise this and are increasingly working with suppliers. Since individual companies and suppliers can only deal with single links, government intervention might be needed to deal with whole supply chain issues. Co-operation can also be a success factor in researching into problems, e.g. between companies or between companies and research institutes / universities. For example, such co-operation is particularly well developed in the Netherlands. Data and Support for Decision Making Good life cycle data and tools, including guides, decision software and training tools are important to assist decision makers in companies. While some large companies generate these internally, most will be reliant upon external sources. A variety of levels of sophistication are needed, appropriate to the organisation, task and user knowledge / function. Other support can also be important to smaller firms lacking resources, including easy access to expert help. WITHIN COMPANIES Commitment Within firms a pre-requisite for successful clean design is commitment to improvement of company environmental performance, e.g. as manifested in the various elements of environmental management (as set out in ISO 14001): environmental policy and clear objectives and targets for improvement, specifically applied to products appropriate organisational structures and environmental responsibilities for all management functions according to ability to influence environmental performance appropriate training and awareness for management and staff at all levels and across all functions, especially but not only the design function procedures and guidelines for implementation monitoring and measurement of improvement If these elements are in place and the system is working, the application of environmental considerations at the design stage should follow. In an accredited system it will be a requirement for certification. Appropriate Organisational Culture / Structure Clean design is most likely to be successfully applied in companies with good levels of internal communication and practising cross functional team approaches to problem solution and innovation; also where product development champions operate as environmental facilitators and are appropriately trained. Competence To make effective decisions, decision-makers need appropriate levels of awareness and training depending on their task, role and complexity of the decision. Training and other support needs to be available. Managed Approach Within the framework of business planning and environmental management, a disciplined management approach is needed involving establishing objectives, targets, plans, organisation, and procedures and methodologies, and review. This helps to ensure that clean design is fully integrated into business planning and decisions. Implications for Research Some general implications are: Factors external to firms need to be considered / addressed as well as within firms The factors for success relate to management and training as well as technical issues. Both need to be addressed - dealing with technical issues alone is unlikely to be effective Success stories that companies can relate to should form the basis of case studies for promoting wider application The key success factors form part of the basis for prioritising research i.e. priority should be greater where the presence of a factor (or its absence -see Obstacles below) is critical and research potentially highly beneficial 2.7 Obstacles For each of the success factors obstacles can be identified, e.g.: External to firms weak business drivers (generally) lack of effective institutional arrangements lack of availability of technology lack of physical infrastructure limited co-operation inadequacies in data and support for decision making Within firms lack of commitment inappropriate organisational cultures / structures lack of training / awareness lack of managed approach lack of resources EXTERNAL Weak Business Drivers The issue of generally weak business drivers has already been discussed. This is currently the strongest obstacle. If this were to change then solutions to many other problems would be likely to follow, e.g. impetus for technical solutions and innovation, organisational change, training etc. Lack of Availability of Technology In many cases lack of availability of new technology including substitute materials is an obstacle to innovation; as is the availability of cost effective technology for dealing with some products / materials at end of life (e.g. disassembly technology). Lack of Institutional Arrangements Logistical and institutional problems have hampered efforts to increase packaging recycling so that much recyclable material continues to go to waste. Such difficulties are a disincentive for clean design. Progress is now being made within the European Union on the imposition of packaging levies and also in relation to arrangements for electronic goods, computers and similar equipment. However, it will take time for such arrangements to become established and work effectively to encourage clean design. Lack of Physical Infrastructure Closely related to institutional arrangements (and economics) is the lack of physical infrastructure for reverse cycle activities, e.g. collection facilities for consumer electronics goods and computers. Limited Co-operation Outside of a few sectors such as the electronics industry which has set up its own working groups, there is still limited co-operation within sectors on this issue and limited supply chain co-operation on an industry - wide basis. Most trade associations have done little to address the broader implications of environmental issues for their members, and fewer still the product design implications (mainly those affected by packaging regulations seeking to oppose them). There has been limited sharing of information, especially on benefits, outside of a few companies who have publicised their activities. Within the UK, research has been limited and apart from a few universities and other centres, limited industry / research co-operation. Supplier / customer partnership co-operation is taking place on this issue but only in a few cases in the UK, e.g. BT is developing specification support for its supplies. Inadequacies in Data and Support While much life cycle information is adequate for many purposes much is not adequate or not readily available. Often it is too aggregated (e.g. an average for a sector rather than specific for a supplier) or its quality / reliability and assumptions are not stated. There is a lack of common formats for such data. There is a proliferation of tools and software support but most are for life cycle analysis rather than design and are often too sophisticated or impractical, rather than aimed at the range of functions which make design decisions. A general criticism made by several companies, was that a lot of the work in this aspect of clean design is too academic and ethereal and not especially useful to them. A fundamental difficulty with life cycle analysis is that most companies cannot afford the time and cost of full LCA exercises. Abridged approaches have been developed to address this problem, but there is still a lack of simple design tools, although developments are taking place. Availability of (and demand for) training support is limited. For smaller firms there is a lack of easily accessible external help and support on this issue. Lack of Commitment Within the business community as a whole, especially in the UK, there is still a limited and ambivalent attitude to environmental management, and poor understanding of the issues and benefits. Often this is a result of lack of awareness. Nevertheless, this situation is gradually changing and is likely to continue as regulations and market pressures increase, especially if there are strong knock-on effects from companies implementing ISO 14001. Inappropriate Organisational Cultures / Structures Effective clean design requires a high level of cross functional communication and co-operation, things which are often absent or limited in highly departmentalised organisations. A recent book (10 ) indicated that in the UK there is poor communication between environmental managers and product development and marketing / sales; also that product planning and marketing / sales are at the bottom of most environmental managers' responsibilities. Many functions barely speak to each other while corporate departments, even within the same function, can be remote and seek to control rather than provide support and disseminate information. Customer requirements often do not reach designers, especially if filtered by sales personnel who may not see any market opportunity. Such communications barriers can be a major obstacle even to minor improvements. They are an even greater barrier to innovation, especially in companies which think in the short term rather than strategically. A particular difficulty is managing clean design in the face of continually changing business priorities, uncertainties and organisational changes. Organisational and individual inertia are other organisational factors which can be strong obstacles to any form of change and apply in this case(2,3). Lack of Training and Awareness A general lack of environmental training and awareness within companies is an obstacle, not just amongst designers but amongst all management and technical functions involved in design decision, especially marketing and product management. Within the design function itself, the general lack of awareness is combined with often limited levels of continuing professional development and wide variation in levels of professional education and training. Lack of Managed Approach Where practical at all, projects appear to be often ad-hoc or specific local initiatives, rather than part of a systematic corporate approach with clear objectives in terms of improved product environmental performance. This reflects the newness of the area. Lack of Resources A general problem, especially in SMEs is lack of resources, whether lack of time, personnel or skills, or lack of finance for investment in R&D. However, in view of the potential benefits, and the fact that design and development must be carried out anyway, any additional "costs" of clean design are arguably more perceived than actual. Nevertheless, few firms have the time or resources for long and costly LCAs. Implications for Research The implications for priorities are as for Section 2.6. Research should seek to better understand and address a range of obstacles, within and external to firms, management as well as technological, in order to help stimulate clean design activity. Where research is outside the scope of the scope of EPSRC / ESRC it should nevertheless include monitoring and taking account of these obstacles and associated issues. Research should be focused on practical issues and especially simple solutions for SMEs. 3.0 STRATEGIC OPTIONS 3.1 Introduction Recognising the general remits of, and constraints on funding by EPSRC and ESRC, there are a number of broad strategic options relating to the following: Relative level of funding little or none to high priority short term vs. longer term clean product vs. other environmental research, e.g. on processes technical vs. management issues spread of projects vs. concentration Objectives advancing knowledge / best practice competitiveness of UK industry achieve environmental benefits from clean design encouraging incremental improvements or innovation Design definition narrow or wider definition Environmental issue focus emphasis on overall product performance (with environmental benefits incidental rather than a primary objective) materials / energy saving problems of dealing with products already in the market vs. new products end of life aspects (e.g. disassembly, remanufacture, recycling, waste) whole life cycle aspects sustainable development issues Sector focus specific industry product sectors Vs wider sector coverage, e.g. across EPSRC sectors manufacturing Vs primary material and service sectors Company Vs wider issues focus on issues within companies, e.g. need for training research into external drivers, infrastructure issues (e.g., recycling infrastructure, technology, institutional arrangements), supply chain / company co-operation, information / tools and other support external technological Vs management / institutional issues Types of companies Larger Vs SMEs Within companies, relative focus on technical aspects of design (focus on designers, use of tools etc.) the design management process (covering all contributors to the design process Some of these options are clearly mutually exclusive, e.g. limited funding and researching a wide range of issues. Most are not mutually exclusive and many related, although to cover all areas would spread available resources too thinly. A balance must be sought therefore taking account of: available resources potential for specifying projects within the EPSRC / ESRC remits and research objectives for clean design prospects for successful / useful outcomes existing coverage of the subject area by EPSRC or other bodies 3.2 Relative Level of Funding The decision needs to be made whether research in this area is worth funding. It is outside the scope of this project to advise on the absolute or relative levels of funding compared to other research areas, environmental or non-environmental. There are various reasons why the emphasis on environmental research is likely to continue to be on processes and operations, including waste minimisation, rather than products, especially because of much greater regulatory pressures, this is the focus of environmental concern in most companies. Levels of clean product design activity are currently low and there is no immediate prospect of a rapid change. Clean design cannot be said to be a top priority issue in the short term, in the sense of there being a large unmet demand for clean design support. However, clean design is an important and worthwhile area of environmental activity for a number of reasons: Many life cycle impacts lie outside of and are often greater than manufacturing impacts (e.g. washing machines) so there are environmental benefits from considering these; furthermore, manufacturing impacts are often "built-in" at the product design stage We can expect an increased emphasis on products and life cycle impacts, e.g. resulting from: supply chain pressures from new standards market demands if there is a swing in public concern regulations affecting products, especially end of life impacts There are real business benefits to be gained in materials efficiency, and potential competitive advantages There are national/European competitive reasons e.g. Far Eastern countries and companies are investing heavily in this area In conclusion, clean design is a worthwhile area for funding although its relative priority is moderate now but likely to increase over time as the benefits become greater. Except for any research which leads to immediate savings in materials, in many areas benefits are likely to be medium to longer term rather than short term. Strategically too, the area is worth investing in, in anticipation and preparation for future need. A longer- term, strategic approach needs to be adopted to encourage innovation. There is, however, an immediate need for research to make progress now Regarding the balance between technical and management projects, these will be determined by the respective remits. Although most projects will be technical, the importance of setting a proper business and management context for them cannot be overstated. On the question of spread or concentration, budgeting constraints will partly influence what can be covered. All projects should be carefully evaluated on their merits. A "balanced portfolio" approach is more likely to be cost effective and beneficial than concentration on a few large projects. Whatever approach is adopted there should be a strong input from business to ensure it is properly directed and practical. 3.3 Objectives None of the general objectives listed are mutually exclusive and all can be deliberate or incidental benefits of research in this area. The broad objective of research in this area should be to encourage, support and facilitate clean design, not just to increase the level of clean design but to ensure its effectiveness in improving product environmental performance across its life cycle. In this way environmental benefits will be achieved. If these are effectively integrated with improvements in overall product performance, and there is market demand for these improvements, then business will benefit. Within the context of benefits and wider objectives, the objectives which "best fit" the remits of EPSRC and ESRC are advancing knowledge / best practice and encouraging innovation. In relation to advancing knowledge and best practice from where we are now (i.e. a situation of little activity and awareness in most companies), the main general need is for simple levels of support and development, rather than sophisticated approaches and research. A primary objective should be to increase application through training and awareness. In relation to incremental improvements or innovation, both approaches are needed and important. For many companies only incremental changes to existing products are immediately and practicable. This is especially so in larger companies with high levels of inertia and high volume products and markets. "Reaching for low hanging fruit" can help to get the clean design process started. If high factor improvements in eco-efficiency are to be achieved as a basis for sustainable development, then high levels of innovation will be needed. It is therefore recommended that innovation should be the strategic focus for research in this area. Benefits would be: Potential step-wise environmental improvements as well as business and economic potential from new products and service A potentially effective vehicle for further developing the partnership between EPSRC and ESRC e.g. EPSRC supporting research into new technology ESRC tracking the social and other changes during new technology, and the social and environmental consequences of new technology It would link well with the proposed emphasis on SMEs which are often better at innovation than larger companies The research focus should not be on SMEs alone. As leaders and key players in supply chain decisions it is important to involve larger companies. Much innovation also takes place in larger companies, especially in smaller division or subsidiaries as larger companies are increasingly broken down or decentralised. While an important area of research which could justify separate budgeting, projects could also be 'nested' within existing environment-related programmes because of the wide range of applications and potential benefits. In conclusion, it is recommended that there be an initial focus on getting companies started by piloting clean design, and providing ongoing support for incremental improvements. However, the strategic focus should be on innovation, especially in helping companies to look for technical breakthroughs. 3.4 'Design' Definition The terms clean design / "design for the environment" can be used in the narrower sense of the technical design process, as carried out by designers. They may also be used in the wider sense of decision - making on matters relating to products and to their specification, design and development. The latter wider definition is suggested. Without devaluing or excluding the technical design process in any way: A wider definition would help to encourage involvement by non-design functions who may not consider that design has anything to do with them Wider involvement is essential since it tends to be the marketing, environmental and other functions rather than designers who drive clean design where it does occur Wider definition would help to facilitate consideration in sectors which do not design products (e.g. primary producers, services) and which have a major influence by virtue of product specification or material formulations and production 3.5 Environmental Issues Closely related to 3.3 is the question of what environmental issues to cover. This is important in relation to objectives for environmental benefits and product environmental performance. One option is to play down environmental issues and treat them as an integral, not separate, part of good design. This involves focusing on total product performance efficiency on the grounds that if this is achieved improved environmental performance should follow. Strategically, this would require an emphasis on those issues relating to saving materials / energy costs for producers and add value to customers. The positive side is that this approach is more likely to be acceptable and successful in business. The downside is that the focus of environmental issues may be narrow and some key issues ignored. It nevertheless provides a good starting point for environmental consideration. A focus on "end of life" issues is also relevant in being a subject of immediate concern to many businesses. While life cycle aspects and sustainable development issues are not of immediate concern to most businesses now, but could become increasingly so as specific concerns arise. In conclusion, an emphasis on materials / energy saving and end of life aspects is recommended in the short-term and as an ongoing issue. For the medium term there will be potentially an increasing need for support on wider life cycle and sustainable development issues. 3.6 Sector Focus The sector focus needs to be decided. Clean design activity in its narrowest sense is presently highly sector- specific, mainly limited to the electronics and other sectors producing consumer goods affected by producer responsibility, labelling, packaging etc. regulations and / or market pressures. Gradual expansion into other sectors, e.g. textiles is occurring but this is still limited. In the short term there is no particular justification for broader product or service sector focus beyond manufacturing companies, or their suppliers, involved in the already active sectors. A key issue is enabling SMEs to respond to customer demands. In the medium term we are likely to see more sectors interested, e.g. in market conditions change and standards of factors push environmental pressures down the supply chain. 3.7 Company Vs Wider Issues Should funding focus on company (internal) or wider (external) issues. No level of research into or support for companies is likely to be useful in the absence of strong market or regulatory drivers and effective reverse logistics. It is outside the scope of EPSRC / ESRC to directly influence the drivers, however an essential requirement is to track them. In some cases market obstacles may be eased by better customer information and awareness. In some cases, a disincentive to clean design can be practical problems in re-manufacturing, recycling, infrastructure and technology. This all lends themselves to useful research into technology and institutional arrangements including optimising levies or other measures. Interfacing with companies' needs is the availability of information and decision support tools. Again a useful area for research, although to a large extent the problem is one of lack of simple accessible tools and information, rather than any general lack. There is also a need for improved company / supplier co-operation, especially on life cycle aspects of supply chains. Without addressing wider issues, companies will have difficulty applying clean design effectively without the wider issues also being addressed, so the research agenda should include or at least take account of these. Nevertheless, the focus should be on helping companies implement clean design since this is where decisions are made. There is a particular need to identify who is involved in design decisions and appropriate strategies for training/awareness e.g. through educational curricula and professional bodies. 3.8 Type of Company Clean design is presently almost exclusively the preserve of larger companies. Research involving larger companies can be useful for: Developing and testing approaches which may be more widely applicable as they are, or as modified forms for other sectors, or simpler forms for smaller companies Approaches involving supply chain or inter-sector co-operation Developing and / or improving material and other LCA information Research projects which might directly assist larger companies should be included for a range of reasons, including access to best practice, resources and other benefits. Strategically, however, it is suggested that larger companies should generally be a vehicle rather than a primary target for research. In general they have in- house resources to apply clean design where there is business benefit. It is recommended that the primary focus should be on SMEs on the grounds that: Most companies are SMEs SMEs have most need for help (lack of resources, knowledge of where to get help, how to respond to large customer requirements) There is a need to target awareness and training at appropriate types of organisation and levels of knowledge, and through appropriate channels e.g. the Federation of Small Businesses, Design Councillors. 3.9 Technical Vs Management Issues (within companies) While technical and management issues are related and often overlap, decisions need to be made on the balance between these issues both within and between the EPSRC and ESRC programmes (recognising their primary focus). For example, in the case of EPSRC, one option would be to focus on purely technical research to help designers to implement clean design, e.g. research into improving information, developing and / or improving tools and other support, or research into innovative solutions. Alternatively it could research / develop approaches that combine management and technical considerations, e.g. decision making approaches and information support for multi-functional teams. In considering success factors and obstacles to clean design it is clear that (given appropriate external conditions) to be effective it must be a management decision making process, within an environmental management context, aimed at improving environmental life cycle performance alongside overall product performance. The technical design process is one component of this. Therefore, while there is a need for technical research, a strong management context and focus is recommended on these grounds: Without a strong business and management foundation, research into technical processes alone or research aimed at designers alone is unlikely to be effective, and encourage the idea that the clean design process is an end in itself A wide design focus (3.4) implies a management approach Various functions are, or should be involved in design decisions and make decisions; many decisions are not made by designers Other functions are involved in decisions before designers and early consideration is essential for effectiveness and avoidance of costly late decisions Including a business and management context to EPSRC projects will help foster a partnership approach with ESRC, besides better focusing projects on benefits and enhancing their prospects for success Obstacles to implementation of clean design are less in lack of tools and information (although there are some problems with adequacy, there is a proliferation of both) than in their accessibility and sufficient knowledge to use them. At least in the short term, the main need and focus should be on simple accessible information, and simple decision - making methods and training aimed at multifunctional teams with generally limited environmental knowledge. For situations where more sophisticated approaches are needed, a variety of tools is available. Besides further development of existing products, similar considerations apply to innovation where a range of functions, not just designers, are likely to be involved for the process to be successful - although there will be also a need for purely technical research. 3.10 Summary of Recommendations on Strategy a) Clean design is a worthwhile area for research funding, although its relative priority is likely to increase in future compared to now. In the short term, projects may be "nested" within existing EPSRC/ESRC programmes. b)Primary objectives should relate to improving product environmental performance through: advancing knowledge / best practice (tactical especially short term and ongoing) encouraging innovation (strategic objective with longer term benefits) c) 'Clean design' as a term should embrace wider decision making, not just the technical design process. d) In the short term the emphasis is likely to be on materials / energy saving and end of life aspects; in the medium term there should be increased emphasis on whole life cycle and sustainable development issues. e) In the short term the sector focus should be limited to those where there is already activity or emerging activity; others may be considered in future. f) External drivers and infrastructure issues should at least be monitored and may give rise to projects, e.g. in facilitating external support and information. The focus of research should be primarily on helping companies make effective decisions. g) Large companies should be targeted as vehicles for programmes and possible assistance, but the focus for help should be on SMEs. h) While there is an ongoing need for technical research, this should be carried out within a strong business and management context. 4.0 PROJECT OPTIONS AND PRIORITIES 4.1 Introduction From the preceding sections it is clear that the area of clean design is an emerging but important area of research, but that there is a range of strategic options and a wide range of potential project areas which could fall within the respective remits of EPSRC and ESRC. The success factors and obstacles described above provide a broad framework of research subject headings, covering: External to firms business drivers for clean design institutional arrangements (e.g. organisational and economic arrangements for recycling/take back) availability of technology* co-operation (supply chain, sector, industry) data and support for decision making* Within firms encouraging commitment (through environmental management) encouraging appropriate organisational approaches increasing training/awareness encouraging good management practice addressing resource constraints (especially in smaller firms) While there are many overlaps (and corresponding scope for co-operation) the broad areas where research could fall within the remit of EPSRC are starred, while the other areas could be appropriate for ESRC, except or training and awareness, and resource constraints, which could apply to both.. These broad headings, though all important issues, do not necessarily mean that projects should be invited or developed under each. Where there are no specific projects under wider issues, such as business drivers, such issues should, at least be considered, or tracked, monitored, and reviewed to ensure an effective context for projects that are decided on, and, as appropriate, form part of the aims or background to these projects. Projects in some areas may specifically help to address problems in others. For example, projects to improve data and support for decision making in smaller firms would need to consider or even specifically help to overcome financial and skill resource constraints in such firms Section 3.10 provided some recommendations on strategic focus, especially: advancing knowledge/best practice encouraging innovation helping companies, especially SMEs, to make effective decisions helping companies with immediate needs while also in responding to anticipated changes ensuring technical projects have a strong business focus and management context diversity of projects (if possible) rather than concentration of resources These provide specific general research objectives and additional evaluation criteria alongside general EPSRC/ESRC criteria. The project areas selected and the priorities will ultimately depend on the strategic focus and investment and other criteria discussed in Section 3. All of the subject areas will be potentially beneficial areas for research in addressing specific or general obstacles, encouraging clean design and achieving environmental and business benefits. Investment criteria will clearly be maximising benefits within budgetary constraints. Another consideration is optimising the contribution of universities or other research institutes, and the technical and/or resource feasibility of carrying out certain work. Because of the need for a strong business focus, work in this area will depend on effective collaboration with business. 4.2 Suggested General Priority Areas Training and awareness In view of the general lack of activity and lack of awareness and training, the first priority is to increase the general level of clean design activity through raising awareness of the benefits, and increasing training levels in applying clean design. This is a basic obstacle to activity now and a factor which will constrain effective application, and companies' competitiveness, as demand for clean products increases. The focus should be on helping SMEs as these constitute most companies (i.e. research and assistance would have wide potential benefits) and it is these companies which are least equipped to respond to demands for clean design (i.e. are most in need of help). A focus on training and awareness, and advancing best practice, fits well with EPSRC an ESRC remits, as well as being an area in which investment can be cost effective and be widely beneficial. Priority project areas covering training and awareness topics could include (but not exclusively): 1. Collection, preparation and promotion of good case studies on clean product design, emphasising the benefits, quantified where possible, and with which a wide range of companies can identify. 2. Development of courses, material and tools for training practising designers. 3. Development of training materials and management methodologies for other functions and cross functional teams involved in design decisions (based on cases studies and generic methodologies) 4. Incorporation of design into academic and professional education of engineers and designers. Also, in support of the above 5. Defining training needs. 6. Identifying and evaluating existing training provision. 7. Guidelines and promotion of courses/training support . 8. Training in "selling" the concept internally. 9. Training in facilitating the process (as for design team champions and product stewards). 10. How to reach the sales and marketing function. Data and support for decision making Closely related to training and awareness is the priority of improving the quality and availability of data and support, to enable appropriately trained individuals to make informed decisions. Much is already available but is of variable quality or not readily accessible , especially to SMEs. The challenge is to identify and disseminate appropriate data and methods and provide ongoing support, building on what has already been done rather than starting from scratch. Projects could include: 1. Development of simple clean design tools, including guidelines, checklists, software, especially for SMEs (including evaluation and improvement of existing approaches) and covering range of applications from the specific (e.g. design for disassembly) to the general (environmentally conscious design). 2. Development of simple LCA methodologies (including evaluation and improvement of existing methodologies). 3. Improving the quality of LCA data, e.g. development of consistent formats and assumptions; simplified data where this is sufficient; and development of improved data where major gaps are identified, weighting of priorities. 4. Improving the availability and accessibility of tools and data, especially to SMEs, e.g. through the Internet, perhaps by the development of "information centres" along the lines of those developed for internal use in larger companies. 5. Identification of sources of expert help and establishment of a network of support services, especially for SMEs. Also, in support of the above 6. Defining who makes design decisions and on what basis. 7. Managing complexity. 8. .Managing changing business priorities. 9. Appropriate organisational cultures and approaches for effective clean design. 10.Development of mechanisms for feeding back information from the customer to the designer. Increasing the availability of technology/encouraging innovation Encouraging and/or developing innovative solutions is of primary strategic importance for research, both for business to respond to the environmental challenges and opportunities ahead, and for society and the environment if we are to achieve the materials efficiency and other challenges posed by the issue of sustainable development. There are wide needs for research in this area and even a wide portfolio of technical projects could only cover a few areas. While specific technical projects could be included where considered worthwhile and feasible, it would be of wider benefit to encourage and facilitate innovation in industry. Needs for innovative technology apply both to products and services, and to technology for reverse logistics; the latter is especially needed both to deal with existing products creating current disposal problems, and to new products. Project areas could include: For existing products 1. Identification of needs and opportunities for innovation in reverse logistics technology, including for a particular key sector or product type, review of global best practice and technical developments in relation to disassembly, recycling, reuse, etc. 2. Research in specific promising areas of reverse logistics e.g. use of robots or assembly lines for disassembly of electronics products, development of chemical and other separation/ processing technologies . 3.Development of after markets (with information networks) for recycled products (including review of existing provision). 4.Improving the quality of remanufactured products and recycled materials. For new products 5.Identification of and research into specific problems for specific sectors, especially removing toxic or other problem materials e.g. for the electronics industry, lead in solder, solvents in coatings, arsenic compounds, problem batteries, plastics incompatibility, improving energy efficiency. 6.Application of clean design principles to specific products e.g. design of "intelligent" products containing life cycle information, and information on how to disassemble/recycle (a basic problem is being able to identify scrap plastic, for example). 7.Development of management methodologies to stimulate innovation. 8. For specific sectors, identification and research into opportunities for major breakthroughs in eco- efficiency i.e. 'dematerialisation' through a shift from product to service, or other means. And in support of these 9. Research into what customers want, considering industrial customers as well as consumers. 10.Monitoring of drivers in order to anticipate market developments. 4.3 Other Project Areas There is a range of other technical and management areas in which research would be useful. These may be product specific or generic problems. Review and development of optimal policy on infrastructure, levies and reverse logistics Examination of the clean design value chain, where most impacts occur in the supply chain, where there is most value from change, and who has most influence at that point in the chain Identifying costs and benefits of clean design Mechanisms for reaching SMEs (e.g. through corporate customers) Mechanisms for sector and industry co-operation 4.4 A Phased Approach All of the above project areas would be potentially useful and more could be identified now or emerge over time. The first priority is to make progress now in training, awareness and the other priority areas identified above, especially in assisting SMEs to respond to the needs of electronics or other major corporate customers for which clean design is a key issue. Medium to longer term or lower priority projects can be phased in later, or may emerge from the initial work, which should complement, not duplicate other work e.g. the DEEDS research. Phasing can also be applied to new approaches by piloting first in order to test and learn before applying more widely. 4.5 Collaboration Universities and other research institutes have potentially a great deal to contribute in this area in the way of research expertise and creative thinking. To apply this capability effectively to the needs of industry requires a collaborative approach rather than working in a vacuum. To help SMEs, the recommended focus for help, however, requires more than bilateral collaboration with SMEs, who often do not know what they want. It needs to be via a triangular relationship also involving major companies. Involving the latter as vehicles would have the advantages of more clearly focusing on their requirements as major customers and providing project resources and support - provided the large company benefited by enhancing their leadership position, and from their suppliers' improved performance. Two companies, BT and Motorola, have independently offered their support along these lines. It is suggested that a few companies are sounded out for their interest and one or two selected which can involve ten or so suppliers, and a suitable university/research centre brought on board. Project work would follow from initial brainstorming by the triangular team on needs and priorities. ANNEXES ANNEX 1 REFERENCES 1. Centre for Sustainable Design, The (1996). Managing Eco-Design: A Business Perspective. Conference Proceedings. 2. Centre for Sustainable Design, The (1996). Design for Environmental Survey of Fortune 500 Companies. Draft Report To be published). 3. Centre for Sustainable Design, The (1996). Environmental Issues, Design and the Electronics Sector: A Study of European and US Firms. 4. Centre for Sustainable Design, The (1996). Furniture, Design and the Environment. Seminar Proceedings. 5. Clift R. et al (1997 draft) An Introduction to Product Design and the Environment. Guidelines by The Centre for Environmental Strategy, University of Surrey, and The Environment Council 6. ENDS Report (April 1996). SmithKline Beecham. Integrating LCA into Packaging and Product Development. 7. ENDS Report (January 1996). Dow Europe and the Challenge of Eco-efficiency. 8. ENDS Report (November 1995). Dutch Develop "Eco-indicators" for Product Designers. 9. Environmental Business Magazine (October 1996). Packaging System Provides Waste Producers with New Food for Thought. 10. Fussler C, with James P (1996) Driving Eco-Innovation (London, Pitman Publishing) 11. Keoleian, G and Menerey D, University of Michigan (1993): Life Cycle Design Guidance Manual, Environmental Requirements and the Product System (Office of Research and Development, US Environmental Protection Agency, Cincinnati, Ohio) 12. LCA News November 1996. The SPOLD Format for Life Cycle Inventory Data. 13. Markovic V, and Hicks D, ICI (1996) Design For Chemical Recycling. Royal Society paper(draft) 14. McAloone TC and Evans S, Cranfield University (1996) Integrating Environmental Decisions into the Design Process. Proceedings 3rd International Seminar on Life Cycle Engineering. 15. Smith MT, Roy R, and Polter S (1996). The Commercial Impacts of Green Product Development. Open University Design Innovation Group. 16. Sweatman A and Simon M, Manchester Metropolitan University (1996): Proceedings, 3rd International Seminar on Life Cycle Engineering. 17. White PR, Procter &Gamble (1995). Sustainable Product Lifecycles. Engineering for Sustainable Development.Royal Academy of Engineering Conference, September 1995 18. Williams J (1996). Environmental Design of Medical Products. A Blueprint for Action. RSA Environmental Design Workshops. ANNEX 2 ACKNOWLEDGEMENTS Thanks are due to the following for their assistance: Companies B & QAlan Knight, Environmental Manager BTColin Dixon, Senior Quality Engineer Ford Motor CompanySteve Cautley, Environmental Co-ordinator UK and Ireland Halifax Building SocietyR P Shiller, Design Manager Hewlett PackardTom Davies, Director of Environmental Affairs IBMSteve Bushnell, UK Environmental Advisor ICIVanja Markovic, ICI Acrylics (former LCA Project Manager, ICI Polyurethanes) LucasEstelle Hooke, Researcher MotorolaBill McCartney, Director, Environment, Health and Safety Clare Pugh, Environment Manager National PowerSteve Adrian, Environmental Manager Procter & GamblePeter White, Environmental Manager Rank XeroxHugh Smith, Manager Environment, Health and Safety S C JohnsonDianna Montgomery, Environmental Manager SainsburyJayne Gilbert, Environmental Affairs SmithKline BeechamGary Parker, Head of Environmental Affairs Unit Wilkhahn UKHans-Peter Becker, Director ANNEX 2 cont. Individuals Dorothy McKenzieDirector, Dragon International Peter JamesAshridge Management Centre Tim McAloone Cranfield University Edwin DafchefskiEnvironmental Council Kieren MayersResearcher Christine HemmingMember SPOLD Working Group on LCA and Decision Support Tools (Society for the Promotion of Life Cycle Development) Beatrice OttoThe Bond Partnership, For the Design Council Susie EdwardsBuilding Research Establishment Gabrielle EdwardsDevelopment of the Environment Hannah CurtisManchester Metropolitan University Anne WhiteheadNational Centre for Business and Ecology, Salford ANNEX 3 SECTOR ISSUES The EPSRC (or other) sector categories can be classified into three types by general level of clean/ eco- design activity: Category 1: Considerable activity Category 2: Some activity Category 3: Little or no activity These are crude categories. Some sectors could arguably be placed in higher or lower categories, while there may be exceptional companies which fit higher categories. These categories do not imply a static position, but simply the present general situation which may change in future: A CATEGORY 1 (considerable activity) Sectors: The main active sectors are: Communications Electronics IT Some subsections of engineering / manufacturing, e.g. motor industry some household goods and other consumer products Activities: Most clean design activity is within the communications, electronics and IT sectors, while there is also considerable activity among the other sectors. General features are: Most active companies are large multi-nationals operating in many markets, including more environmentally conscious markets where there is demand for greener products in house resources and skills to manage the process development guidelines, etc. tend to have existing commitments to social and environmental responsibility (i.e. they would probably do this without regulatory or other pressures) concerned about public image, public pressures Affected by packaging, producer responsibility, other product waste / end of life and other environmental issues Major players in consumer markets (i.e. close to the consumer than primary materials suppliers or small suppliers to large companies directly involved in product design and manufacture (although increasingly buying in sub-assemblies, and while BT manufactures nothing, all are involved in product specification) In all cases, however, clean design is a relatively new activity over the past few years and approaches are still in the early stages of development. In those where clean design is established, it is formally integrated into the design process (e.g. Hewlett Packard see Case studies). Drivers and Issues The main general concerns driving clean design relate to end of life disposal and waste problems. Emerging regulations relating to packaging (affecting a range of industries and consumer products) and producer responsibility (especially affection the communications, electronics and IT industries).Within the motor industry, air emissions control (regulatory control) and fuel efficiency, besides end of life problems, are also drivers for clean design.. In this sector, there has been particular activity in design for disassembly and recycling. For example Ford has established guidelines for designers and has established a disassembly plant in Cologne which feeds back information to designers. There has been considerable co-operation by motor companies, for example in producing the International Dismantling Information System (IDIS), a pictorial system, for scrap companies, which identifies materials in all main vehicle types. The main problem material for the industry is plastics, especially in identifying off-cut scrap. The European Commission has identified priority waste streams for regulation or other policy solutions, including packaging, consumer electronics, vehicles, tyres and batteries. There are or will be considerable problems in relation to such products already in the market and downstream potential problems in relation to new design. Industry is expected under regulatory policy to contribute to solutions. This has led some sectors (e.g. electronics) to establish industry groups to address the problem, and some large companies, e.g. IBM to become actively involved in take back. In the case of packaging, levies will be imposed on various parties in the supply chain whose decisions contribute to packaging waste. Some wider pressures on business already exist, e.g. regulatory controls on processes, shareholder / investor concerns and the activities of pressure groups (e.g. regarding certain materials such as PVC). Most of the companies involved, e.g. NP, IBM, Sony, Rank Xerox and BT are large with established environmental policies. Corporate responsibility is the primary driver combined with potential for materials and energy saving in manufacture. Marketing benefits have yet to be attained in any major way. This situation may change as regulations and customer awareness increase and supply chain pressures increase, e.g. requirements of large companies more widely passed on to suppliers; also as companies increasingly gain ISO 14001 and EMAS it will focus attention on own and suppliers' products. Success Factors Even amongst the leading companies, clean design is a fairly new activity. Where it has been established, success factors have included existing commitment to environmental improvement and establishing a multi-functional approach to ensure early integration of environmental considerations into decision making. Also helpful have been the size and resources of the companies in order to generate in-house LCA data and guidelines / tools, and the existence of an environmental function to drive at. Obstacles The principle obstacle, even in otherwise successful implementation exercises has been to reach and involve the marketing and sales functions, essential for selling the benefits to customers, increasing customer awareness, and communications. Customer requirements, environmental personnel driving the process commonly experience difficulties in selling the concept to designers and in encouraging innovation - designers can be conservative and conservatism is often a feature of large companies with high levels of inertia. Even where large companies have incorporated environmental factors, success is still blocked by problems in relation to reverse logistics, e.g. recycling / recovery infrastructure and problems with markets for remanufactured goods or recycled materials. B CATEGORY 2 (some activity) Relevant sectors are: Chemicals Construction Engineering / manufacturing / process Pharmaceuticals Activity Levels All of these sectors have a range of environmental pressures on them although these generally relate mainly to manufacturing processes or operational activities which are inevitably the centre of attention. Chemicals The process focus is especially the case in the chemicals sector. Nevertheless some leading companies are increasingly giving attention to whole life aspects of products. Dow Chemicals has led the way by developing the eco-efficiency concept. One of the case studies illustrates a product by ICI which is the result of a clean design exercise. In general, however, clean design has related to specific products to which specific environmental issues apply, e.g. CFC replacements. Construction Most environmental attention in the construction sector relates to the impacts of construction projects and buildings or structures. As major users of energy, there has been increasing attention to design of buildings as a product. In considering the energy efficiency and impacts of buildings this has led to increasing consideration of the environmental impacts of buildings and building products in production use and disposal (considering in the latter case the problem of construction waste). There is now a growing amount of information for designers and examples of application to specific buildings. The BREEAM rating schemes for buildings partly consider lie cycle aspects In general, however, application is still relatively limited. Engineering / Manufacturing / Process There are pockets of activity of clean design or evidence of consideration in a number of sectors such as furniture, textiles and medical equipment, although not yet widespread in these sectors as a whole. The tropical hardwood first focused environmental attention on the furniture industry, but there are other issues such as materials use, and emissions from solvents and end of life waste. The case study on Wilkhahn illustrates some of the issues. Another sector where there is increasing consideration of life cycle issues is the textiles industry. There are concerns about the environmental impacts of cotton growing (heavy use of water and pesticides), energy use and pollution from textile production, natural and synthetics (including pesticide residues in wool), and waste at end of life. Some leading companies such as Levi Strauss are actively applying life cycle considerations to product specification. There some developments in the medical equipment sector because of the problems with clinical waste disposal (must be incinerated at high temperature) Pharmaceuticals The pharmaceuticals sector is placed in Category 2 since although there is considerable activity in relation to packaging (e.g. by SmithKline Beecham) there has been little attention to the pharmaceutical products themselves. Drivers and Issues Where clean design has been applied it has been driven by: Company environmental responsibility (this tends to be an important feature of leaders in the field) Regulations (applying to processes and impinging on product design), e.g. CFCs, solvents regulations affecting the chemicals industry solvents regulations affecting the furniture industry pesticide use residue and other factors effecting textiles waste / packaging regulations affecting chemicals (plastics) producers, medical equipment (problems of clinical waste) Market related pressures, e.g. tropical hardwood issue affecting construction and furniture building energy and environmental labelling schemes in various countries pressure group concerns over certain materials, e.g. PVC Further pressures could result, e.g. if there is wide adoption of ISO 14001 / EMAS. Success Factors and Obstacles General success factors and obstacles to clean design apply to these and other sectors,especially the still relatively low market demand C CATEGORY 3 (little as yet) Sectors Relevant sectors are: Aerospace Energy Finance Retail Scientific instrumentation Transport While many environmental issues apply to these sectors and many companies within them consider environmental issues to varying degrees, there are few examples of companies taking a systematic, life cycle approach to the design of their products and services. Within the civil aerospace sector there is well established attention to specific product environmental issues in use, e.g. fuel efficiency, noise and emissions, but little evidence of full life cycle considerations. Choice in the use of the main materials is limited by strength to weight considerations, while there are already high levels of refurbishment to extend useful lives and recycling of valuable materials. Environmental issues have not been primary issue in the military aerospace sector , although the aerospace and defence industries like all others, are increasingly having to face the problems of equipment at the end of its life. Clean design is likely to be an emerging issue. Some companies like Lucas, supplying aerospace electronics and other equipment, have already recognised the issue and are seeking to address it. Energy Within the energy sector, design activity is focused on minimising the impacts of product plant and processes, although life cycle impacts are considered up to a point e.g. impacts of limestone extraction for National Power's desulphurisation processes. Financial It is rare for financial companies to consider the environmental impacts of their total service, including their investment policies. Exceptions include the Co-op Bank which has an environmental and ethical investment policy. Where environmental design considerations are applied these are mainly to design of offices and other premises (e.g. Halifax Building Society has an in-house design function). Retail Few retailers are involved in designing products, although they are in some cases involved in specifying 'own brand' products, e.g. Sainsbury. Those with strong, proactive environmental policies, e.g. B & Q, nevertheless may influence product design (where they are major players) by virtue of what they will or will not stock. Most retailers are not actively marketing green products but should they perceive demand, retailers have a powerful influence. Sainsbury's Environmental Team would like to be more proactive in this area if they can make a business case. Scientific Instrumentation Although individual companies may practice clean design, especially where proclaiming environmental instrumental equipment, and producer responsibility or consumer requirements may be an issue for this sector. Production and waste volumes are small compared to consumer electronics and most companies in the sector are SME's where resources for alternative clean design will be limited. Clean design could nevertheless grow as an issue where business customers require it. Transport The focus within this sector is on the environmental impacts of infrastructure, operations and equipment. While designing infrastructure, they do not generally design vehicles. Nor are there any known examples of transport operators designing whole systems with life cycle considerations in mind. Nevertheless, many transport undertakers are major purchasers of materials and equipment and may specify custom-built equipment. Some UK and international operators have environmental policies and environmental management systems. If this trend grows it should have a knock-on effect to product suppliers. Particular environmental requirements relate to specific operational requirements for clean, energy efficient, low noise vehicles and systems, rather than full life cycle requirements. Drivers External drivers are presently limited for clean design as a specific activity, i.e. lack of specific environmental drivers relating to the product or service. Various environmental regulatory pressures exist and market pressures could emerge in all cases to drive greater attention to clean design issues. Success Factors and Obstacles Presently clean design is most likely to be driven by corporate responsibility or where environmental regulations over processes operations in extended to products and services. The main obstacles are in some sectors such as the financial sector, lack of awareness and conservatism and a lack of environmental ethos, and more generally a lack of regulatory and market pressures. ANNEX 4 CASE STUDIES CASE STUDY 1 : DESIGN FOR CHEMICAL RECYCLING : ICI POLYURETHANES Overview This case provides an example of the growing attention to clean product design by chemicals companies and also an example of clean design stimulating innovation and leading to potential business success as well as environmental benefits. Closed loop chemical recycling of polyurethane has been a goal of the polyurethane industry for many years. ICI Polyurethanes has integrated ultimate recovery and recycling, as well as other environmental considerations into the design of a novel polyurethane cushioning material, "Waterlily", for mattresses and furniture upholstery. Benefits claimed include a 40-50% saving on the energy required to make a mattress, depending on the transport distances assumed. This is one of the first examples of environmental life cycle assessment being applied to product design in ICI. Wider application is being encouraged within the group. Drivers The initial objective of the "Waterlily" project within ICI was to design a flexible foam which did not use any organic solvents in production and which replaced toluene diisocyanate (TDI) with the less volatile diphenyl methane diisocyanate (MDI) to improve workplace air quality. However, it rapidly became clear that a more important broader objective was to develop a product with reduced environmental impact during the whole life cycle. A particular issue for polyurethane materials is their wide application and contribution to end-of-life waste problems, so growing regulation, and the opportunity for market advantage were the primary drivers. Demands were arising from various sectors, e.g. car manufacturers as well as furniture manufacturers. An additional factor is ICI's wider commitment to environmental responsibility and improvement. A further consideration and driver has been the large amounts of scrap material generated when slabstock is cut to shape. Historically it has been exported to the USA where there is a large market for rebonding scrap chips into carpet underlay. However, this market is itself shrinking as more underlay is recycled. Polyurethane foam can be physically recycled by pulverisation and conversion to foam or chemically into basic chemicals. However, there are quality limitations to the resulting foams and chemicals. The Design and Development Process The process was driven by the environmental function but with wide consultation. The first step was to undertake a broad life cycle analysis of existing polyurethane slabstock, concentrating particularly on energy consumption. The exercise pointed to nearly 80% of energy consumption for the product being in the foam oil extraction to manufacture of raw materials. This focused effort on a design for recycling strategy. As a second step various stakeholders were contacted along the product chain to verify the assumptions and define a set of priority requirements for each stage. This helped to address the problem of balance of other environmental concerns such as air emissions. Broad requirements were (alongside physical performance, cost etc.) The use of an isocyanate less volatile than TDI and the design of a similar formulation No measurable isocyanate vapour in slabstock cutting factories, no organic blowing agents and elimination of the potential for auto-combustion Packaging to be returnable and recyclable, and the environmental impact of transporting foam to be minimised Improved fire performance without the use of halogenated fire retardants Production and post consumer waste to be designed for chemical recycling, suitable for physical recycling or as a feed for energy recovery It became clear that the ideal solution would be closed loop recycling - turning the foam back into MDI and polyols (polymerising materials).With these issues in mind two research projects were then carried out by ICI in parallel - one to develop a novel chemical formulation using MDI, and another to devise process technology for chemical recycling. In addition, because of the environmental and practical problems, and cost, of transporting low density foams, a compaction process was developed to covert the foam into solid pellets. A novel formulation was achieved to meet these requirements.A novel process for chemical recycling was also developed using a split phase glycolysis process in which compacted polyurethane pellets are dissolved in diethylene glycol (DEG) in the presence of a catalyst. This separates the polyol which can be used to replace virgin polyol in polyurethane manufacturing, giving a recycled control in the final foam of up to 70%. The MDI cannot be separated but a by-product from DEG can be used in rigid foam. Life cycle analysis was used to check the various waste management options in relation to environmental benefits, i.e. chemical recycling, physical recycling, rebonding the foam and incineration. Chemical recycling was found to be the best overall, especially on energy saving. Benefits It is too early to judge the success of the project.The product is selling fairly well but production volumes sales are still relatively small. It cannot be said that there is a large market demand, particularly in countries such as the UK where customer awareness and interest is limited. Nevertheless, the product has been well received in certain markets and sectors. ICI collaborated with some of the most influential furniture designers in Europe in order to test its technological objectives in relation to the needs of their customers. An exhibition of their furniture designs incorporating their environmental thinking and inspired by "Waterlily" was held to considerable acclaim in Milan in 1993. The product has significant environmental benefits. To realise these will depend on chemical recycling on a commercial scale. Post consumer volumes are still too small to feed a commercial plant of 3 - 5000 tonnes per year, but this could change. ICI is currently deciding whether to build a commercial plant. Success Factors and Obstacles Success factors in the project have included recognition of a potential market opportunity relating to post- production and post consumer waste, and this case having the resources to develop and launch a new product. Internally, an important factor in the successful implementation of clean design, was having the process driven by an environmental champion working closely with research and development; also wide dialogue with interested parties within and along the life cycle chain. There were, and continue to be a number of difficulties and obstacles within the design process itself: Evaluating options: the lack of simple tools for life cycle analysis,especially the difficulty in trading off alternative issues Communications with research people: selling the benefits of clean design and encouraging innovation. Their inclination was to make incremental changes to existing formulations, not selling novel solutions Communications with marketing: their attitude tends to be 'there is no market, so why bother' rather than what opportunities are there / can we create and how can we educate our customers Externally there remains a range of potential obstacles to success: Customer attitudes and awareness Availability of recycling infrastructure and plant Economic volumes to feed recycling plan Economic factors, e.g. the price paid by recycling companies Vs the price paid by the US rebonding market CASE STUDY 2 : IBM Overview This case provides an example of a company where clean design is relatively well established and where clean design is routinely incorporated into all product design. Although a very large company its evaluation systems could be widely applicable. One of IBM's corporate environmental objectives requires all manufacturing sites to consider environmental factors when designing products. Product managers are specifically required to "Develop, manufacture and market products that are safe, energy-efficient, protective of the environment and can be recycled or disposed of safely". An international task force was established in 1990 to better understand environmental issues pertaining to the design, re-use, recyclability and disposal of IBM products, supplies and packaging. The issues from this development and manufacturing locations around the world, embracing many thousands of parts and some very complex manufacturing processes. Through this work criteria and guidelines were developed. A range of guidelines were produced to suit different products. Drivers The main corporate drivers for environmental performance have been regulatory pressures on processes (especially in the USA), materials and energy cost savings in manufacture, and corporate environment. Unusually within IBM,the main driver for clean product design has come from Europe and recognition of emerging producer responsibility issues and associated market opportunities and threats. There have also been other drivers, e.g. pressure groups, complaining against use of PVC led to IBM generating considerable life cycle information. An additional factor now is a programme of putting plants through ISO 14001 (Greenock is the first plant in the UK). Design Processes To fulfil its corporate objective all sites making decisions regarding products are required to: Carry out environmental impact assessments incorporating life cycle analysis Design consistently for the environment through: selection and specification of recyclable materials, maximising the recyclable content and using recycled materials use of energy-efficient parts and processes ensuring ease of disassembly Most design is carried out in the USA although there are development sites elsewhere and manufacturing sites make sure decisions relating to products, e.g. some aspects of materials and production. An outcome of the task force work was to establish the IBM Engineering Centre for Environmentally Conscious Products at Research Triangle Park, North Carolina. Here multi-functional teams have been established to evaluate existing products and influence new designs by working with design teams for the various types of IBM products (e.g. PC's, large systems, networks). The Engineering Centre teams influence but do not dictate; it forms a focal point and hub. Within each design group is an "environmentally conscious" contact point, or champion to be a focus for other designers. Corporate guidelines, alongside data inventors, provide a framework for design decisions. Designers are not expected to carry out LCA (this being done by the Engineering Centre) but to follow the guidelines. Clean design software tools are not specifically used although CAD / CAM tools are widely used in engineering and product design. Guidelines are fairly simple although disguise considerable LCA work done elsewhere. They include for example, simple practices for evaluation products though its life cycle phases against materials, energy and performance attributes. Through the multi-functional Engineering Centre, and other planning processes, a range of functions including markets are involved in considering environmental issues at an early stage in the design process. Environmental personnel actively communicate environmental issues to all functions including marketing and sales to encourage feedback from customers. The company has been actively involved in its industry-wide and its own initiatives in such areas as take back. Benefits Benefits to the company have been easier to quantify (and therefore sell) at the production stage where materials savings waste and other costs are identifiable. For example PVC containing 100% recycled PVC (from old IBM computers) proved to be 20% cheaper than virgin material while also providing environmental benefits. Marketing benefits are more difficult to quantify. Most PC products have energy stars but the benefits and success of eco-labelling have been difficult to quantify. IBM's first energy-starred PC, the PS2E, did not sell well, illustrating the point that consumers will not (at least yet) pay extra for environmental performance. Even in more environmentally conscious markets such as Scandinavia IBM has no evidence of additional sales from its products' environmental attributes or of specific demands from customers (surveys have been commissioned). It nevertheless takes the view that since all major computer companies are about equal, it would be a disadvantage to be a poorer performer. The emphasis is on flexibility and value, to provide environmental benefits for customers which require it, not assuming homogenous demand. Success Factors and Obstacles Success factors in implementing clean design have been corporate responsibility and taking a strategic approach to the issue; also the reliability of in-house resources and skills. Its size and influence has been an important factor in starting take-back and other initiatives. Within the company, adopting a team approach and having case material has been important for selling the ideal and achieving co-operation. Nevertheless there are a range of obstacles to the success of its efforts within and outside of the company. Outside of the Company Industry standard components and sub-assemblies are increasingly sought and sourced (badge engineering). This reduces the ability to control and carry out LCA's although materials may be specified; in these circumstance it can be difficult to go into the supply chain and in-house methods need to be supplemented by external information; functional performance requirements may be met at the expense of environmental performance Availability of recycling / disassembly infrastructure for the products which cannot be taken back by IBM (i.e. may reverse logistics systems) Technology available, e.g. what to do with CRT's Within the Company The main issue is reaching the marketing and sales functions, e.g. encouraging them to: Be interested enough to promote environmental attributes and feed back market information Educate customers Recognise opportunities Some progress is being made in this area by provision of support databases available on salesforce laptops. CASE 3 : WILKHAHN Overview This case illustrates the successful application of eco-design in a medium sized company and environmental issues within the furniture industry. Wilkhahn is a family owned company with its headquarters near Hanover in North Germany. It has around 600 employees in Germany and world-wide, and its organisation includes a UK subsidiary. The company manufactures and distributes a range of office furniture, mainly seating and tables. From its foundation in 1907, the company adopted a design philosophy which was principally influenced by the Bauhause spirit and in the late 1950's by the design philosophy of the High School for Design in Ulm. Company philosophy became the basis for commitment to environmental excellence. The company stopped using tropical timber in the 1960's and had for many years fuelled its heating system using wood chips and sawdust. By the late 1980's the company had established its environmental objectives. These included the objective of making products greener and increasing their value to customers. In parallel, Wilkhahn's second objective was to make products greener and to neutralise any negative impacts on the environment. Plans were made and a project established to implement the objectives. This involved acquiring data on materials and information from suppliers and in 1993 the first eco-balance sheet was produced giving detailed information on the flow of materials and energy within the company. In 1989 eco-design was applied for the first time in the development of the Picto chair range. Eco-design is now applied to all products. Drivers The primary driver for practising eco-design is the company philosophy of responsibility alongside recognition that good design in this area is also good business in relation to materials and energy savings, and potential market advantage. Design Processes Eco-design is a fully integrated part of Wilkhahn's product development process. All products are designed against 'form', 'function' and ecological criteria. Ecological criteria are considered against an ecological checklist developed on the basis of its research project work. The checklist ensures products are kept simple, longevity is maximised, materials are re-usable and the design has long-term appeal. The design brief must include these criteria from the start and a project can be abandoned at any stage if it is environmentally unacceptable. The checklist was first tried out with the Picto chair as a basis for further development. The result in this case was a 95% recyclable chair. Another more recent example is the Modus office chair, applying the 'less is more' concept. For example, the chair no longer has a back made of polypropylene but a back covered with fabric. Design is driven by an in-house product development department which is also responsible for the management of all environmental design matters. The company's internal design department became so successful that it was set up as an independent design company called Wiege. Wilkhahn now invites Wiege and other design companies to tender for design contracts. Benefits The general benefits for the company have been in developing a successful business niche. Specific benefits of applying eco-design in the case of the Picto chair were: Savings through economical use of materials The chair is 30% lighter compared to many office chairs Mainly pure materials such as wood, aluminium, cotton All joints easily disconnectable (for disassembly) Fastening of upholstery without glue All parts more than 100 gm clearly code marked In 1996 the company received the German Ecology Prize. Not only did the company receive a substantial cash prize but also wide market recognition. Success Factors and Obstacles Central to the company's success has been its philosophy combined with sound business objectives and commitment to investing in improvement. Also important has been the application of simple but rigorous principles and checklists in design, acquiring basic data and good co-operation, involvement and support by suppliers. Wilkhahn is privileged in its German home market by the recognition of the value of good industrial design, and a much larger awareness of ecological issues when compared to other countries. Whilst the USA, the Scandinavian and some other countries share similar values to Germany, good industrial design and ecological responsibility have not had their importance recognised in the UK market. Nevertheless, Wilkhahn report encouraging signs that, with the easing of the recession, these two criteria are gaining more importance, especially when building or interiors are specified and followed up by architects and interior deigners. One of the main obstacles has been that new materials are sometimes more expensive than traditional ones. 'Intelligent' engineering may help to offset these disadvantage, e.g. by fewer parts. CASE 4 : HEWLETT PACKARD Overview This case study illustrates a successful approach to managing eco-design. Although the case relates to Hewlett Packard (HP), one of the world's leading companies, the approach could be applied in many different types and sizes of company. Eco-design at HP takes place within a framework of corporate commitment to environmental improvement and the concepts of "championship" and "product stewardship". This is a particular feature of HP's culture and organisation in which an appropriate and engaged individual or group takes up an idea or objective and sees it through to fruition. Product stewardship is a form of championship applied to products, including their eco-design. Design Activities HP's product range covers computers, printers, electronic test equipment, medical and chemical analysis equipment and electronics components. Its commitment to the Environment Statement was originally produced in 1992 and derived from its Environment Management Objective which in turn was derived from its Citizenship Objective. The Environmental Management Objective covers all products throughout their life cycle to ensure all processes in their production, distribution and use are environmentally responsible. Product development starts at HP's research laboratories - there is one in the UK, at Bristol, and some in other countries as well as in the USA - and environmental considerations are taken into account from the earliest stage through multi-disciplinary teams. Further development to the production and distribution stages takes place through the manufacturing divisions. Every manufacturing division has world-wide networks of product stewards communicating directly and through HP's Internet. There are about 80 product stewards within HP whose roles include fostering environmental strategies throughout the life cycle of the product and into its end of life management. Part of this role is to ensure where possible, that recycled materials form part of the procurement process for new products. The product steward, whose role may be full-time or in addition to other functions, is responsible for ensuring LCA and environmental impact assessment and for focusing the attention of HP's product group. Rather than in-line management function, the role is primarily one of facilitator, working across functions and disciplines, gather data from HP's world-wide network and using this to raise environmental awareness and commitment. The networks of product stewards is 'virtual organisation' facilitated from Corporate and Group Headquarters, forming a support platform for environmental action via the Product Steward Council. The product stewardship network is designed to overcome the barriers to cross functional programmes, and to collaboration and co-operation, posed by business unit activities. Process management and improvement are fundamental elements of HP's overall management systems and there are six for the Product Stewardship Network, e.g. the self assessment procedure. Under each, measurable objectives and simple networks are established as a basis for improvement. Product stewards fulfil their roles especially by communicating in various ways, including: Attending conferences and seminars where they share ideas Holding briefings and workshops within and beyond HP Participating actively in focus groups and improvement projects Collaborating in the production of guidelines for HP's designers and provision of specimen criteria for many types of environmental decisions Running the Intranet "Fountainhead" page accessible by all interested HP persons world-wide Decisions are made based on consensus and involve recommendations, evaluations and adoption. Learning is transferred through the network. Guidelines are frameworks rather than prescriptive. Eco-design considerations are applied to suppliers through environmental criteria for the procurement function alongside technology, quality, reliability, delivery and cost. More widely, HP is involved with various initiatives in the area including supporting a recycling vendor and EMERG the Electronic Manufacture Equipment Recycling Group. One of its manufacturing groups is working with the Bayer Plastics Group to establish a more fluid flow of recycled materials to help address the problem of erratic and inconsistent flow of recycled plastics. Drivers There are various drivers for HP's eco-design activities as part of its wider commitment to environmental improvement: HP's commitment to environmental responsibility and leadership Recognition that the environment is a key strategic issue and market opportunity Recognition of the bottom line benefits from saving materials, energy and other cash Impending product responsibility regulations Benefits Product Stewardship is a new activity within HP so it is still early to measure the full benefits of this particular approach although results so far are promising. The overall benefit of eco-design itself is, however, clear to HP - that it is essential for its business competitiveness and success. Its early adoption of Energy Star gave it high profile and advantage when President Clinton ruled that the US Government would not buy computer equipment that was not energy starred. Success Factors and Obstacles Essential to the successful implementation of eco-design in general and product stewardship in particular has been recognising that eco-design requires an enabling management process in order for technical design processes to operate successfully. Besides having a strong business impetus, success has been facilitated by HP's commitment to improved environmental performance across all of its activities and a corporate culture which encourages cross functional co-operation and collaboration. One obstacle in common with other companies is that knowledge about what the customer wants can be difficult to get to designers, especially if sales and marketing personnel do not see an opportunity. A key part of the Product Stewardship approach is to help break down such communications barriers.