A Case Study - Proctor & Gamble

8/7/2019 A Case Study - Proctor & Gamble

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1

Hamburg, June 14th 2002

By Tom Feijtel, PhDAssociate Director, Product Safety

Procter & Gamble

Assessment Toolsat Company LevelAssessment Toolsat Company Level


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Outline CONTEXT P&G

R&D Business Decision-making Environmental Management Framework

Sound Management of

Chemicals/Products Substitution ? Tools and Illustration

Conclusions


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

Laundry and cleaning products Personal care & beauty care products

Pampers, Tissue Towels Pharmaceuticals Food and petfood

Over 120 manufacturing sites worldwide


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STATEMENTOF

PURPOSE:

WE WILL PROV

IDEPRODUCTS OF SUPERIORQUALITY AND VALUE

THAT IMPROVE THELIVES OF THE WORLDS

CONSUMERS


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In practical termsIn practical terms

The integration of :

Economic Development

Social Responsibility

Environmental Protection

Improving

the

Quality ofLife.


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Sustainability

An operational definition

Sustainability

An operational definitionSustainable development is a

very simple idea. Its aboutensuring a better quality oflife for everyone, now and for

generations to come.Department of the Environment, Transportand the Regions, London, UK, February 1998


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R&D Business Decision-making

R&D-Business

Decision

Competition

Bench Marking

Performance/Value

Consumer Test

Organizations

Customer -

Consumers

ConsumerTests

Market

ResearchPerformance

CostLCI

data

Human &

Env RA Processing

Supply

Compliance and Risk Assessment :- Production & manufacturing compliance

- Chemical classification/labeling

- Chemical testing & registration

- Risk Assessment

- etc..

Efficient Resource

and

Waste Management

Addressing

Societal Concerns


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AN ENVIRONMENTALMANAGEMENTFRAMEWORK

Recognizes Four Key Elements: Human and Environmental Safety Regulatory Compliance Efficient Resource Use and Waste

Management Consideration of Social Concerns


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Organisation

Data

DECISION MAKING

Data

SafetyHuman Health Risk Assessment

Ecological Risk Assessment

Economic analysis

Product LCI

Eco-design

Disposal company auditing

Material consumption monitoring and reduction

Manufacturing site mgmt.. systems auditing

Manufacturing site environmentalauditing

Auditing major & new supplier s

Resource Use and

Waste Management

Regulatory Compliance Manufacturing site mgmt.. systems auditing

Manufacturing site wastes reporting Material consumption reporting

New chemicals testing and registration

Product & packaging classification & labelling

Understand & anticipate.

Interact

Addressing Social Concerns

OBJECTIVE

Economically (and technically) Feasible,

Socially acceptable,Environmental Management

towards Sustainability


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Environmental Management - an overall framework

Goal:Environmentally and Economically Sustainable Management

1.Human and

Environmental Safety

2.RegulatoryCompliance

3.Efficient

Resource useand waste

management

4.Addressing

societal concerns(i.e. understand &

respond)

Manufacturing sitecompliance auditing

Manufacturing sitewaste reporting (e.g.TRI)

Material consumptionreporting

New Chemical testingand registration

Product and packagingclassification andlabeling

Human health RiskAssessment(occupational andconsumer exposure

Environmental RiskAssessment at alllife-stages of thechemical (i.e.production,formulation, use anddisposal)

Tools:Manufacturing sitewastes and energyconsumption,monitoring andreduction

Material consumptionmonitoring andreduction

Supplier auditing

Product LCI/LCA

Eco-design

Economic Analysis

Understand:-Opinion surveys-Consumer and marketresearch-Networking

Respond:-public presentationsand publications-Scientific and industryworking groups-Reporting-Co-operation with otherstakeholders to findsolutions

Elements:


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AirEmissions

Aqueous

Emissions

Solid

WasteSubstitution ?

What, why,

How ?


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ENVIRONMENTAL

RISK

ASSESSMENT

HUMANRISK

ASSESSMENT

PRODUCT

Performance(e.g. consumer/product

Score/testing)

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

S

U

S

T

A

I

N

A

B

I

L

IT

Y

SOUND MANAGEMENT OF CHEMICALS

SOUND MANAGEMENT OF PRODUCTS

PR

O

D

U

C

T

D

E

V

E

L

O

PM

E

N

T


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TOOL BOX ?TOOL BOX ?

Risk Assessment

Lifecycle Assessment

Risk Management

Risk Communication

Cost-benefit

and many other .

Improving

the

Quality ofLife.


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RISK ASSESSMENTIS AN

ESSENTIAL BUSIN

ESS TOOL IN:

The Development of New Technologies, ProductIngredients and Manufacturing Processes

Industrial Site and Emissions Evaluations

Registrations and Discharge Permits

Natural Resource Damage Assessments

Precautionary and Environmental Labeling


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A HazardA Hazard -- Risk ContinuumRisk Continuum

((Adapted from Swanson and Socha 1997)

Hazard Risk

Toxicity +

Physical-

Chemical

Properties

Toxicity +

Physical-

Chemical

Properties +

Production/

Release

Toxicity +

Fate and

Transport

Model

Generic

Risk

Assessment

Endpoint-specific

Site-specific

Risk Assessment

Amount and Specificity of Data Required

Ranking and Scoring


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Chemical Use/

Avoidance

Prioritization/

Screening for

FurtherAssessment

Safe/Unsafe

Handling,

Production & Use

Hazard

Communication

Tools

Chemical

Ranking &

Scoring Tools

Risk

Assessment

Illustration of where the tools may fit

Priority list(e.g. WFD)

COMMPS

EURAM

Risk

Assessment

HazardClassification

& Labelling

MSDS

Labels

POPs

CMRs


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RISK Management

How to think about substitution ?

RISK Management


Several basic ways to do this: Reduce the Hazards Reduce the Exposure by the way a

product is designed (e.g., less of the samesubstance, managing availability, or

fate/biodegradability

or a combination of both

or innovate, substitute, .


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Ingredient x : Safety

success criteriaSafety programme:

Fate profile significantly better thansubstitute

Effect profile not significantly differentthan substitute

RQ in all compartments < 1


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R&D and Business Realities

. Performance/cost/. Performance Env Safety Relative cost

$$

$$$$

$$$

$$

$

Specs

Reference

Sub-1

Sub-2

Sub-3

Sub-4


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Need to account for

all legs of the stool


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Since it may not be

actionable


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RISK Management


RISK Management


Other example: mass efficiency

use a 10X better performing chemical twice as toxic as the one it replaces

risk profile would be 5X better

It also (probably) has a significant

lifecycle benefit, as much lessmaterials/energy will be used to make it,

per unit of performance

Maybe cheaper as well.


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THE HAZARDS OF

HAZARD-BASED substitution

Detaches Dose from Risk

Is Easily Misperceived by the Public asSynonymous with Risk based action

Does not encompass holistic human and

environmental risks Does not include entire life-cycle and

other potential impacts


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Life Cycle Analysis

of product/servi

ce

Life Cycle Analysis

of product/servi

ce

= Accounting of all energy and raw materialconsumption (inputs) and associated environmental

emissions (outputs) for the whole life cycle of aproduct or service

Supply M anufacturing U se D isposal

I

/

if

l

t


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LCA is a process that

(ISO)

LCA is a process that

(ISO)1/ Evaluates the environmental burdens associated

with a product, process, or activity by identifying

and quantifying energy and materials used andwastes released to the environment.

2/ Assesses the potential impact of the energy andmaterial flows on the environment,

3/ Identifies and evaluates opportunities forenvironmental improvements.

I

/

if

l

t


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What does LCA look at ?What does LCA look at ?

Resource use efficiency:

- Energy

- Water- Land

Impact categories:

- CO2 emission/Global warming

- Smog/Ozone formation

- Ozone depletion- Acidification

- Eutrophication (N/P)

- Human health

-Ecotoxicity


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Risk Assessment vs LCARisk Assessment vs LCA

Life cycle assessment

(LCA)

Env. Risk assessment

(ERA)

ClearanceEnvironment

LCAERA

LCA profile, report

Comparative

Voluntary

Absolute

Compulsory


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Evolutionwithintheregularpowdercategorysince1988 excludingtheusestage

0%

20%

40%

60%

80%

100%

120%

Reco dose

Packaging/wash

Energy

Solid waste

Acidification

Aquatic toxicity

Eutrophication

Climate change

Ozone depletion

Photochemical smog

Regular powder1988

Regular powder2001


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LCA vs Risk Assessment ?

RA and LCA are complementary tools, not

mutually exclusive Decision for environmental improvement

and sustainable development must be

based on the outcome of variety of tools There is not such thing as a simple

answer


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CONCLUSIONSBUSINESS REALITIES PLAY A ROLE IN SOUND

CHEMICAL AND PRODUCT MANAGEMENT

1. All Social Activities Carry EnvironmentalPressures and Efforts are Needed to Identify the

Extent and Severity of this potential Impact

2. Technological Innovation is Essential to Humanand Environmental Quality Improvement and

Business Success

3. Only Products/Services Offering CompetitivePerformance and Value Survive to DeliverEnvironmental Benefits

Documents

A Case Study - Proctor & Gamble