Conclusion
There are a range of issues confronting the application of life cycle thinking in New Zealand. The creation and maintenance of detailed, accurate and up to date inventory is central to the application of Life Cycle Management (within business), Life Cycle Assessment (in practice), Greenhouse Gas (accounting), government (policy) and Research Science and Technology (development).
Inventory information needs to be consistent, transparent and available to ensure the wide uptake and use of the various tools and techniques on hand.
Figure 5 Life Cycle Thinking
Challenges and opportunities
As an emergent discipline, capability is still in a development phase in this country and needs a concerted approach at a nationwide level to ensure the consistent spread of efficient practice, while building up and retaining the confidence of industry, business communities and consumers.
As an emerging concept there is a case for providing information around what Life Cycle Thinking is, and what it can deliver for New Zealand firms and industries including their stakeholders, customers, supply chain partners, regulators and social partners. This would ideally include specific information about Life Cycle Assessment and Life Cycle Management in the public domain for easy access such as the Environmental Protection Authority website on LCM (EPA Victoria, 2008).
Figure 5 Life Cycle Thinking provides an overview of the different stakeholders which utilise inventory in differing contexts. There are many relationships between these sectors, but this figure illustrates the central nature and importance of inventory data to enable broader application of Life Cycle Thinking.
Impact on SMEs
The creation and maintenance of data at an individual company level can be very difficult without specialised staff or guidance for existing staff in an enterprise.
This is a particular hurdle for SMEs, which can be faced with a disproportionate cost relative to their business scale. Several practitioners in the GHG accounting area have noted concerns about the ongoing costs to SMEs in different sectors (Smith, 2008), stating that keeping their information up to date is becoming a particular concern in areas such as the food and beverage sector, especially as their product ranges evolve quickly and involve ongoing changes in ingredient mixes.
PAS 2050
The economics of embodied carbon labelling and reduction for SMEs is a challenge which the PAS 2050 has sought to address by promoting a method which can be more inclusive and enabling for a wider range of stakeholders. The PAS 2050 is yet to be fully finalised but contains some contentious aspects such as the use of economic allocation, which is generally perceived to have negative value for New Zealand products and services.
Taking a proactive approach at a pan-industry level is likely to be imperative for New Zealand's business and science partners to establish a risk-avoidance system of assessments. Over time this will allow them to bolster a range of international market- leading positions for economically significant products and services, including energy, tourism and transport.
Top down vs. bottom up
The application and use of new and hybrid methods such as Environmental Input Output Analysis (EIOA) (also known as economic or extended input output modelling) is going to increase in importance as a viable way to achieve Life Cycle Thinking outcomes. EIOA uses economic data to model the inputs and outputs of a company or industry sector using averages from applied research.
Semantically, LCA is 'bottom up' using specific process data while EIOA is 'top down', using economic data and averages. As LCA can be cost-prohibitive to undertake, EIOA offers some potential to deliver similar results at lower cost in certain areas although it does have some limitations. There are also emerging tools in countries such as Australia that allow companies to use their economic data to model their environmental footprint using averages (Andrew, 2008).
Understanding and developing these other skill sets is a valid priority to pursue alongside other initiatives, and would ensure NZ develops strategic capacity and understanding in this emergent field.
Data
Data up to the farm gate (cradle to gate) has been researched effectively, with a focus on primary sector data collection. There is, however, little in the way of post-processing (i.e. manufacturing and distribution) or credible end of life (cradle to grave) data, and this gap can only become of increasing significance to key industries in New Zealand as global consumer and regulatory requirements tighten.
Some data used is becoming outdated and may need to be revised or replaced, including in key sectors where New Zealand industry needs to maintain its momentum in impact mitigation in order to retain its world market position. For example, some processing information that is being used in the dairy sector is based on reports from the 1990's (Barber, 2008). Ascertaining the need for any key gap-filling research through discussions with practitioners would be useful to maintain the currency of the information being used as a basis for commercial decisions.
There are a wide range of research projects and initiatives underway in the private and public sector. These are being communicated in a partisan or ad hoc manner, and this can result in affected practitioners and industry having difficulty accessing the findings or lessons learned.
It is probable that at least some, if not all, of these projects could offer some common data (for instance energy or emissions factors) that is of potential use to others. Currently, there is no unified approach to these and other important datasets, which leaves the way open for inefficient behaviours such as duplication, variation and inconsistency of interpretation of the same data.
If datasets are made more freely available this would directly reduce the cost to undertake LCI, LCA and GHG work, thereby reducing the barriers to entry.
The Australian Life Cycle Inventory Database Initiative offers some real potential for learning and involvement. It can be outlined as follows:
"The Australian National Life Cycle Inventory Database Initiative (AUSLCI) will provide a national, publicly-accessible database with easy access to authoritative, comprehensive and transparent environmental information on a wide range of Australian products and services over their entire life cycle.
It will be an invaluable tool for those involved in LCA, as it will also define and develop consistent guidelines, principles and methodologies for the collection of LCI data, along with protocols for LCA processes for different sectors." (Australian LCI Project, 2008)
One of the key reasons for the creation of this project was to have a unified approach that would give industry and consumers confidence in the consistent use and application of LCI data.
The Australian team has approached New Zealand to invite practitioners and coordinators to be involved with this project, which warrants serious consideration.
Consideration should also be given to the establishment of a unified register of all databases within New Zealand, working with interested parties from research and industry. Maintaining updated knowledge of new and existing databases and their status is likely to enable and encourage sharing of information while eliminating inefficiencies. There is a role for industry to contribute aggregated information (e.g. through industry organisations) and to fund such initiatives alongside research and industry development partners to reduce individual company costs.
A register should ideally incorporate reference to both private and public data as there may be commercial situations where private data can be used for mutual benefit for each party. This data would need to be stored in a common format (XML) and have common data collection annotations (ISO14048) and the status (Public or Private) to ensure effective management of all nationally useful LCI data. It is likely that the creation and maintenance of sector-level data would mitigate or spread the cost of essential data collection among wider groups of stakeholders
Data Collection
If Statistics NZ was to collect data on simple key metrics for environmental assessment (Alcorn, 2008) this could be a significant and enabling step. It would immediately reduce some costs of data collection and collation and open the way for increased uptake of LCA and other analytical methods, such as carbon foot printing. It would also embed the collection of environmental information in New Zealand, driving a leadership position in the area internationally.
Existing economic input/output tables could also be reviewed and improved to deliver more advanced information to those using EIOA and hybrid processes, as these are noted to have limited quality (Andrew, 2008).
Other approaches
There are a range of different methods that are being used in addition to, and in combination with, LCA. Currently the best example of this is Economic Input Output Analysis (EIOA). This is used in conjunction with LCA as a hybrid where appropriate process data is not available or cannot reasonably be obtained.
It is important that NZ encourages consideration of the adoption and evolution of new approaches to prevent over-commitment in one area.
Life Cycle Thinking
It would be advisable to form and maintain a leadership group of top practitioners and business stakeholders to advise and inform all interested agencies and stakeholders on life cycle practices and quality standards, including the prevention of duplication of data.
Progress could also be achieved through existing bodies, such as the Eco-Verification Network, Sustainable Design Working Group and the Life Cycle Assessment Working Group by bringing Life Cycle Thinking into their scope and looking for ways to promote and support new approaches and their adoption where multiple NZ industrial actors can benefit. These groups however represent specific and not general interests; the real value would be generated by encompassing a wider range of Life Cycle Thinking perspectives at the same table.
Taking a 'unifying' approach would be seen as an essential tenet of forming a leadership group in the area of life cycle thinking due to the differing interest groups that are interrelated in this area.
There have been previous proposals tabled by the LCA working group (Nebel, 2008) which sought to create a portal for educating people in New Zealand about LCA and the wider issues of Life Cycle Management. This is attached to the appendices due to its relevance.
High growth and emerging sectors
To align effectively with government policy and RS&T spending, it is crucial that the environmental data needed for new high growth industries is identified. Without this step, there could be a risk that their entry into new markets is frustrated, and the RS&T and innovation spend would then have a restricted downstream impact.
Historically New Zealand firms and sectors have tended to 'react' to legislation and change rather than seeking out leadership positions. This probably stems from a well-understood pattern of this country's economic actors being largely 'standards-takers'. However, in a rapidly-moving and intensely competitive international economic climate it has become a serious risk exposure for many industries, especially those relying on manufacturing, energy inputs and significant raw materials use. The emerging sectors probably cannot afford to wait for industry or regulatory norms to be established in markets elsewhere before they move to the frontier of such trends as eco-verification and Life Cycle Thinking.
Capacity
There is a severely constrained pool of LCA capability within New Zealand. Only a few people (estimated to number fewer than 10) have comprehensive understanding of the whole LCA method and the wider related issues raised in this study.
This group tends to advise a wider peer group of practitioners about best practice and structure for various studies. This creates a bottleneck for any substantial studies that need to be undertaken concurrently.
This constraint represents a risk to New Zealand's ability to undertake and maintain complex datasets to ensure integrity of downstream assessments. Research providers often do not have good connections to each other or to Universities, and this can present another obstacle to efficient practice.
Capability
There is currently no tertiary education on LCA or analytical environmental assessment. This shifts the cost of education onto research providers, practitioners and ultimately their industrial clients, which further exacerbates the existing resource constraint and the squeeze on sectors and firms. In addition, it limits opportunities arising for graduates to pursue ongoing studies and careers in life cycle thinking.
The Landcare Research Life Cycle Management initiative (McLaren, 2008) represents a real and concrete step to address this. The project intends to develop six companies and educate six Masters students, as well as LCM champions in the companies. This should lead directly to a better base of understanding and skills in New Zealand. If successful, this programme could conceivably be extended under the stewardship of a wider group to incorporate more companies to accelerate uptake.
Practitioner Community
The practitioner community in New Zealand appears to be grouped into commercial and research concentrations. The linkages and collaborations around the research domain are relatively effective, but do not always take into consideration the commercial practitioners or the value they could provide. Creating the impetus for 'Life Cycle Thinking' from all sectors and practitioner groups to collaborate would generate more discussion and social ties, and assist in the formation of functional linkages between the private and public sector. There is a likelihood this would then lead directly to an increase in uptake.
This study has in part established that there are a wide variety of sectors engaged with LCA, which is a positive. But these sectors are operating in isolation with limited understanding of other parallel initiatives.
Facilitating a more nationwide approach would sharpen the focus on how the discipline and approach can benefit New Zealand and increase competitiveness both now and in the future.
Suggested Actions
There are a range of initiatives and actions that could be discussed and instituted. These include the consideration of:
- National LCI register and common format: assuming that a data collection policy was instituted, create a national register with consistent data descriptions and requiring data in an open XML format, for example. This would be an effective tool to build a clearer picture of where gaps are and would therefore help to target new research accurately.
- Data collection policy: defining the information that needs to be specified for data collection instituted with government endorsement. This might follow the ISO/TS 14048 outline which already exists.
- Code of practice: A government-endorsed code of practice to develop consistency in application. This would provide businesses with confidence that they are employing a practitioner who is using the most current, appropriate and efficient approaches for the New Zealand context.
- LCI Co-Funding: co-funding LCI development would provide practitioners with the ability to reduce the cost burden to companies. This could also be made conditional on the practitioners submitting their aggregated data to a national register and collection to contribute to a wider pool.
- Tertiary & Continuing Professional Education: a clear imperative which requires urgent action is the implementation of teaching at a tertiary undergraduate and post-graduate level to educate and train new practitioners, and build capability in this strategic area. (Such as the Landcare Research LCM programme).
- Establishment of Advisory groups: on Life Cycle Thinking (Incorporating LCA and LCM and other areas), Inventory Analysis and Impact Assessment to ensure specific advice on these three critical areas. These groups should be facilitated in such a manner as to involve key practitioners without creating unnecessary work for them.
- Establishment of a structured community: to support wider discussion, presentation and learning about life cycle thinking and its application within New Zealand.
Recommendation for further research
Within this document are some key observations which could result in further research. These are summarised as follows:
- Research and establish a formal register of all New Zealand Datasets across all sectors that is specific to New Zealand or modified and applied within a national context (this may not include data collection).
- Investigate and make recommendations on forming a New Zealand collection of databases in an open format (XML) with standardised data collection information.
- Investigate the possible loss of data richness or quality through excessively narrow selection of impact categories such as Global Warming.
- Investigate the barriers and impediments to uptake of LCA within New Zealand export sectors.
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