ISO 14040 & 14044ISO 14045

SEEBALANCE®

– Nutzen für REACH?

Peter Saling| Dortmund | November 5, 2013

Our sustainability understanding

2

Balancing economic, environmental and social needs to find the best available solutions is essential to ensure a more sustainable future.

On this journey, we need to act decisively together with and for our customers and other stakeholders.

Contributing to meet society’s needs more sustainably is the growth driver for our business

To measure sustainability, a quantitative sustainability evaluation is needed!

The sustainability evaluation toolbox contains a full set of quantification tools based on LCA.

Eco-Efficiency Analysis

 Includes environmental impacts and life cycle costs

 Already over 500 analysis since 1996

 Validated method by and Life Cycle Assessment (LCA)

 Evaluates of environmental impacts Life Cycle Inventory

 Quantifies inputs and outputs

SEEBALANCE®

 Includes social aspects

ISO 14040 & 14044ISO 14045

AgBalance™

AgBalance™

 Addresses agricultural aspects and customer demands

3 3

http://echa.europa.eu

European Commission needs this information

”… authorisation may only be granted if it is shown that socio-economic benefits outweigh the risk

ECHA Committees shall formulate their draft opinions within 10 months (Art 64(1))

” The draft opinions shall include… ”an assessment of the socio-economic factors and the availability, suitability and technical feasibility of alternatives...” (Art 64(4)(b))

Analysis of negative and positive impacts of one scenario (“applied for use”) vs. another (“non-use”). Impacts considered:

 human health, environmental

 economic, social and wider economic

Legal reasons for socio-economic

analysis

5

Aims of the SEA under REACH

CMR 1 + 2, PBT, vPvB and other substances with comparable high concern

Yes No

socio‐economic Analysis (SEA) Risk is adequately controlled ?

+ ‐

Does the socio‐

economic  advantages outweigh 

the risk?

Authorisation is granted

Authorisation is  denied Authorisation is 

granted

*CMR:carcinogen, mutagen, toxic to reproduction  *vPvB:very persistent, very bioaccumulative

*PBT:persistent, bioaccumulative, toxic

Alternatives available?

6

Flow diagram for the Process of Conducting a SEA (Technical guidelines REACH)

Source: ECHA, Technical Guidance  Document for SEA – Authorisation  Process, draft

7

Stage 2: Scope of the SEA

Overview: SEEbalance Procedure

define customer benefit identify products / 

processes establish life cycle

determination of social  profiles for each step

determination of eco‐

profiles for each step

determination of costs for  all life cycle segments  

aggregation of stakeholder  effects

aggregation of the effects  categories

calculation of total life cycle  costs 

normalization of social  effects

normalization of 

environmental impact normalization of costs

summary and final results

society

society ecologyecology economyeconomy

8

Stage 3: Assessing Impacts

Environmental Input- and Output Categories

Life‐Cycle Step Raw Materials and 

auxillaries

Energies

Land Use

Emissions to Air

Emissions to Water

Solid Wastes Toxicity Potential

INPUT OUTPUT

According to DIN ISO 14040+14044

9

Stage 3: Assessing Impacts

Overview of Social Impact Categories in SEEBALANCE

9

Employees

Working Accidents Fatal Working

Accidents Occupational

Diseases Toxicity Potential

Wages and Salaries

Professional Training

Strikes and Lockouts

Social-Profile

Local and National Community

Employment

Qualified Employees

Gender Equality Integration of Disabled Persons Part-time Workers

Family Support Future

Generations

Number of Trainees Research and Development

Investments

Social Security International

Community

Child Labor Foreign Direct Investment (FDI)

Imports from developing Countries

Consumers

Toxicity Potential

Other Risks

...

I. Schmidt, M. Meurer, P. Saling, A. Kicherer, W. Reuter, C. Gensch, SEEbalance ‐Managing Sustainability of Products and Processes with the Socio‐Eco‐Efficiency Analysis by BASF, Greener  Management International, Greenleaf publishing Sheffield, S. Seuring (guest editor), Issue 45, Spring 2004, 79 ‐94.

10

Stage 3: Assessing Impacts

Social categories of SEEBALANCE

The social impact of the use of a substance and of its alternatives on the employees is assessed by

considering e.g.:

 Number of working accidents shows how the

production process of substance contributes to the wellbeing of employees.

 Professional training shows the level of education that are connected with products.

 Reduction or Increase of possibilities for professional education.

 Wages and salaries show the specific and life cycle related benefits for employees

employees employees

working accidents working accidents

fatal working accidents fatal working

accidents

occupational diseases occupational diseases

toxicity potential + transport toxicity potential +

transport

wages and salaries wages and salaries professional training

(company expenditures) professional training

(company expenditures) strikes and lockouts strikes and lockouts

11

Procedure: Sector Assessment

Statistics A Working accidents

12217 accidents Statistics A Working accidents

12217 accidents

Statistics B Total production chemical industry

210 million t Statistics B Total production chemical industry

210 million t

58 accidents /

t chemical product

Sources:

Federal Statistical Office

Federal Agencies for Health

Unions

Professional associations

Companies (BASF, ...)

NACE 24:

24.1: Base Chemicals

24.2: Plant Protection Agents

24.3: Coatings

24.4: Pharmaceuticals

24.4: Detergents

24.X: ...

Source: Schmidt (2007)

NACE: ‘Nomenclature générale des activités économiques dans les Communautés Européennes’

11

12

Presenting Results

Energy Consumption

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5

Alt 1 Alt 2 Alt 3

MJ/UB

step 5 step 4 step 3 step 2

step1 0,00

Energy

Emissions

Toxicity Potential

Risk Potential Resources

Land Use

Alt.1 Alt 2 Alt 3

0,0

1,0

2,0

0,0 1,0

2,0

costs (norm.)

environmental impact (norm.)

Alt 1

Alt 2

Alt 3

0,00 0,50 1,00 1,50 2,00

Society

Environment Economy

Alt 1 Alt 2 Alt 3

Socio-Eco-Efficiency

Alt 1

Alt 2

Alt 3 high SEE

low SEE medium SEE

Technology Field

Materials, Systems & Nanotechnology

We develop cross-sectional technologies like nanotechnology for functional materials and systems.

Research focus

Dynamic portfolio of research programs based on cross-sectional technologies

Holistic research approach for systems

Nanotechnology as interdisciplinary technology

Examples of existing activities

Lightweight composites for load-bearing applications in automobiles and wind blades

Membranes with enhanced chemically performance

Advanced insulation material

Cost-competitive, modular production concepts for functional polymers

13

14

SEEBALANCE considers social impacts and benefits

Increasing employment as positive impact

‐1,E‐04 0,E+00 1,E‐04 2,E‐04 3,E‐04 4,E‐04 5,E‐04 6,E‐04

Ref.: CEM I CEM II B + X‐SEED Ref.: CEM I + heating

CEM I + X‐SEED

employee years/UB

Disposal

X‐SEED production

Precast

production (ev.

Heat curing) Cement II

Cement I

Transport

Materials Energies

15

Stakeholder Employees:

Professional Training

‐0,04

‐0,02 0,00 0,02 0,04 0,06 0,08 0,10 0,12 0,14 0,16

Ref.: CEM I CEM II B + X‐SEED Ref.: CEM I + heating CEM I + X‐SEED

EUR/UB

Further materials Disposal

X‐SEED production Precast

production (ev.

Heat curing) Cement II

Cement I

Transport Energy Comparison

Material Comparison

0,00 0,50 1,00

Employees

Users

Local and national Community Future Generations

International Community

Ref.: CEM I + heating CEM I + X-SEED

SEEBALANCE for cement additives X-SEED Nano-particulates are more sustainable

Socio-Eco-Efficiency

Reference: CEM I + heating

CEM I + X-SEED high SEE

low SEE medium SEE

 The X-SEED mix design has economical, ecological and social advantages

 Further information: http://www.basf.com/group/corporate/de/news-and-media- relations/science-around-us/concrete-components/info-box

17

Multi-Criteria Analysis vs.

Cost-Benefit-Analysis

Differences between CBA and MCA

CBA MCA

• CBA is based on economic efficiency criteria

• Alternatives are evaluated by performance criteria that are measured in money terms.

• It requires only quantitative data

• MCA incorporates other types of criteria than money terms

• Difficult to monetize criteria are assessed differently

• It evaluate both quantitative or qualitative data, or a combination of the two.

Advantages of Multi-Criteria Analysis (MCA)

• MCA enables a more realistic representation of the decision problem to be made, and in particular for the trade-offs to be made explicit.

• Although MCA is a structured approach, it is flexible enough to allow the use of value judgment.

• It is suitable for problems where money estimates of the effects are not readily available or not clear.

SEEBALANCE® – Nutzen für REACH?

SEEBALANCE kann in der Autorisierung adäquate Ergebnisse liefern

18

- Ganzheitliche Bewertung aller drei Dimensionen ist möglich

- Eine Umrechnung von einer in die andere Dimension erfolgt nicht - Unsicherheiten bei der Monetarisierung werden vermieden

- Verschiedene Kostenarten können erfasst und bewertet werden - Volkswirtschaftliche Faktoren können einbezogen werden

- Unterschiedliche soziale Effekte können in die Bewertung einbezogen werden

- Statistische Daten unterstützen die industrie-übergreifende ganzheitliche Betrachtung

- Darstellung aller Einzelergebnisse, Wichtungsschema führt zum Gesamtergebnis

- Gesamtergebnis unterstützt die Entscheidungsfindung - Relativer Vergleich als Basis

SEEBALANCE® – Nutzen für REACH?

SEEBALANCE ist in der Autorisierung verwendbar

19

 Die ist SEEBALANCE Analyse ein Instrument zur allgemeinen, umfassenden Bewertung von Nachhaltigkeit und kann auch zur SEA in REACH verwendet werden.

 Die SEEBALANCE Analyse als multikriterielle Analyse geht über REACH regulatorische Aspekte hinaus.

 Das Wichtungsschema kann von regulatorischen Anforderungen abweichen (was jedoch ggfs. adjustierbar wäre).

 Die SEEBALANCE ist eher geeignet für eine Autorisierung bei nicht kontrolliertem Risiko für den Verwender (non-adequate control route).

 Zur Abschätzung der ökonomischen Verhältnismäßigkeit in der Analysis of Alternatives (AoA) verschiedener Alternativen bei kontrolliertem Risiko

(adequate contol route bei vorhandenem Grenzwert) sollte ein weniger komplexes Verfahren bei der Zulassung als ausreichend erachtet werden.

Internal 20