Issue No.02 LIFE CYCLE ANALYSIS KEY POINTS: Life Cycle Analysis (LCA) is an objective process designed to assess systematically the total environmental impact of particular processes, products and materials from cradle to grave - from raw material extraction to final disposal. LCA is not new. It has, however, attracted a surge of interest in recent years. The methodology is still being refined and developed. The Australian packaging industry recognises its growing importance and is seeking a simple, standardised approach to LCA. LCA is an imperfect tool and just one of several methods used to assist environmental management. It is, nevertheless, becoming an important device for companies to identify any adverse environmental impacts of their operations and products. LCA can affect the competitive position of companies. It will also help consumers make more informed purchasing choices. For the last two decades there has been a growing recognition that the consumption of manufactured products has an effect on resources and the environment. A number of international organisations and private companies are developing LCA as a sophisticated analytical tool to assess environmental policies and management. What is it? Environmental effects occur at every stage of the "life cycle" of a product. They start with the extraction of raw materials from the ground, continue through the various processing, manufacturing, fabrication and transportation steps, and include consumption, recovery for reuse or recycling and ultimate disposal. The name "Life Cycle Analysis" or LCA now has widespread acceptance, although the terms cradle-to-grave analysis, eco-profile, eco-balance and environmental impact analysis, are also used. The output of a life cycle analysis is an inventory of resources consumed (energy and raw materials) and waste generated (as emissions to air or water and solid waste). To convert this inventory into the likely effect on the environment requires further evaluation and interpretation. This is known as life cycle assessment. LCA provides a framework to make sound environmental decisions, based upon reliable facts. This does not prevent LCA results from being misused. There have been several instances of selective or misleading interpretations. Like other scientific models, LCA will not provide an absolute and complete representation of every environmental interaction. A clearer understanding is developing about how to undertake and use LCAs. In particular, LCAs should incorporate • A well accepted methodology - As yet there is no agreed international harmonisation, although advances are being made in this direction through major industry and standards organisations. • Site-specific data - Generic industry or national data invariably mask large site specific differences. This in turn produces LCA results which are misleading for particular sites and of little use for environmental management. A need exists for reliable verifiable data, which are most likely to be collected by the company concerned. • Accessible methodology and data - The suspicion about the manipulation and misuse of data requires transparency in how the LCA was done and the sources of data used. What's in it? The first step in constructing an LCA is to ensure that the inventory phase is correct. For a particular product, this involves establishing: • A functional unit reference - In the case of packaging, data may be best represented by the weight or volume of goods packaged. • The system boundary - This critical step strongly influences the results of the LCA. Ideally all the product life-cycle stages and environmental inputs and outputs are included. In practice some compromises are needed - for example, whether to include the environmental impacts caused by the maintenance of a truck used to transport the product. It is usual to exclude environmental impacts such as these which, overall, are judged to be insignificant. • The data collection, collation and presentation - The unique thing about LCAs is that they are as much a tool for communication as for analysis. The requirements are clarity and readability, as well as completeness and technical accuracy. Following the LCA inventory the more contentious issues of classifying and valuing the environmental impacts need to be addressed. Assuming that there is agreement about the grouping of environmental concerns (greenhouse gases, photochemical oxidants, toxicity etc.), the impacts then have to be normalised. For example, a molecule of methane has a far greater greenhouse gas effect that a molecule of carbon dioxide. To some, valuation means a single value or index of environmental effect. It is however difficult, if not impossible, to equate the environmental significance of impacts in the air, water and land. It is more likely that the makeup of an acceptable balance of environmental effects will depend upon local or national values, and vary enormously from place to place and from time to time. The results of an overseas LCA are not transferable to Australia because the inputs, outputs and assigned values will vary with the mix of resources involved and local manufacturing practice. Already the LCA inventory approach can be used in a number of situations: • To deal with single issues, extravagant generalisations, or misleading competitor claims. • For customers requiring documentation of the environmental impacts involved in the manufacture of their packaging. • Eco-labelling and environmental choice labelling are based upon LCA. • As an environment management tool within companies, an inventory can identify areas of unnecessary environmental burden and likely cost-saving remedies. The LCAs can be used for life cycle improvement and will become an integral part of new product and process development. THE PACKAGING COUNCIL OF AUSTRALIA'S POSITION The methodology of LCA is still being perfected. LCA does not yet provide sufficiently hard, irrefutable evidence on which to make judgments. The guidance it offers is imperfect and should not be regarded as the final word. LCA is just one of several methods to improve environmental management, complementing other techniques such as environmental and waste audits. Because of the complexity of life cycle studies, another major challenge is to communicate findings in a way understandable to the general community. The Australian packaging industry is seeking to meet this challenge. LCA is becoming an increasingly important part of environmental management and improving business efficiency. Companies that can rigorously demonstrate that their processes and products result in real environmental improvements, will gain a competitive advantage. LCA will also provide additional information for consumers to assist them make informed purchasing choices. Read other Issues Papers: No.01 - "Combustion with Energy Recovery " No.03 - "Managing Packaging Waste in Europe - Lessons for Australia" No.04 - "Waste Management" No.05 - "Litter" No.06 - "Mandatory Deposits" No.07 - "Excessive Packaging" No.08 - "Recycling" No.09 - "Australian Packaging - How Competitive?" No.10 - "The Packaging Council of Australia" No.11 - "Mandatory Minimum Recycled Content" No.12 - "Eco-Labelling" No.13 - "Packaging - Ten Trends for The Next Ten Years" No.14 - "Packaging - It's Essential Role" No.15 - "The Internet - What it Means for Australian Packaging" No.16 - "Single, Active, Post-Materialistic, and Grey?" No.17 - "Digitisation in Printing - Implications for Packaging" No.18 - "Australian Packaging: Issues and Trends"