Rodrigo
Salvador
Federal
University of Technology - Paraná (UTFPR), Brazil
E-mail:
salvador.rodrigors@gmail.com
Antonio
Carlos Francisco
Federal
University of Technology - Paraná (UTFPR), Brazil
E-mail:
acfrancisco@utfpr.edu.br
Cassiano
Moro Piekarski
Federal
University of Technology - Paraná (UTFPR), Brazil
E-mail:
cassianopiekarski@gmail.com
Leila
Mendes Luz
Federal
University of Technology - Paraná (UTFPR), Brazil
E-mail: leila.mendesdaluz@gmail.com
Submission:
14/01/2014
Revision:
28/01/2014
Accept:
20/02/2014
ABSTRACT
The growing concern about the
development of sustainable production systems leads organizations to seek the
support of management tools for decision-making. Considering the whole life
cycle of the product, the Life Cycle Assessment (LCA) has an important role in
this scenario. The objective of this paper is to present, through the theoretical
discussion, the role of LCA in strategic planning of the organization. It showed
the enormous potential for decision making on the environmental aspect, but
also the critical factor in the development shares in the competitive context.
The use of LCA can reduce the environmental impacts of the system under study
(primary purpose) and guide the range of advantages in the fields of marketing,
legislation and environmental labeling, competitive strategies, efficiency resources
use of and others.
Keywords: Environmental
Strategic Planning; LCA; Life Cycle Assessment.
1.
INTRODUCTION
The
planning necessity in an organization, for any business or activity, is growing
towards the incessant technological development facing society today. It is not
just a differential, the planning necessity is a survival factor to plan and
control production processes, or even develop any company activities.
The
development of new strategies has been supported by the use of different tools,
whether in economic, environmental or social perspective. In environmental
context, is evident the use of tools that allow the measurement of the environmental
or sustainable performance of different system. In this sense, by corroboration
of several studies (BAILIS et al.,
2013; CHEN et al., 2012; MANDA; BLOK;
PATEL, 2012; GONZÁLEZ-GARCIA, 2012; GUTIÉRREZ et al., 2012; BRIBIÁN, CAPILLA; USÓN, 2011; SANTOS; TENÓRIO, 2010; BENETTO;
BECKER; WELFRING, 2009; RIVELA; MOREIRA; FEIJOO, 2007) the Life Cycle
Assessment (LCA) is shown as the most comprehensive tool for assessing the complete
environmental profile of products, processes and services.
In addition to the range of studies with
practical applications of LCA, also increasing approaches in order to discuss
the theoretical panorama of LCA, as shown by Cabeza et al. (2014); Piekarski et
al. (2013); Bribián, Usón and Scarpellini (2009); Benedetto and Klemes
(2009); Roy et al. (2009); Tillman (2000). Such studies highlight the quality
of implementation and the preoccupation with environmental aspects.
By increasing application of LCA in
environmental industry scenario, realize the knowledge demand of the
possibilities of LCA use, especially in the planning of environmental strategy
that the company can adopt. Nowadays, the environmental issues is seen as part
of the organization strategy, resulting in benefits on ecological side but also
in economic and social scenario, even in an indirect way (ABREU; RADOS;
FIGUEIREDO JÚNIOR, 2004).
Kobayashi (2005) says that a product may be
discarded before the real end of its economic life cycle, by economic
limitations of their functional characteristics, performance, or simply by not
presenting more the aesthetic tendencies desired by the user, due changes
and/or technological updating.
This highlights an unplanned use of resources
and the necessity of management strategies establishment in which the use of
tools, such as LCA, is an important way to planning, establishment and control processes,
products and services.
In this context, this paper aims to present,
by means of a theoretical discussion, the role of LCA on strategic planning definition
of the organization. It also shows the enormous potential of the tool for
decision making primarily in environmental aspects, but also as critical factor
in the development of actions in competitive framework.
2.
CONCERN ABOUT THE ENVIRONMENT AND SUSTAINABLE PRODUCTION
Society,
market and search for a development in an orderly manner, encourage businesses
to introduce sustainable practices in their systems, in order to attend the
environmental needs.
The social, technological, legal and ideological changing agreement
has influenced the companies regarding their mode of planning and action before
the market (ABREU; RADOS; FIGUEIREDO JUNIOR, 2004). The companies must, in an
entrepreneurial perspective, taking into account the use of tools in the incorporation
of a sustainable concept for the productive process (PIEKARSKI , et al., 2013).
As part of the business structure, the
environmental performance of a company is defined from the environmental
strategy that the same adopts and the current market scenario (ABREU; RADOS;
FIGUEIREDO JÚNIOR, 2004).
In
this way, according to Piekarski et al. (2013),
a broad overview of processes, strategic, enterprising and responsible must consider
the entire load involved in the life cycle of the product or service, not just
the environmental impact generated by the production process or even by the
extraction of resources needed for its production.
According
to Kobayashi (2005), tools that enable the emphasizing with environmental care has
an important role in the establishment of relations between a company and its
stakeholders. Moreover, nowadays, one of the most frequently used tools and
complete is the Life Cycle Assessment (LCA) (BOCKEN et al., 2012).
3.
LIFE
CYCLE ASSESSMENT (LCA)
The incorporation of sustainable aspects in
production systems can be guided by the use of management tools in order to
reach a better planning and practice of production. LCA is a tool that allows
to evaluate environmental impacts of a product, system or productive process,
throughout its entire life cycle (HAMZI; LONDICHE; BOURMADA, 2008; PEHNT,
2005).
From LCA application is possible to identify
potential environmental impacts and the hotspots (where are the greatest
contributions to the impacts) in order to pointing effective changes in
environmental impacts reduction (BRIBIÁN; USÓN; SCARPELLINI, 2009).
The first studies in respect of productive
environmental profile appeared on the 1960’s with the oil crisis and the
concern with the use of natural resources. At the start of the studies did not
show the complexity and enormous application that present today. These studies
were called to other names, as analysis of the environmental profile,
eco-balance, among others (ROY, et al.,
2009; CABEZA, et al., 2014).
These
studies have weakened in the coming years, but gained strength by around 1990
with the concern about the solid waste and the standardization of the
methodology by the International Organization for Standardization (ISO).
Nowadays, LCA studies are guided by two standards,
ISO 14040 (2006a), which dictates the principles and structure and ISO 14044
(2006b), the requirements and guidelines.
A study of LCA is composed by four interactive
phases, as illustrated in Figure 1, where changes in later stages may result in
changes to the previous ones and vice versa.
Figure 1 - Phases of an LCA and their relationships
Source: ISO (2006a)
The
first stage “Goal and Scope Definition” can be considered the most important
component of an LCA for the reason that the study is carried out according to
the declarations made in this stage.
3.1.
Definition of goal and scope
In this phase are defined the system to be
studied, their initial and final boundary, and the objectives to be achieved.
There is, also, the adoption of the functional unit (portion to which all data
are provided), in order to obtain a relationship between the data obtained and
make possible comparisons between different LCA studies (BENEDETTO; KLEMES,
2009). Is also defined the indicators of category used and the categories of
impact to be considered below.
3.2.
Life Cycle Inventory (LCI)
The inventory step comprises the collection of
data, of which all relating to inputs (water, raw materials, energy, etc.) and
outputs (products, co-products, waste and emissions to air, water and soil) of
the studied system (CABEZA, et al. , 2014).
According to Roy et al (2009), the collection of data may become less heavy if there
is a basis for reliable data available, with data of generic processes, such as
production of electric energy.
3.3.
Life Cycle Impact Assessment (LCIA)
This
phase of LCIA is the core of the study, where occurs the qualification and
quantification of the impacts of the system, based on the indicators (i.e.:
resource consumption, emissions) and categories of impact (i.e.: global warming
potential, ozone layer depletion, eutrophication) previously proposed and in
agreement with the data obtained in the phase of LCI (CABEZA, et al., 2014).
Tillman (2000) says that in this phase is held
the allocation process, responsible for proportional distribution of the burden
assigned to the system. When there is no ramification of the productive chain
by the formation of co-products not considered in the study, for example.
3.4.
Life Cycle Interpretation
The interpretation, the final step of a LCA,
provides an overview of the conclusions, limitations and recommendations obtained
in LCA study. It is from that occurs to decision-making by aligning the results
found when planning the company in order to achieve the reduction of impacts
identified.
For Basson and Pietre (2007), in different
perspectives, the results of the LCA can serve as a basis for the
decision-making process where, according to Roy et al. (2009), these guide the process of identifying the parties
where improvements can be made and achieve better results.
3.5.
Main considerations of LCA tool
The LCA toll can act in several fields. Have being
responsible for environmental improvements in civil construction sectors (THIEL,
et al., 2013), automotive industries (CHEN
et al., 2012), pulp and paper
industries (BOSS; BLOK; Patel, 2012), industry of coal (BAILIS, et al., 2013), of wood panels (BENETTO;
BECKER; WELFRING, 2009) and many others.
Recently,
the LCA has won recognition as a tool for measuring environmental performance
both within the public sector as in private (BASSON; PETRIE, 2007). For Löfgren,
Tillman and Rinde (2011) LCA is the more important methodology in current environmental
management.
4.
ENVIRONMENTAL
ISSUES ON ORGANIZATIONS
The environmental pressures has influence in
performance and action approach of organizations. The environmental impact of production
system, environmental legislation and the stakeholders are the main factors of influence
in this approach of planning and action. Accordingly, the organization can
identify its position regarding the environmental aspects of productive process
and define its planning to draw prospects in environmental scenario (MURRAY, et al., 2006; PORTER, 1990).
In addition, it should be consider the difficulty
faced by organizations in practice the theoretical baggage of ecological change,
second Brandalise et al. (2009),
taking ahead effective measures toward environmental improvement.
In this aspect, as well as the economic
sphere, in a social context the community that involves the physical structure
of the business can also influence on environmental performance results, once
that actions affect the environment in the region bring consequences to economic
and social spheres.
Abreu,
Rados and Figueiredo Júnior (2004, p. 147) say "when the environmental
requirements of the interested parties are effective, its interfere in the
strategic decisions of organizations and can be considered as essential
elements in the quest for sustainability".
In this panorama, Teixeira and Azevedo (2013)
also disclose that, by either legislation order or other forces, the
implementation of changes in order to adapt the organization management to new
demands leads to a values change incompatible with current and future principles,
"more durable".
To sustain the entire external load of
influence, the company needs to find ways to evaluate its structure and adopt
strategies to overcome its weaknesses and strengthen it, or even keep it in the
market.
5.
OVERVIEW OF ENVIRONMENTAL ASSESSMENT MODELS
In a general way, the models of performance
evaluation does not take into account the environmental performance of the
company. Abreu, Rados and Figueiredo Junior (2004) argue that the current
models of analysis of structure takes into account only the financial aspect in
determining the action profile and strategy of competitiveness.
Abreu, Rados and Figueiredo Junior (2004)
propose a model of analysis of the structure in an environmental perspective,
which is dependent on the context in which marketplace is inserted, once that
environmental requirements are part of the profile of planning and strategy of
the company.
The model Structure-Conduct-Performance (SCP)
(SCHERER; ROSS, 1990) is based on a structure of supply and demand, taking into
account "coincidences", which the authors called "external
shocks", of which innovations, social and legal changes, that influence
the strategy of the company.
Abreu (2001) considers a triple model, Triple
Structure-Conduct-Performance (T-SCP), resulting in a performance that
encompasses three pillars of the same importance: social, economic and
environmental.
The
model Environmental Structure-Conduct-Performance (E-SCP) (ABREU, 2001)
provides a classification regarding the environmental performance of the company
that is proportional to the development of the process of quantification of
their own performance.
The company will have, then, a strong
environmental conduct when carrying out the measurement of its environmental
performance and consequently develops strategies in this field.
The model Pressure-State-Response (PSR) (OECD,
1998), from the environmental performance sculpts the priorities for action in
order to achieve reduction of environmental impacts and conservation of natural
resources integrated actions in individual and collective scope.
In order to evaluate the organization situation
forward to panorama of environmental market, Abreu (2001) proposed a
correlation matrix (Figure 2) between the industry pressure and the
environmental conduct adopted.
Figure 2 - Correlation matrix between the industry pressure and
environmental conduct
Source: Abreu (2001)
The matrix analysis shows that if the
environmental conduct is strong, the organization will suffer less external
pressure, being considered at least as a environmental responsible company. If
the company do not care about some environmental concern will be considered indifferent,
being sufficient an increase in external pressure to become a defeated company.
Taking into account the concern with market
pressures, the development of a strong general structure can determine the
establishment and permanence of the company within the competitive scenario. In
this regard, Basson and
Pietre (2007, p. 168) affirm "a large number of choices of structure and
parameters models are based on decision models and LCA".
As seen in the matrix of environmental
structure of Abreu (2001), in Figure 2, the insouciance with the environmental
conduct can make the company defeated. Likewise, in addition to the
environmental aspects, the LCA can be used as an aid in the economic field and
bring benefits in this regard.
6.
ECONOMY,
COMPETITIVENESS AND LCA
The interaction with external factors has influence
in action mode of organizations. Each organization will present a specific
performance, according to their ability to deal with externalities and their
capacity to adapt (PORTER, 1980).
According to Abreu, Rados and Figueiredo
(2004), the parameters that indicate the competitive potential of a company are
primarily related to its basic economic structure and also, but not only, with
the mode and strategy action of its competitors. The same authors affirm that
the development of strategies seeks to divert the company of consequences of their
competitor actions, as well as achieve a superior performance.
Regarding decision making, is necessary to
identify if decisions are in accordance with demand and values of stakeholders.
As well as aligned same aspects of the organization in order to put the company
ahead of the market (BASSON; PIETRE, 2007).
Thus, in the current global productive scenario,
the development of strategies in environmental management can result in
economic benefits and competitive within the market.
The LCA, in addition to obvious reduction in
environmental impacts, can act in the processes improvement driving benefits of
economic order or even indicating ways to obtain these, as for example reduction
of energy consumption (MANDA; BLOK; PATEL, 2012) and improvement in overall
efficiency of the process (BRIBIÁN; CAPILLA; USÓN, 2011), among others.
7.
LEGISLATION
AND LCA
In the view of Abreu, Rados and Figueiredo
(2004), rigid regulations exert a greater influence on the activities of a
company, rising the concern with the environmental aspects; otherwise, the
attention given to this aspect is not very relevant. According to Porter
(1980), a robust environmental legislation can lead to new practices,
innovation, which can result in improvement of the factor of competitiveness of
the company, bringing benefits to marketing, as discussed in the next section.
In the study of Abreu, Rados and Figueiredo
(2004) can be noticed that the pressure exerted by the legislation in an
industry is directly proportional to impact of activity that this industry performs.
In addition, was note that not only
environmental protection agencies and inspection agencies are important in environmental
actions making. The stakeholders, as in the study of Boss, Blok and Patel
(2011), are often responsible for encourage, or even require, the use of
environmental policies for maintenance of trade relations.
Many customers may require the presence of
environmental labeling and other actions in order to create, or maintenance, the
business bond (CLIFT; WRIGHT, 2000).
Is possible understand, therefore,
that the LCA may play an important role for the strategic management of a
company in terms of the environment, supporting the management of productive
activities and business relations.
8.
MARKETING
AND LCA
In optics of Piekarski et al. (2013), the LCA can be utilized as support to the overall
planning of the company. LCA can used in the motivation of entrepreneurship,
marketing strategies, in the assessment of new production systems and improving
the performance of production processes, in addition to cooperate in the design
and development of products.
Marketing strategies can derive the range of
environmental labels, in which the LCA can aid in obtaining. In a broader
vision, the environmental labelling, in addition to the compliance with the provisions
imposed by legislation, can provide credibility to the company. Both in
relation to consumers, as the suppliers and partners, the credibility coming
for environmental labels is a positive aspect through the vision of sustainable
involvement. Such practices are encouraged by market forces and interest of
consumers (KOBAYASHI, 2005).
9.
INNOVATION AND LCA
Furthermore,
LCA can act on the innovation process and reduce environmental impacts (LUZ,
2011). With the identification of critical points, guided by innovation, new
products, processes, or even new practices are responsible for reduction of
their respective impacts, supplying sustainable and economic aspects and given
the constraints of the market (PIEKARSKI, et
al., 2013).
The innovation can be applied in the design of
new products, processes, services, as well as on the improvement of already
existing (OECD, 2005). On the other hand, LCA operates in environmental
parameters by assigning characteristics ecologically cleaner to the products,
processes and services.
Vinodh and
Rathod (2010) claim to be possible linking environmental and economic requirements
in the stages of development of a product. In this way, is noted the use of LCA
indicators in order to reach the integration of different spheres of
sustainable development to reduction of environmental impacts. The study of Luz
(2011), in the construction of a model linking innovation and LCA, was identifying,
through a statistical analysis, critical points of greater correlation between LCA
and innovation indicators of decision-making support in reduction of impacts.
This study allows, therefore, take into account environmental and economic
aspects of the company, derived from innovative organization profile.
Kobayashi (2005) reveals that the
characteristics, environmental requests and the user requirements do not always
are aligned at the start of a product/process project. It is need that all
these informations be in accordance with the values and company parameters.
Also, is essential a plan that takes into account both the market demand, the
result of the behavior and consumers desire, as well as the legislation that
reigns the care with the environmental aspects.
10. STRATEGIC DEVELOPMENT AND LCA
In the quest for a sustainable development, Saints
and Souza (2011) pointed out the Strategic Environmental Assessment (SEA) as
one of the tools that plays an important role in the organization planning.
Complementing, for Piekarski et al (2013),
the economic and social development can be supported by entrepreneurial
actions, including new tools that will assist in organization strategies.
In this sense, Pinto-Varela, Barbosa-Pódova and
Novais (2011) worked on formulation of a programming model in order to take
into account economic and environmental aspects, using LCA in combined form in
the supply chain. Thus, evidencing once again, the concern with environmental
aspects linked
to productive systems, with LCA utilization on planning and strategy of the
organization.
Basson and Pietre (2007) consider the use of
LCA indicators as extreme value in the model formulation, as a guide for decision-making.
For Piekarski et al. (2013) the use of sustainable tools in an entrepreneurial
approach can be used in order to reach competitive advantages, supporting in
the decision-making process, especially in the areas of processes and
operations.
In search for sustainable practices in the
industry, for Kobayashi (2005), the LCA has an important role as a tool for
environmental planning, at different levels. This fact corroborates with the
idea of Benedetto and Klemes (2009) about the use of methodologies of life
cycle in different levels, which is demonstrate in Figure 3.
Figure 3 - Different levels of implementation of methodologies for
life cycle
Source: Benedetto and Klemes (2009)
Taking into account the entire life cycle of a
product, the LCA provides a complete view of the panorama of environmental
system under study (BOCKEN, et al, 2012). In the opinion of Roy et al. (2009), LCA is rapidly developing and
becoming an important tool for the industry and the environmental sciences.
Furthermore,
LCA can serve as an important information source, being a great assistance to
processes and management in a company (PIEKARSKI, et al., 2013). Primarily as to
decision-making under environmental scenario, in addition to acting in value generation
for the organization, guiding process improvements, operations management and
strategic planning.
Bribián, Capila and Usón (2011), in a comparative
LCA study, evaluate the eco-efficiency of materials used in civil construction,
between commonly materials and eco-materials. The results showed that the use
of eco-innovation in order to substituting finite natural resources per raw
materials derived from waste generated in other production processes, among
other procedures, presents real capacity of impacts reduction and improving
efficiency. Moreover, its encourage competition among manufacturers to achieve
products more eco-efficient and the utilization of environmental declarations.
It is evident different approaches resulting from LCA application, guiding the impacts
reduction on resources consumption and others factors of competitiveness.
The necessity to consider the social and
environmental aspects in a productive process gains support by LCA, in the
management of resources and waste, and to aid the development of strategic
plans (PIEKARSKI, et al., 2013).
Based
on a study of the analysis of uncertainties for decision-making, Basson and
Petrie (2005) emphasize the importance and the differential use of LCA in decision-making
based on environmental informations of the system.
Kobayashi
(2005) says in a conscious environmentally business system, it is important to
implement effective alternatives in life cycle, reusing components and modernizing
of products. In this way, for Bocken et al.
(2012), the LCA can give support to decision-makers regarding environmental
characteristics of the process in strategies definition on sustainable basis. Thus,
the LCA can be used as a tool for decision-making (BORGHI, et al., 2007;
TILLMAN, 2000).
The LCA can assist in various aspects of
planning and strategies definition throughout the production process. Moreover,
LCA has applied in production, costumer relations and merchandising aspects. These
latter aspects are able to provide benefits through results found by LCA, being
useful for strategies formulation by decision-makers.
11.
EMPIRICAL FINDINGS SUPPORTING LCA FOR
STRATEGY
In
order to cooperate with previously theoretical discussions, this section
illustrate empirical findings of LCA application in different areas of business
strategy.
At
first, Chen et al. (2012) worked with evaluation of environmental
sustainability through LCA. Was replaced the energy matrix of motor vehicles, changing
fossil fuels use for hydrogen engines, given by renewable energy technologies.
The technology change caused a decrease of greenhouse gas emissions resulting
in environmental impact reduction. The environmental management of company studied
has improved and was possible reach improvements in the social aspect.
Moreover, the use of a new technology puts company ahead in the market by
pioneering.
In a
pulp and paper industry, was applied the LCA in a comparative way. Manda Blok and
Patel (2012) compared new coatings and different types of cellulose with
conventional process to assess the environmental impacts and possible gains in
paper production. The study shows that after rearranging production strategy,
with changes in technology process, was possible a reduction of around 10% of
global environmental impacts compared to traditional process.
For
a modular wooden playground, a LCA study was conducted by Gonzalez-Garcia et
al. (2012) and from LCA results was opted for redesign the product. Changes
were made in the areas of Research and Development, where occurred the
substitution and reduction of raw materials and was optimized the supply chain
through combined maritime and road way for transport and distribution.
In
a coal industry, Bailis et al. (2013) conducted a comparison of the use of
conventional furnaces and hot-tail kilns. By LCA, was possible to optimize environmental
management of company, employing an unconventional technology (hot-tail kilns)
which resulted in reducing impacts. Additionally, it was also achieved economic
advantage for the reason that in conventional furnaces, the gases of pyrolysis
for charcoal production is released directly into the atmosphere, as by the use
of hot-tail kilns these gases are easily caught and can be used in power
generation in other process steps.
Gutiérrez
et al. (2012) conducted another LCA study in a lime industry. The study aimed
to quantify the environmental impacts of lime production in an industry in Cuba
through the LCA methodology in evaluating the cradle-to-gate. Also, was
established a baseline for performance improvement by comparing the
environmental impacts of industry in Cuba with a Swiss (industrialized country)
plant. Empirical findings of this study revealed the possibility of
improvements in process management and environmental management system. The
most significant improvements in environmental performance and cost savings can
be achieved by improving the energy efficiency in the calcining stage, which is
partially achieved with moderate investments.
In sector of wood-based panels,
Silva (2013) and David et al. (2009) point out environmental and social
problems related to the emission of free formaldehyde, both during production
and during use of panels. In this case, LCA guide the establishment of cleaner
or greener production strategies and review of regulatory aspects (or policy
formulation), by the broad view that LCA can offer.
It
is evident, therefore, that the empirical findings and possible simulations of
LCA studies can guide processes improvements in addition to environmental,
economic and social benefits (MANDA; BLOK; PATEL, 2012; BAILIS, et al., 2013). In
this sense, LCA is able to guide the definition, management and implementation
of sustainable strategies in different fields (BRIBIÁN; CAPILLA; USÓN, 2011).
12.
FINAL CONSIDERATIONS
The increasing concern with environmental
issues shows that the organizations require themselves (and due to external pressures)
a conduct more sustainable. This fact implies in a best action planning thought
on environmental standpoint, nevertheless not allowing affect the survival
economic characteristics of organization.
In strategies definition, either short or long
term, LCA shows as an important tool for company management. LCA can be
responsible for guiding actions for the impacts reduction in the studied
system, and may be used in accomplishment of legal requirements under
environmental scenario.
The LCA can, also, be applied as a
competitive advantage by means of possible environmental labelling, strategies definition
in marketing, innovation and mainly in decision-making, encompassing all these
issues. In a comprehensive manner, LCA plays as facilitator in decision-making,
Especially, the discussion of this paper
provides to industrial scenario an enlightening overview of LCA applications
possibilities in different spheres of sustainable development. With this, it
can be observed advances for the organization, by the support in
decision-making, as well for environment and, consequently, for society.
ACKNOWLEDGMENTS
The authors would like
to thank the financial support under Fundação Araucária and CAPES/CNPq
(National Council for Scientific and Technological Development).
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