Product Innovation The Green Advantage An Introduction to Design for Environment for Australian Business Environment Australia,

The Design for Environment Context

In manufacturing, transportation, forestry, construction, energy, and other industrial sectors, mounting empirical evidence suggests that radical improvements in resource productivity are both practical and cost-effective, even in the most modern industries. Companies and designers are developing ways to make natural resources­energy, metals, water, and forests­work five, ten, even one hundred times harder than they do today.³
Clear themes emerging from legislation in Europe, the United States and, increasingly, Australia suggest that:

• the polluter pays;
• the producer bears responsibility for waste disposal; and
• the public should have access to information about the environmental performance of companies.

In addition, shareholders, consumers and employees are increasingly seeking improved environmental and social performance from business.
This is consistent with global moves by business, governments and communities towards achieving sustainability. The World Business Council for Sustainable Development coined the term 'eco-efficiency' to describe the efforts by businesses to take the environment into consideration in their operations.
Eco-efficiency is a combination of economic and ecological efficiency. It is basically about 'doing more with less' ­ producing more goods and services with less energy and fewer natural resources, resulting in less waste and pollution. Eco-efficiency directly links environmental performance to financial performance­ as a process is made more efficient, financial as well as environmental benefits will be realised.
As every organisation's operations are different, so too are the strategies and tools that may be used to achieve greater eco-efficiency. A suite of suitable tools is available to increase a company's eco-efficiency and include: DfE, environmental management systems, product stewardship programs, public environmental reporting, environmental auditing, environmental accounting and supply chain management.
DfE is a critical tool for manufacturers wishing to become more eco-efficient.

Eco-efficiency Principles

The eco-efficiency paradigm recognises that the earth is finite, its capacity for recovery from damage because of resource use is limited, and that public and other pressures to modify business behaviour will inevitably increase.⁴
The World Business Council for Sustainable Development identified seven key principles every business should take into account when developing products, introducing process changes or taking other actions with environmental implications. They are:

• reduce the material intensity of goods and services;
• reduce the energy intensity of goods and services;
• reduce toxic dispersion; enhance material recyclability;
• maximise sustainable use of renewable resources;
• extend product durability; and
• increase the service intensity of goods and services.⁵

Energy Rating Labels

It is now compulsory for manufacturers to place energy rating labels on a range of electrical and gas products. This requirement covers the following electrical appliances: dishwashers, airconditioners, refrigerators, freezers, washing machines and clothes dryers; and these gas appliances: room heaters, ducted heating systems and water heaters.
These energy label have a number (showing the approximate annual consumption of electricity or gas) and a star rating. The more stars (up to six), the more energy-efficient the appliance.
There is a similar, though voluntary, scheme for rating a product's water efficiency.
Through these schemes, products that have lower environmental impacts through improved energy and water efficiency are clearly differentiated. As a result, consumers are becoming aware of the savings they can make in running costs, greenhouse gas emissions and water use. This information is now in a form that can easily influence product choice.

What is Design for Environment?

DfE is the systematic application of environmental and human health considerations at the product design stage. DfE aims to avoid or minimise significant environmental impacts and increase resource efficiency at all stages of a product's life cycle­raw material extraction and processing, manufacturing, packaging and distribution, product use, and end-of-life.
Figure 1 shows the relationship between the stages of the product life cycle, and the inputs (ie energy, water and raw materials) and waste (ie emissions to air and water, and toxic/non-toxic waste) that impact on the environment. A dashed arrow between two stages indicates that this link, whilst growing, remains relatively weak for most materials.

Figure 1: Life cycle stages of a typical product and associated environmental impacts

Design for Environment Strategies

The National Centre for Design at the Royal Melbourne Institute of Technology (RMIT) has identified a series of DfE strategies to reduce environmental impacts at each stage of the life cycle (see Table 1). These strategies can be refined and developed to suit different products and organisations and form the basis of a company's DfE program.
It is important to remember that a DfE approach is straightforward and companies can start with relatively simple DfE strategies, and if required gradually build up to innovative developments in product design and function.
Table 1: DfE Strategies⁶

Raw material extraction and processing	Design for resource conservation Design for low-impact materials Design for biodiversity conservation
Manufacturing/packaging and distribution	Design for cleaner production Design for low-impact packaging Design for efficient distribution
Product Use	Design for energy efficiency Design for water conservation Design for minimal consumption Design for low-impact use Design for service and repair Design for durability
End of life	Design for reuse Design for re-manufacture Design for disassembly Design for recycling Design for safe disposal

Example­DfE Strategies⁷

Reducing impacts of raw materials

Strategies for reducing the environmental impacts of extracting and processing raw materials can be divided into those concerned with conserving resources using low-impact materials, and biodiversity conservation.
Design for resource conservation includes:

• using the minimum amount of material required for the function;
• using materials which are renewable; avoiding materials that deplete limited natural resources;
• using recycled and recyclable material; and
• using waste by-products.

Design for low impact materials includes:

• avoiding materials made from toxic or hazardous substances;
• avoiding ozone-depleting substances; minimising production of greenhouse gases;
• using materials with low embodied energy; and
• using materials that are easily re-used and recycled.

Design for biodiversity conservation include:

• avoiding materials which impact on biodiversity; and
• using materials that are sustainably produced

Reducing impacts of manufacturing and distribution

There are several ways in which companies can help maximise efficiency and minimise environmental impacts of the product life cycle during manufacturing. These include:

• minimising the variety of materials;
• avoiding waste of materials;
• reducing the number of components and assemblies;
• integrating functions;
• simplifying assemblies; and
• selecting low impact materials and processes.

The environmental impact of distribution can be reduced by:

• reducing the weight of the product and its packaging to save energy in transport;
• ensuring transport packaging is reusable and/or recyclable; maximising the efficiency of packaging; and
• choosing an efficient transport system.

The Benefits of Design for Environment

By reducing the environmental impacts of a product across its entire life cycle an organisation can strategically reduce environmental impacts and operational costs for both themselves and their customers, thereby creating significant marketing potential and customer loyalty.

Economic Benefits

Maintaining global competitiveness

Increasingly stringent environmental regulations in markets such as Europe, are resulting in products that have low environmental impacts throughout their entire life cycle. Australian-made products face tough competition from those produced overseas under stricter guidelines. DfE offers companies wishing to compete in the global market the means to meet these new standards for environmental quality.

Reducing production costs

Producing goods and services inefficiently costs more and reduces profitability. Disposal and control of pollution can be costly. Excessive waste during manufacturing indicates possible inefficiencies in production and poor use of raw materials. Implementing DfE can reduce pollution, improve manufacturing processes and minimise the use of toxic materials.

Improved strategic decision-making

An understanding of the product life cycle yields more information about product related inputs and outputs, allowing for more accurate planning and a more complete financial assessment of investment options.

Improving company value

DfE can improve a company's environmental performance and reduce exposure to liabilities for problems such as pollution and contamination, thereby increasing its financial strength and ability to attract investment.

Identifying new business opportunities

DfE encourages consideration of the function of a product or service. It can lead to new ideas for providing the same function with lower environmental impacts, possibly through a new product or service. The development of mechanisms to reduce environmental impacts can also lead to new products, services or markets.

Gaining advantage as a supplier

Large organisations and governments overseas and in Australia are beginning to require that their suppliers meet certain levels of environmental performance.

Operational Benefits

Improving relationships with regulators

Taking the initiative on environmental management can improve a company's record with environmental regulators, financiers and insurers. Adopting DfE demonstrates a company's credibility and commitment to reducing environmental impacts.

Improving liability management

DfE can help identify potential environmental or health and safety problems. It can also minimise the risk of future liabilities relating to producing, using, servicing and eventually disposing of the product.

Building competencies

DfE increases coordination and communication between different sections of a company. It encourages communication within an organisation and with suppliers and enhances other competencies, such as integrative management.

Improved staff morale

Research shows that corporate responsibility and environmental commitment actually strengthen an organisation's bottom line, primarily by aiding in recruiting and retaining employees. Adopting DfE can help improve staff morale by improving occupational health and safety and giving staff the opportunity to contribute to environment protection initiatives.

Marketing Benefits

Addressing customer needs

International and Australian studies of consumer attitudes consistently show that consumers are concerned about the environment. They see it as an important issue for governments and businesses to act upon and are prepared to change their own behaviour to protect the environment. Companies adopting DfE can promote their environmental performance.

Improved products and product differentiation

DfE results in products that have less impact on the environment and are superior in quality and marketability. Consumers tend to prefer such products not only because they are 'green', but because they may be more durable, of higher quality and cheaper to run. A company can differentiate its products by using environmental quality as a distinguishing feature.

Improved public relations

Adoption of DfE demonstrates a proactive approach to environmental management. A company adopting DfE can actively demonstrate and promote its environ-mental credentials and good corporate citizenship. DfE gives companies a way of presenting clear, accurate and reliable environmental information to consumers.

Consumers Care for the Environment

Consumer attitudes translate into purchasing decisions. Businesses that ignore consumer attitudes to the environment risk losing their competitive edge and market share.
The Environmental Monitor 2000 report, Global Public Opinion on the Environment, is based on a survey of approximately 34,000 citizens in 34 countries. It found that:

• There are significant levels of environmental activism in industrialised countries and surprising levels of latent activism in developing countries. Avoiding environmentally damaging products is overwhelmingly the most popular way of expressing environmental concern. One in four respondents avoided a product or brand specifically for environmental reasons in the past year.
• Six in ten Australians have refused or considered refusing packaging for environmental concerns in the past year.

The NSW Environment Protection Authority 1997 survey, Who Cares About the Environment, found that:

• 89 per cent of people were concerned about the environment a fair amount or a great deal; and
• the most common area of greatest concern was for future generations.