MASTER OF BUSINESS A DMINISTRATION AND EN GINEERING [611899]

UNIVERSITY “POLITEHNICA” OF BUCHAREST
FACULTY OF ENGINEERI NG IN FOREIGN LANGUA GES
MASTER OF BUSINESS A DMINISTRATION AND EN GINEERING

MASTER DISSERTATION

Bucharest
2017
Project coordinator:
Conf. Dr. Dana
DESELNICU
Student: [anonimizat] “POLITEHN ICA” OF BUCHA REST
FACULTY OF ENGINEERI NG
IN FOREIGN LANGUAGES
MASTER OF BUSINESS A DMINISTRATION AND
ENGINEERING

Life-Cycle Assessment studies for
establishing the carbon footprint of
products

Project coordinator Student: [anonimizat]
2017

Dissertation, Lucian ANGHEL, Faculty of Engineering in Foreign Languages, UPB, 2017

“POLITEHNICA” UNIVER SITY OF BUCHAREST
FACULTY OF ENGINEERI NG IN FOREIGN LANGUA GES
MASTER OF BUSINESS A DMINISTRATION AND EN GINEERING

Approved
Director of department:
Prof. dr. ing. Adrian Volceanov

MASTER DISSERTATION THEME FOR :
Lucian ANGHEL

1. Dissertation title:
Life-Cycle Assessment studies for establishing the carbon footprint of products

2. Initial design data:
Circular Economy principles
Sustainability and Zero Waste principles
Life-Cycle Assessment global princip les
Case study

3. Student: [anonimizat]:
Integration of Circular Economy principles in the “Zero Waste” general target
Comparison between actual economy flow and circular economy project
“Nail” case study designed with GaBi Software for L.C.A.

4. Compulsory gra phical material:
Block schemes, flow diagrams, charts, design diagrams

5. The paper is based on the knowledge obtained at the following study courses:
International Trade and Transaction
Industrial Marketing and Strategic Management

6. Paper development enviro nment:
U.P.B Library; GaBi Software simulation tool

7. The paper serves as:
Didactic purposes

8. Paper preparation date:
June 2017

Project coordinator Student: [anonimizat], Lucian ANGHEL, Faculty of Engineering in Foreign Languages, UPB, 2017

Academic Honesty Statement

I, Lucian ANGHEL, here by declare that the work with the title “ Life-Cycle
Assessment studies for establishing the carbon footprint of products ”, to be openly
defended in front of the master dissertation examination commission at the Faculty of
Engineering in Foreign Languages, University "Politehnica" of Bucharest, as partial
require ment for obtaining the title of M.Sc. in Business Administration and Engineering
is the result of my own work, based on my research.

The dissertation, simulations, experiments and measurements that are presented are
made entirely by me under the guidance of the scientific adviser, without the implication
of persons that are not cited by name and contribution in the Acknowledgements part.

The dissertation has never been presented to a higher education institution or
research board in the country or abroad.

All the information used, including the Internet, is obtained from sources that were
cited and indicated in the notes and in the bibliography, according to ethical standards. I
understand that plagiarism is an offense and is punishable under law.

The re sults from the simulations, experiments and measurements are genuine.
I understand that the falsification of data and results constitutes fraud and is punished
according to regulations.

Lucian ANGHEL 14.06.2017

Dissertation, Lucian ANGHEL, Faculty of Engineering in Foreign Languages, UPB, 2017

Dissertation, Lucian ANGHEL, Faculty of Engineering in Foreign Languages, UPB, 2017

Table of Contents

1. Introduction . . . . . . . . . 1

2. Historical background. Principles of Life -Cycle Assessment . . 3
2.1. Biomimicry and Cradle to cradle concepts . . . 3
2.2. Circular Economy Principles . . . . . 4

3. Sustainability and Zero Waste. Greenhouse Emissions . . 7
3.1. Planet’s Welfare . . . . . . . 7
3.1.1. Environmental Sustainability . . . . 7
3.1.2. Economic Sustainability . . . . 8
3.1.3. Social Sustainability . . . . . 8
3.2. Zero Waste . . . . . . . 8
3.3. Greenhouse emissions (gasses) . . . . . 11
3.4. Climate change . . . . . . . 15

4. Life-Cycle Assessment. Purpose and design . . . . 17
4.1. Applications of LCA . . . . . . 18
4.2. LCA drawbacks . . . . . . . 20
4.3. Execution of an LCA study . . . . . 21
4.4. Guidelines for an LCA standard study . . . . 24
4.4.1. Process rules according to the decision situation . 24
4.4.2. Process rules based on guidelines for LCA phases . 25
4.4.3. Process design based on general guidelines . . 25

Dissertation, Lucian ANGHEL, Faculty of Engineering in Foreign Languages, UPB, 2017

4.5. LCA character istics . . . . . . 27
4.5.1. Goal and Scope . . . . . . 27
4.5.2. Inventory analysis . . . . . 28
4.5.3. Impact assessment . . . . . 28
4.5.4. Interpretation . . . . . . 29

5. Application. LCA “Nail” Case Study . . . . . 31
5.1. GaBi Software tools and models . . . . . 31
5.2. Life-cycle assessment results . . . . . 35

6. Conclusions . . . . . . . . 47

References . . . . . . . . . 49

Annex . . . . . . . . . . 51

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1. Intro duction

Surroundings have always helped people develop and evolve. Ever since the
beginning of modern tech, more and more equipment is produced, in order to en hance and
help humans. Although the ever-growing demand in work tech established new boundarie s
for modern society, there is a great drawback to all the mind -blowing inventions that are on
the market, and that is pollution . The discussion about pollution and its remedies is a broad
area and it is filled with many concepts, challenges, and ways to make the world better . This
word is so spread across the world right now, that it began turning powerful wheels in the
process of evolution. Many concepts arose from these, better yet, many ideas and
revolutionary ch ange s.
As such, one of the most importan t defined concepts out there, is the concept of
Circular economy . What exactly is circular economy is to be discussed in -depth in the
following pages. It isn’t of much resemblance with today’s already implemented plan . On
short, it is a type of economy tha t is restorative and regenerative by design and it aims to keep
products, components and different materials at their full utility and value at all times,
focusing on the distinction of technical and biological cycles.
Today’s society relies on “take, mak e and dis pose” economic idea; this means it relies
on large quantities of cheap and easily accessible materials and types of energy and, as it can
clearly be seen just by looking around , the limits of this idea are on their superior limit. A
circular, more attractive and viable alternative of business has already made its presence in
today’s society.
“Waste is food” is one of the funding principles of circular economy. The biological
and technical elements of a product are designed on purpose, to fit withi n a circle, a close
loop, and can be reused again and again. The biological nutrients are non -toxic and can
simply be composed. The technical ones, the man -made materials can also be used again with
minimal energy consumption. Humanity needs to focus on mo dularity, versatility and
adaptiveness in an evolving world. Lon ger lasting products are expected and in continue
developing stages; ageing equipment should not be swapped to new gadgets, it should be
restored and upgraded, thus extending the overall effic iency. All these efforts are made by
society and people in order to achieve the zero-waste goal.
Nature already came with a lot of upgrades, so, all people need to do is try to imitate it
at smaller scales, and to apply the core principles of recycling at every step, while still
maintaining the same level of comfort and stability with which they are so used to . Science
encompasses sufficient information related to “how things work” and today’s trend s and aim
are focused around renewable energy sources. So where does this fit in the discussion about
the circular economy? Well, its founding treats the exact elements that were mentioned above
and it shall be further explained in this document.

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2. Historical background. Principles of Life -Cycle
Assessment

2.1. Biom imicry and Cradle to cradle concepts

Back in 1976, Walter Stahel and Genevieve Reday described their vision of an
economy in loops and its impact on jobs, economic competitiveness, resource saving,
sustainability etc. Circular economy is actually an indus trial economy (grouping more than
consumption of services, goods, fuels, energy) that is pollution free and waste less by design.
Materials in use are biological nutrients and technical nutrients; these two categories are
designed to circulate in a contigu ous manner inside a production system, but without
interfering with the biosphere.
The purpose of this project is not to dig deeper into details for the moment, but it
should also be mentioned some important information related to the principles of the
economy framework, which are Biomimicry , Industrial ecology , cradle to cradle and blue
economy.
In a nutshell, Biomimicry is a discipline that takes nature’s best ideas and tries to
imitate them in a creative and problem -solving manner and as an example, we can take the
deep study of a simple leaf, and go way up to the invention of the solar panel. We can regard
Biomimicry as innovation inspired by nature.
Industrial ecology is composed by studies of energy flows, materials, structures of
industrial complex es and all man -made tech. They all play important roles in a shaped
system, trying to be similar to nature’s already living systems – and it also has in focus the
social wellbeing1.
Cradle to cradle is a concept created by Walter R. Stahel and it relates t o
sustainability, life extension of goods, reuse and repair, upgrade and develop. Its idea’s
purpose is to create a strategy for waste prevention, job creation a resource re -utilization ,
reducing drastically the standard consumption2.
Blue economy is a con cept initiated by Gunter Pauli, and it is an open -source
movement which brings together case studies and reports; its official manifesto states “using
the resources available in cascading systems, (…) the waste of one product becomes the input
to create a new cash flow3.
In order to continue the previous idea about circular economy, it should be added that
it is a continuous positive development cycle that preserves and enhances natural capital,

1 International Society for Industrial Ecology – Home: http://www.is4ie.org/
2 Cradle to Cradle | The Product -Life Institute: http://www.product -life.org/en/cradle -to-cradle
3 Blue Economy: Green Economy 2.0” http://www.blueeconomy.de/

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minimizes system risks – by managing stocks and flows – and op timizes resource
consumption. It is applicable at each and every scale.

2.2. Circular economy principles

In the next paragraphs, the focus will shift a moment on its three principles. Circular
economy provides multiple value creation structures that are decou pled from the
consumption of finite resources. In a true circle, consumption happens only in effective
biological cycles. So resources are regenerated after some time, in this bio -loop, or they are
recovered and restored, if they are related to the technic al part. Nature regenerates its
resources, through a complex, yet ingenious way. The s ame is true for humans with their
tech; with sufficient energy, they can recover and recreate materials, on any considered
timescale.

Principle 1. Control of finite stoc ks and balancing renewable resource flows.
When resources are needed, the circular system selects which of them are to be wisely
used and also chooses the technical procedures through which they have to pass; in this way,
the consumption is optimized and t he natural capital is also enhanced, because of the
recreating/regenerating effect that comes along with resources use. (Soil is a good example)

Principle 2. Circulating materials used at their peak utility both tech and bio.
We are talking about redesign ing, remanufacturing, refurbishing and recycling; all
done in order to keep components and materials circulating and contributing to the economy.
Circular structures use tighter loops whenever they can, in order to preserve more energy and
labor. They also force extend the lifetime of products and aim at optimizing re -usage of those
products, should they fail.

Principle 3. Revealing and cutting out of the scheme negative elements.
Reducing damage to human utility: food, mobility, shelter, health, education and
entertainment; better management of land use, air and water use, less noise pollution,
stopping of toxic releases and ultimately, preventing drastic climate change4.

4 http://www.ellenmacarthurfoundation.org/assets/downloads/TCE_Ellen -MacArthur -Foundation -9-Dec-
2015.pdf

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Figure 1 . Outline of a circular economy

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The Circul ar Economy offers an opportunity to reinvent the world’s economy, making
it more sustainable and more competitive. This will bring benefits for all businesses,
industries and citizens alike. Ambitious measures are already implemented in order to reduce
waste and boost recycling5.

5 http://ec.europa.eu/environment/index_en.htm

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3. Sustainability and Zero Waste. Greenhouse emissions

The study takes us further to the concept of Sustainability . The definition might seem
simple, but there are as many as 200 plus ways of defining what sustainable development is.
The most common definition, however, was defined by Brundtland Commission in
1987, which stated: “ Sustainable development is development that meets the needs of the
present without compromising the ability of future generation to meet their own needs ”.

3.1. Planet’s welfare
Society needs to constantly keep a receptive eye on the planet’s welfare, in order to
give the next generations, the opportunities that exist today. True sustainability may be
reached only through care and innovation.
Similar t o the Circular economy model, sustainability has three main pillars that we
shall mention.

Figure 2. Venn diagram of t he three sustainability pillars

3.1.1. Environmental Sustainability
The first pillar refers to the fact that humans are liv ing within the means and support
of their natural resources. To reach system sustainability, they need to ensure that they

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consume resources – materials, energy, fossil fuels, land, water etc. – at a sustainable rate.
Some of these resources are more abund ant than others but they need to consider a solid
utilization plan and prevent the damage caused by excessive extraction. It needs to be kept
within circular economy principles. It should also be mentioned that Environmental
sustainability is not eq uivalen t to full sustainability .

3.1.2. Economic Sustainability
The second pillar requires that a business or an industrial process uses its resources
efficiently and responsibly, so that it can operate in a sustainable manner, to consistently
produce operational prof it. Without profit, a business would cease to exist, thus would be
unable to sustain its activities in the long run.

3.1.3. Social Sustainability
The third and last pillar represents the ability of a society, or of a social system, to
persistently achieve a goo d social well -being. This ensures that the social status of a
community can be maintained in the long term.
The key to the concept of sustainability is to properly balance these three pillars, as ideally
shown in the diagram above. An equal percentage of e ach, correlated each with the other can
reach true sustainability and could satisfy the principles of Circular economy6.

3.2. Zero Waste

The next topic that is going to be explained in this chapter is entitled Zero Waste . It
surely is linked to Circular Econ omy and Sustainability . Actually, they work together nicely.
The circular economy strategy presents many challenges regarding design, use and
handle of resources and consistent planning. While developing new tech and new ideas,
digging deeper into nature’ s freely given elements it is critical to have restrictions; local and
regional waste management systems are designed and built to be adaptable and flexible in a
manner that they become the regional circular management systems of tomorrow.
City waste redu ction strategies are essential in today’s almost decadent society. The
concept came into the spot light a few decades ago, when burning some waste in order to
produce heat was a good idea. So, heat and steam generates electricity and so on. But the
yield w as small, and though some countries adopted and wasted considerable amounts of

6 http://www.circularecology.com/

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money on developing such infrastructures. Nowadays they import waste to feed that
infrastructure, but the processes are inclined to forever destroy some of the technical nutrien ts
and permanently damage biological nutrients. This type of infrastructure is an impediment to
the circular economy and it will probably crash down at any moment. One clear way to reach
zero waste is to recycle everything. Once all the waste is gathered, it is advisable to invest it
into a burning process in order to reuse a large amount of its previous potential. It is a really
complex procedure to separate materials and then recycle them into usable new categories;
so, complex goes hand in hand with attr active business and profit7.

The illustration below shows today’s current flow regarding products, materials and
waste. It should be notice d that there are as many circles as there are stages of a product. It is
a clear example of “how not to do it” and it aims to create a contrast with the next illustration,
in the next part.

Figure 3. Today’s material flow

7 http:/ /www.sustainablecitiesinstitute.org/

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Zero waste is a concept which encourages redesign of resource life cycles, so that all
is used again. No trash is sent to landfills and incinerators.
It mimics nature and its processes. The internationally recognized definition of “zero
waste” adopted by the Zero Waste International Alliance (ZWIA) is: "Zero Waste is a goal
that is ethical, economical, efficient and visionary, to gui de people in changing their lifestyles
and practices to emulate sustainable natural cycles, where all discarded materials are
designed to become resources for others to use.

Zero Waste means designing and managing products and processes to systematically
avoid and eliminate the volume and toxicity of waste and materials, conserve and recover all
resources, and not burn or bury them.
Implementing Zero Waste will eliminate all discharges to land, water or air that are a
threat to planetary, human, animal or plant health8. Zero waste can represent an economical
alternative to waste systems, where new resources are continually required to replenish
wasted raw materials. It can also represent an environmental alternative to waste since waste
represents a signif icant amount of pollution in the world.

Zero Waste International Alliance has been established to promote positive
alternatives to landfill and incineration and to raise community awareness of the social and
economic benefits to be gained when waste is re garded as a resource base upon which can be
built both employment and business opportunity.

To achieve zero waste, waste management has to swap from the traditional linear
system to the new cyclical one, so that materials, products and substances are used more
efficiently. Materials must be chosen in such a manner, that it may either return safely to a
cycle within the environment or remain viable in the industrial cycle9.

On the next page, the figures explain today’s material flow and the improved mater ial
flow. With graphics, it is much easier to understand that Zero Waste discipline uses far
fewer raw materials and sends no waste elements to landfills.

8 http://zwia.org/
9 http://www.zerowaste.org/case.htm#benefits

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Figure 4. Improved material flow10

The improved material flow aims to tighten the large number of flows and unify them
into a single circuit, a single loop capable of sustaining itself with a minimum consumption
rate and a maximum recovery factor.

3.3. Greenhouse emissions (gasses)

Talking about concepts and circular strategies can be ti me consuming, as there are a
lot of topics that should be discussed. It can go so deep into details that one might even feel
lost, right before reaching the actual subject in question. Thus, the choice is to jump right to a
topic of interest: greenhouse ga ses and the greenhouse effect .

The origin of the name is a greenhouse building, made of glass; it allows sunlight to
enter but traps heat inside, so the building stays warm even when it’s cold outside. Because
gases in the Earth’s atmosphere also let in light but trap heat, many people call this
phenomenon the “ greenhouse effect .” The greenhouse effect works somewhat differently

10 http://www.zerowaste.org/case.htm#benefits

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from an actual greenhouse, but the name stuck, so that’s how it still is referred to today. If it
were not for greenhouse gases trapping heat in the atmosphere, the Earth would be a very
cold place. Greenhouse gases keep the Earth warm through a process called the greenhouse
effect11.

The Earth gets energy from the sun in the form of sunlight. The Earth’s surface
absorbs some of th is energy and heats up (that’s why the surface of a road can feel hot even
after the sun has gone down – because it has absorbed a lot of energy from the sun).
The Earth cools down by giving off a different form of energy, called infrared
radiation. But b efore all this radiation can escape to outer space, greenhouse gases in the
atmosphere absorb some of it, which makes the atmosphere warmer.
As the atmosphere gets warmer, it makes the Earth’s surface warmer, too12 (in this
link, https://www.youtube.com/watch?v=VYMjSule0Bw there is a short video about the
greenhouse gases, as to better understand the topic).

Carbon dioxide . It is an element that’s found all over the world and in every living
thing . Oxygen is another element that’s in the air we breathe. When carbon and oxygen bond
together, they form a colorless, odorless gas called carbon dioxide, which is a heat -trapping
greenhouse gas. Burning fuels such as coal, oil, and natural gas, or usage o f electricity, or
making different products, all generate carbon dioxide.

The atmosphere isn’t the only part of the Earth that has carbon. The oceans store large
amounts of carbon as well, and so do plants, soil, and deposits of coal, oil, and natural gas
deep underground.
Carbon naturally moves from one part of the Earth to another through the carbon
cycle. But right now, by burning fossil fuels, people are adding carbon to the atmosphere (in
the form of carbon dioxide) faster than natural processes can remove it.
That’s why the amount of carbon dioxide in the atmosphere is increasing, which is
causing global climate change. Carbon dioxide stays in the atmosphere for 50 to thousands of
years.
Thus, it is the most important greenhouse gas emitted by huma ns, but several other
gases contribute to climate change, too. Check the image below.

11 http://climate.nasa.gov/
12 https://www3.epa.gov/climatechange/kids/ba sics/today/greenhouse -effect.html

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Figure 5: Major greenhouse gases from people’s activities

Methane . Methane is emitted during the production and transport of coal, natural gas,
and oil. Met hane is often found underground with coal and can be released during mining.
The emissions also result from livestock – especially cows and sheep – and agricultural
practices and by the decay of organic waste. It can stay in the atmosphere for about 12 yea rs
and it traps over 20 times more heat than the same amount of carbon dioxide.

Nitrous oxide . Nitrous oxide is emitted during agricultural, farming and industrial
activities, as well as during combustion of fossil fuels and solid waste. Certain bacteria in the
soil turn this extra nitrogen into nitrous oxide. It stays in the atmosphere for about 115 years
and it traps about 300 times more heat than the same amount of carbon dioxide. Thus it is
more dangerous than methane.

Fluorinated gases . Hydrofluoroca rbons, perfluorocarbons, sulfur hexafluoride, and
nitrogen trifluoride are synthetic, powerful greenhouse gases that are emitted from a variety
of industrial processes. Fluorinated gases are sometimes used as substitutes for stratospheric
ozone -depleting s ubstances (e.g., chlorofluorocarbons, hydrochlorofluorocarbons, and
halons).
These gases are typically emitted in smaller quantities, but because they are potent
greenhouse gases, they are sometimes referred to as High Global Warming Potential gases
(“Hig h GWP gases”). Each gas is different and some can stay in the atmosphere for
thousands of years. Although these gases represent only a small fraction of the greenhouse

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gases in the atmosphere, emissions are expected to increase faster than the emissions of other
greenhouse gases. And depending on the gas, it can trap anywhere from hundreds to
thousands of times more heat than the same amount of carbon dioxide. So, they are quite
dangerous for the medium.

Other gases . These gases stay in the atmosphere for a long time and they include
chlorofluorocarbons, which are more commonly known as CFCs. These gases also damage
the Earth’s ozone layer, so the countries in the world have joined together and agreed to stop
using these chemicals. As a result, emissions ar e already decreasing, and they will continue to
decrease over time13.
Greenhouse gases come from all sorts of everyday activities, such as using electricity,
heating our homes, and driving around town14. Take a look at different activities that produce
greenhouse gases in the picture below.

Figure 6: Sources of greenhouse gas emissions for year 2012 in US

These greenhouse gases don’t just stay in one place after they’re added to the
atmosphere. As air moves around the world, greenhouse gases beco me globally mixed, which
means the concentration of a greenhouse gas like carbon dioxide is roughly the same no
matter where you measure it. Even though some countries produce more greenhouse gases
than others, emissions from every country contribute to th e problem.

13 https://www3.epa.gov/climatechange/kids/basics/index.html
14 http://whatsyourimpact.or g/greenhouse -gases

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Figure 7: Evolution of Emissions of greenhouse gases worldwide

That is only one reason why climate change requires global action. The graph above
shows how the world’s total greenhouse gas emissions are co ntinuing to increase every year.

3.4. Climate change

Each gas's effect on climate change depends on three main factors15.

1. Quan tity of gases in the atmosphere
Concentration (abundance) , is the amount of a particular gas in the air. Larger
emissions of greenhouse gases lead to higher co ncentrations in the atmosphere.
Greenhouse gas concentrations are measured in parts per million, parts per billion,
and even parts per trillion. One part per million is equivalent to one drop of water diluted into
about 13 gallons of liquid (roughly the fuel tank of a small car).

2. Duration of gases in the atmosphere
Each of these gases can remain in the atmosphere for different amounts of time,
ranging from a few years to thousands of years. All of these gases remain in the atmosphere
long enough to becom e well mixed, meaning that the amount that is measured in the
atmosphere is roughly the same all over the world, regardless of the source of the emissions.

15 https://www3.epa.gov/climatechange/kids/index.html

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3. Strength and impact in global temperatures
Some gases are more effective than others at making the planet warmer.
Each greenhouse gas has a global warming potential. Gases with a higher
calculated/estimated GWP absorb more energy, per pound, than gases with a lower GWP,
and thus contribute more to warming the Earth16.

16 http://www3.epa.gov/

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4. Life-Cycle Assessment. P urpose and design

The previous discussion and explanations about sustainability and greenhouse gases
was not intended to be a stand -alone study, but merely an important step towards the core of
the project, respectively, the Life cycle assessment .
The pollution , the circular economy, the ze ro waste concept , the greenhouse
emissions which were presented in the first part of the paper are elements that meet in the
same spot; they are bounded one to another and are quantified and though they are measured
in differe nt scales and have different meanings, they collapse into the life cycle assessment
study.

Life Cycle Assessment (LCA) is directly linked to what has been previously described
and it is a technique used to assess environmental impacts associated with all the stages of a
product’s life, starting with raw material extraction, to material processing, manufacture,
distribution, use, maintenance – repair, and fin ally disposal and/or recycling17.

In ISO 14040 , LCA is defined as the “compilation and evaluation o f the inputs,
outputs and potential environmental impacts of a product system throughout its life cycle.”
So LCA is a tool for the analysis of environmental burden of products at all stages in their life
cycle – from the extraction of resources, through th e production of materials and product
parts (and the use of the product management after it is discarded after reusing or disposal).
The total system of unit processes involved in the life cycle of a product is called the
product system .

The environmenta l burden covers all types of impacts upon the environment, and this
includes the extraction of different types of resources, emission of hazardous substances etc.
This term, “product” refers to physical goods and services, at both levels, operational
and strategic. LCA is quantitative in character but there are areas in which it is applied as
qualitative, and it should also be taken into account, because environment related statistics
include both quantity and quality aspects.

17 Life cycle assessment – An operational guide to the IS O standards, Final report, May 2001

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4.1. Applications of LCA

The main applications of LCA are in a relatively broad area:
a. Analyzing the origins of problems which are related to a product;
b. Comparing improved versions of a given product;
c. Designing new products;
d. Choosing between a numbers of comparable products.

As a gene ral rule, an LCA project is implemented depending on business strategies
and government policies and it is correlated to a specific application of the desired results.
The goal of LCA is to compare the full range of environmental effects assignable to
products and services by quantifying all inputs and outputs of material flows and assessing
how these material flows have an impact on the environment. This information is used to
improve processes, support policy and provide a sound basis for informed decisio ns.

The term life cycle is related to the notion that a correct holistic assessment requires
the assessment of raw -material production, manufacture, distribution, use and disposal, thus it
represents the product's existence.
The LCA is not only applied to products, but to wider domains. Rather than dealing
with well -defined physical goods or basic services, LCA could be applied to complex
business strategies or even government policies related to lifestyle and consumption in
different society layers.

As examples, some wider applications of LCA are as follows:

– One-way packaging by an industry. In EU it is allowed on the sole condition that a
lesser burden is thrown at the environment when using new materials for
packaging, rather than reused materials.
– Comparison between different management strategies, regarding waste inside
cities.
– Comparison between means of transport (road, rail, water). The purpose is to
decide the best, pollution -free infrastructure.
– Design of newer products, like cars, homes etc. Th ese should meet some
minimum ecological conditions for the future.

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Starting from a single product, therefore from a very narrow area, LCA extends up to
a continuous management tool, developing more complex criteria, based upon current and
evolving info da tabases.
The LCA model focuses on physical characteristics of the industrial activities and
other economic processes. It does not include market strategies or secondary effects on
technological development. Furthermore, it focuses on environmental aspects , and does not
directly refer to social or economic characteristics.

However, it does have some limitations, though it is science -based. Such a study
involves some technical assumptions and value choices. It is limited by databases, although
they are in continuous development and are being standardized. Data from different sources
is sometimes obsolete or impossible to compare, or it’s simply not sufficiently reliable.

LCA is an analytic tool rather than a decision process. As such, it can only help
develop decisions, not actually take them. It can play a useful role in public and private
environmental management in relation to products. This may involve both an environmental
comparison between existing products and the development of new products, which includes
comparisons with prototypes as well.

A major application involves ‘green’ procurement, a ‘green’ purchasing policy, which
can be implemented by both authorities and companies. The ranking of resources, materials
or products do not need to be do ne on a quantitative basis, using LCA. So here is a simple
example: tropical hardwood with a label from the Forest Stewardship Council can be
compared with hardwood without such a label (as long as all other aspects remain the same),
using a simpler and mo re focused style of analysis based on just one qualitative criterion,
than using LCA.

However, if different types of processed wood are to be compared for other reasons
besides avoiding the use of tropical hardwood, LCA may well make an essential contrib ution.
Another application concerns eco -labeling, enabling consumers to make comparisons
between products and the possibility to design more environmentally friendly products. Eco –
labeling programs like the EU’s are increasingly based on LCA.

LCA is usua lly carried out on a project basis, with a purpose, with goals and with
conclusions drawn in the end, but the applicability can be widened greatly. Thus, by using
this type of study as a management tool on a more continuous basis, criteria are derived from

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it and a more expensive LCA study of the management process emerges. Its purpose is to
return better values, better statistics and to deliver an overall improvement plan.

4.2. LCA drawbacks

First of all, LCA cannot address localized impacts. It is possible to scale down some
of the results and to identify the regions in which certain emissions take place. Only after that
can it tell the differences in the sensitivity of these regions and a plan can be developed
accordingly. But LCA does not provide the frame work for a full -spec local risk assessment
study, identifying which impacts can be expected due to the functioning of a facility in a
specific locality. The same is true for the time aspect. LCA is typically a steady -state, rather
than a dynamic approach.

Secondly, LCA model focuses on physical characteristics of the industrial activities
and other economic processes; it does not include market mechanisms or secondary effects
on technological development. In general, LCA processes are regarded as linear, both in the
economy and in the environment, thus LCA is a tool based on linear modeling.

Thirdly, LCA focuses on the environmental aspects of products, and says nothing
about their economic, social and other characteristics. The environmental impacts are often
described as "potential impacts", because they are not specified in time and space and are
related to an (often) arbitrarily defined functional unit.

Although LCA aims to be science -based, it involves a number of technical
assumptions and value choi ces. An important role is played by the ISO standardization
process, which helps to avoid arbitrariness.

One important aim is to make these assumptions and choices as transparent as
possible. Another limitation can lie in the availability of data. Databa ses are being developed
in various countries, and the format for databases is being standardized.
But in real life, databases are frequently obsolete, incomparable, or of unknown
quality. More in particular, databases are generally available at the level of building blocks,
i.e., for combinations of processes such as 'electricity production' or 'aluminum production',
rather than for the individual constituting processes themselves.

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A fundamental characteristic concerning the nature of LCA is to be regarde d as an
analytical tool. As such, it provides information for decision support. LCA cannot replace the
decision making process itself. One cannot say: ‘The LCA study has proved that this decision
must be made,’ but rather ‘Based on an LCA study and other e vidence, the following
decision has been made.’

There are quite a few steps that describe an LCA study, however, it is a complex
matter and it should be approached with a high degree of patience and focus. An LCA project
is more than just a study. The res ults of the project could be used in decision -making by
industry, government and non -governmental organizations. They could guide decisions on
investment, policy issues or strategy determination.

So, it is best to consider an LCA project as an organizati onal process, which can be
carried out in several ways:

– the parties and the individuals who will be involved in the LCA project
– the tasks and responsibilities of parties/individuals involved
– how decision -making will work at these points
– the arrangements f or dealing with ‘bottlenecks’ during the process
– the actual planning and management of the process
– the decision points at which the parties involved can exercise their influence

4.3. Execution of an LCA study

The execution of an LCA should be carefully appro ached. This requires that both the
LCA client and other possible party reflect upon their goals. Meanwhile, the LCA researchers
themselves should also keep the goals firmly in mind, considering how this could affect the
conditions and constraints of the pr oject itself. The LCA client also needs to consider the
design, the organizational set -up and the management of the accompanying process.
A suitable process design can be defined as a set of rules agreed on by the parties
involved; these aspects cover also when and how the process is to be carried out. A proper

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and transparent process can only be realized by a design that maximizes all potential
advantages, whilst keeping the risks of the process approach to a minimum. The advantages
of the process approach are that a qualitatively better LCA is realized, and that broader
support for the results from the parties involved is more likely to be achieved. Further
advantages of the process approach include:

– the opportunity to educate stakeholders and shape their views;
– better quality of the data and other information used in the LCA;
– improved transparency of the LCA report;
– better quality of execution of the LCA.

The process design must be clear in its objectives, which means that a distinct starting
point and a distinct endpoint of the process must be defined. An optimized interaction
between the execution of the LCA as such and the practical use of the LCA's results should
be arranged in for steps, as follows: assignment of the research; execution of the LCA;
presentation of the LCA's results with conclusions; implementation based on the LCA's
results .
What determines the type of process design and development is, first of all, the nature
and number of parties with diverging interests. Secondly, the possible eff ects of the intended
use of the LCA's results also determine the extent and manner of regulation of the
development process.

– global exploration of options (a first impression of the environmental effect)
– company -internal innovation
– sector -driven innovat ion
– strategy determination (environmental impact if strategic scenarios)
– comparison (whether a product meets expectations or not)
– comparative assertion disclosed to the public

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Figure 8: Decision tree for determining the cont ext of a given decision

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Determining the decision situation in advance of the execution of the LCA study does
not imply that the decision to be taken is already fixed. It only implies that a certain decision
is aimed for and that a number of procedural ar rangements may be necessary. As such, four
categories can be defined by making distinctions on grounds of diverging interests and on the
relative potential impact of the LCA's results on the stakeholders.
In the case of global exploration of options, ther e are generally few diverging
interests, and there is a weak impact. In such a situation, a process approach is unnecessary.
In the remaining three cases, process design needs to be attuned to the various process
contexts:
1. process context I: few divergi ng interests, potentially strong impact;
2. process context II: many diverging interests, potentially weak impact
3. process context III: many diverging interests, potentially strong impact.

These three process contexts are figured above in the graph.

4.4. Guidelines for an LCA standard study

LCAs are conducted as company -internal matters. They may be restricted to a general
exploration of the environmental burden associated with specific options, in which case the
procedural approach to the LCA project can remain a purely internal affair.
But it has often more implications, in aspects concerning policy choices, investments
and other important decisions. Realization of an LCA project closely depends on a process
design, or a set of guidelines, to be more sp ecific; it is arranged by the parties involved.
Below there is a list of guidelines and objective advices for realizing an LCA
project18.

4.4.1. Process rules according to the decision situation
All procedural guidelines for the specific LCA phases are given for the three distinct
types of process context. In general, context III is the most complex and requires the most
detailed rules.

18 Life cycle assessment – An operational guide to the ISO standards PART 2: Guide

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4.4.2. Process rules based on guidelines for LCA phases
The definition of the guidelines does not depend on the complexity of the LCA itself,
but rather on the complexity of the interests of the parties involved. It is possible, for
instance, that a relatively simple LCA will require a detailed LCA process – because of the
varied interests of those involved. This implies that the procedural guidelines only provide a
general basis for detailed process rules, which themselves have to be designed by the parties
involved in a given situation.

4.4.3. Process design based on general guidelines .

The following guidelines can form the basis fo r a process design:
1. Entry guideline : the following parties should be invited to be part of the decision
making process: all who have an interest in the results of the LCA and those who could
influence or block the purpose of the LCA. This rule will need to be worked out in each
specific context: it may be necessary to involve more parties or to restrict the number,
depending of management considerations.

2. Consensus guideline : the most important guideline for decision -making is to have
decisions made b y consensus, and to use a majority of votes, arbitration, or another
previously determined procedure for decision -making only if there is no other alternative.
The reason is that those who find themselves in the minority a few times may lose
commitment to the process and so to the final result. It is important that minority wishes
should be granted if they do not ru n counter to the majority view.

3. Test of professionalism : when parties negotiate the formulation of an assignment or
a report, they could pro duce an assignment or statement that turns out not to be up to
scientific standards in terms of content. For instance, the formulation of the assignment could
contradict the core scientific content of this LCA Guide. In such cases, the investigators
should test the content of the parties’ statements and report explicitly when they find a
statement debatable in scientific terms.

4. Reporting in the case of a conflict between investigators and stakeholders : in such
cases, the investigators' opinions should b e clarified in the LCA report. This allows the
investigators to keep their professional integrity intact, while stimulating the stakeholders to
revise their opinion.

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5. Explicitness : stakeholders may have conflicting opinions about, for example, the
formu lation of an assignment, about the quality of the result of an investigation or about the
analysis of such results. The rule of explicitness ensures that the stakeholders make such
differences of opinion explicit.

6. External test rule (critical review or peer review): this rule states that there should
be external testing of certain aspects of an LCA project during the process by independent
critical review. ISO10404 states that the critical review shall ensure that:

– the methods used to carry out the LCA are consistent with the ISO standards on
LCA;
– the methods used to carry out the LCA are scientifically and technically valid;
– the data used are appropriate and reasonable in relation to the goal of the study;
– the interpretations reflect the limitations id entified and the goal of the study;
– the study report is transparent and consistent.

7. A critical review could be applicable to an interim LCA report, or to specific issues
giving rise to conflict between investigators and stakeholders, or to conflict bet ween
stakeholders. But it may be useful to have a critical review carried out in any case, by way of
overall error check, and to justify the reasonableness of assumptions, the appropriateness of
data and the correctness of methods.

8. Reporting in the cas e of a conflict between stakeholders : this second reporting rule
allows for unresolved conflicts between stakeholders to be described in the final report. In
such cases, one or more stakeholders may dissociate themselves from the results because they
feel the LCA guidelines have not been properly applied. The reporting rule requires that a
judgement by the research institute and a critical reviewer be added to the stakeholders’
opinions. On the one hand, this does justice to minority opinions, since these a re noted in the
final report. On the other hand, strategic behavior is exposed, since it will become evident if
minority views cannot stand up to a critical appraisal of their content.

9. Iteration rule : one or more stakeholders may require iteration, par ticularly in the
last two process steps. If all parties agree, there is no problem, but if a minority group wants
iteration, a conflict may arise. Other parties may wish to end the investigation. The iteration
rule says that if a minority wants iteration o f the last two steps, this should be allowed.

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4.5. LCA characteristics

The standard LCA studies are defined in four interlinked stages, as shown below.

Figure 9. LCA phases

According to the ISO 14040 and 14044 standards, a Life Cycle Assessmen t is carried
out in four distinct phases as illustrated in the figure shown above. The phases are linked one
to each other, therefore one phase will inform how other phases are completed.

4.5.1. Goal and Scope
The Goal and scope is the phase in which the initia l choices which determine the
working plan of the entire LCA are made. The goal of the project, or study, is formulated in
terms of target audience, intended application and in terms of exact questions.
The scope is defined in terms of geographical, tempo ral and technological coverage
and the complexity of the project is directly linked to the established goal.
In the end, the products which were analyzed are described in terms of functions, and
reference flows. Both the goal and scope are clearly defined , based on ISO standards.

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This first part contains technical information about the following:

 Functional unit, which defines the item that is being studied and quantifies the service
delivered by the product; it is also providing a reference to which th e inputs and
outputs can be related. This unit enables comparison between other similar products.
 system boundaries;
 assumptions and limitations;
 allocation methods used to partition the environmental load of a process;
 the impact categories chosen.

4.5.2. Inven tory analysis
Inventory analysis is the phase in which the product (or system) is defined. Defining
includes the setting of the system boundaries (the relation economy -environment), the flow
diagrams of the processes, the collection of data for each type a nalyzed, the allocation steps
for multifunctional processes and the final calculations.
The result is a table, in which inputs and outputs are listed, data that is linked to the
relation between the functional unit and the environment in terms of kgs of c arbon dioxide,
mgs of phenol, kgs of iron ore and cubic meters of natural gas etc.
At an industry level, the questionnaires cover the full range of inputs and outputs,
typically aiming to account for 99% of the mass of a product, 99% of the energy used in its
production and any environmentally sensitive flows, even if they fall within the 1% level of
inputs.

4.5.3. Impact assessment
Life cycle impact assessment also known as LCIA, is the phase in which the set of
results of the inventory analysis (the inventory table) is further processed and interpreted, in
terms of environmental (and social) impacts.
A list of impact categories is defined and models for relating the environmental
interventions to suitable category indicators for these impact categories are sel ected. The
modeling results are calculated in the characterizations step. The category indicator results
can be grouped and weighted to include also society preferences.

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4.5.4. Interpretation
Life Cycle Interpretation is the phase in which the results of the ana lysis, choices and
assumptions made during the course of the analysis are evaluated in terms of soundness and
robustness; overall conclusions are drawn. The main elements of the Interpretation phase are
an evaluation and an analysis of the results, regardi ng completeness and consistency.
Another important element is represented by the conclusions and recommendations
drawn from that study.

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5. Application. LCA “ Nail” Case Study

Life Cycle Assessment studies are carried out using a dedicated, extremely versa tile
tool provided by “ ThinkStep GaBi ”. GaBi is the most trusted product sustainability solution
for Life Cycle Assessment with over 10,000 users including Fortune 500 companies, leading
industry & innovative a ssociations.

5.1. GaBi Software tools and mod els

GaBi models every element of a product or system from a life cycle perspective,
equipping businesses to make the best informed decisions on t he manufacture and lifecycle of
any manufactured product, everything from a hand -held mobi le phone to a match -stick to an
airport. It also provides an easily accessible content da tabase detailing the energy and
environmental impact of sourcing and refining ever y raw or processed element of a
manufactured item19.
In addition, it looks at the impact on the environmen t and presents alternative options
for manufacturing, distribution, recyclability, pollution and sustainability.
GaBi includes extensive, high -quality databases , internationally established impact
categories and indicators, numerous evaluation methods and many more useful information

GaBi offers a 30 days’ trial version with a very small predefined database, which
was fully used in designing this case study. The software enables the user to create a plan, to
add different processes and to connect them wi th flows. Such a study is highly complex and
very expensive, thus the small database offered for free is quite sufficient for elaborating a
simple LCA; my choice was a Nail and though it seems easy to do, it’s not. It involves a lot
of processes (and I onl y mentioned the most important ones as we’ll see in the next pages)
and the flows that link up these processes are filled with parameters and information.

The good thing is, GaBi LCA Software enables the user to use pre -defined elements,
which are alread y filled with parameters such as EURO normative, fuel costs, salary costs,
making process, transport conditions, time based activities and many, many more.
Therefore, I created a plan in which I added the main process I could think of,
regarding the “maki ng of a nail”. It looks like this:

19 http://www.gabi -software.com/software/

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Figure 10. Illustration of the plan, processes and flows for “making a nail” – basic configuration

It is composed of a number of blocks which represent raw materials, transport –
whether air transport, land transport or water transport – depending of the raw material and
the products’ needs. It also figures a block which represents the manufacturing process, here
illustrated by the Factory “nail making”.

Last but not least, there is a block that designates t he use of the processed material. In
this case, the strengthen Phase Steel is used in different applications that are not mentioned,
but are included in the hidden parameters of the design block

As we proceed with the different flow and process types, the software automatically
recognizes that other processes or flows need to be present in the plan, in order to accurately
describe the real LCA of the nail20. Therefore, after completing some forms and adding some
parameters to the equation, the flow became c learer, and it looked like this:

20 http://www.gabi -softwa re.com/software/gabi -universities/

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Figure 11. Illustration of the full plan, with all associated processes and flows

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In order to create a nail, we need raw material, and that’s where the Steel Billet comes
into play. Please note the first diagram block in the left upper corner.
This raw material needs a finer processing to become Steel wire thus, transportation
would cost less.
The steel wire can be bent and stored more compactly and it can also be manipulated
with re lative ease, were to be compared with a bulky steel billet.

Transport is figured by the block named “truck”.
Transport means fuel consumption, so the upper block is inserted in the plan, the
“Diesel mix ”. For longer trips, the raw material (steel wire) needs to be shipped to another
destination, where the manufacturing plant is located, and the transport choice, in this case, is
by air.

As such, the block “ cargo plane ” and its associated “ kerosene ” block are added to
the scheme. At the manufacturing pl ant, the process of “nail making” occurs, with
“electricity” consumption. The metal receives a special treating, to strengthen the steel in
order to withstand serious demands. It is then used and recycled once it meets its age. The
end of its life is marke d by the block “ End of life model ”.

But form there, scraps and leftover pieces can be transformed again in steel wires or
metal rods and they could virtually reenter the same or another process (e.g. sewing needles
and paperclips).

All these blocks are interconnected by the blue arrows , which represent all the flows
between different stages.
Each flow has some weights and some parameters associated. For example, the truck
is labeled as diesel engine EURO 3, with a specific consumption of fuel and a spe cific
maximum transported weight.
In order to achieve a very accurate study, all these values must be associated with
existing, real data. Another example would be the cost of the kerosene, the amount of fuel
burnt by the airplane and the extra weight add ed from the cargo, which has a direct impact
over the engines’ consumption and CO2 release.

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The flows and the specific parameters should match real life cases in order to best
describe the quantity of CO2 released in the atmosphere.

5.2. Life -cycle as sessment results

Please k eep in mind that this is only a light version of a real life model LCA.
Because there are many other processes behind each block, thus the diagram can get
quite large.
Each block and process add up to the carbon footprint, becau se each has an impact
over the environment, whether is gas consumption, electrical consumption, water processing
and so on.

Figure 12. GWP (Global Warming Potential)

The GaBi LCA software has a special function that enables the diagram’s equ ation to
be resolved and to display various results from which I mention GWP (Global Warming
Process), measured in kg CO2, ODP (Ozone depletion potential), measured in Kg (R11),
Human toxicity and Water toxicity (measured in CTUh – comparative toxic unit) and others
as well.

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Right below, we’ll take a look at these results and we’ll explain their values.

Figure 13. ODP (Ozone Depletion Potential)

As previously mentioned, GWP and ODP are important factors for human health.
GWP is a relative me asure of how much heat a greenhouse gas traps in the
atmosphere. It compares the amount of heat trapped by a certain mass of the gas in question
to the amount of heat trapped by a similar mass of carbon dioxide.
So in this case, the total amount of carbon dioxide comes from multiple sources from
which there sho uld be mentioned the three most important: the carbon dioxide emitted by the
cargo plane, the end of life model (recycling process) and the steel billet production. The
others are important as well, as they contribute to the total amount of carbon dioxide emitted
in the air.
ODP is the relative amount of degradation to the ozone layer it can cause, with
trichlorofluoromethane (R -11 or CFC -11) being fixed at an ODP of 1.0. As it can clearly be
seen fro m the graph above, the highest potential for ODP is represented by the recycling
process at the end of the life model, due to various treatments the steel receives and due to the
materials consumed in these processes.
For the “Nail” Life cycle assessment , the total value for each graph is composed by
the “End of Life Model” plus “Steel Billet”, “Electricity grid mix”, “Ke rosen” and “Steel
wire” blocks.

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The rest represents transportation , using Diesel fuel and the special treatment the
metal receives in the factory are treated as a separate smaller block, proportional to their
weight in the total amount of CO2 emitted, or R11 -equivalent emitted.

Figure 14. Human toxicity index ( cancer effects)

The Human Toxicity Potential (HTP) is a quantitative toxic equivalency potential
(TEP) that has been introduced previously to express the potential harm of a unit of chemical
released into the environment. HTP includes both inherent toxicity and generic source -to-
dose relationships for pollutant emissions. See below the Human toxicity potential (non
cancer)

Figure 1 5. Human toxicity index ( non-cancer effects)

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Figure 16. Ecotoxicity graph

Ecotoxicity in general refers to the potential for biological, chemical or physical
stressors to affect ecosystems. Such factors might occur in the natural environment at various
densities or concentrations high enough to disrupt the natural biochemistry, physiology,
behavior and interactions of the living organisms that comprise the ecosystem.

The graph above shows the ecotoxicity related to freshwater supplies/resources.

Figure 17. Water amount to be consumed while making the product

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The graph shows the amount of water to be consumed while making the “nail”. That
is a total amount of 25 plus kilograms of water that are to be consumed while producing a
nail, which is a surprising value, given the fact that the nail is metal based and that the
transport consumes fuel.

But of course, water is also consumed for different activities , whe ther at the factory or
on the way there, thus the staggering result. Water resource depletion is no joke. Its impact on
all environment, therefore on human life is high.

The other graphs that GaBi software presents have their impact as well on different
areas of industry, environment or human health, but are less relevant for this paper.
Nevertheless, the graphs for Particulate matter emission, the Ionizing radiation, the
Photochemical Ozone formation or the Acidification are shown down below.

Figure 18. Particulate matter/Respiratory inorganics

Particulate matter is the sum of all solid and liquid particles suspended in air many
of which are hazardous. This complex mixture includes both organic and inorganic particles,
such as dust, pollen , soot, smoke, and liquid droplets.

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Figure 19. Ionizing radiation

Particulate matter goes hand in hand with Ionizing radiation , which is the type of
radiation consisting of particles, X -rays, or gamma rays with sufficient energy to cause
ionization in the medium through which it passes.

Figure 20. Photochemical Ozone formation

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Air pollution causing tropospheric ozone in the atmosphere can have a negative
impact on human health, e.g. respiratory problems, and terrestrial ecosy stems, e.g. plant
biomass decreases.

In atmospheres containing nitrogen oxides (NO x, a common pollutant) and volatile
organic compounds (VOCs), ozone can be created in the presence of sunlight. Although
ozone is critical in the high atmosphere to protect against ultraviolet (UV) light, low level
ozone is implicated in impacts as diverse as crop damage and increased incidence of asthma
and other respiratory complaints.

Photochemical ozone creation potential (also known as summer smog21) for
emission of sub stances to air is calculated with the United Nations Economic Commission for
Europe (UNECE) trajectory model (including fate) and expressed using the reference unit, kg
ethene (C 2H4) equivalent.

Figure 21. Acidification Potential

Acid gases that are re leased into the air or resulting from the reaction of non -acid
components of the emissions are taken up by atmospheric precipitations and the falling “acid
rain” forms an acid input which is absorbed by plants, soil and surface waters ; all this

21 http://www.ziegel.at/gbc -ziegelhandbuch/eng/umwelt/wirkkatap.htm

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absorption is leading to leaf damage and super acidity of soil, which affects the solubility,
hence the availability of plant nutrients and elements that plants can consume.
The Acidification Potential is a meter of the disposition of a unit of the mass of a
compone nt i to release H+ protones, expressed in terms of the H+ potential of the reference
substance SO 2.

Figure 22. Resource depletion

With 7.2 billion people on the planet, the natural resources are depleting rapidly
and people are beginning to see the consequences of this loss.

To resume and to conclude the above results, there are seve ral aspects that should be
clarified and further explained in the bigger picture. These results, that are specific for the
“nail” products are unique and depend directly on the quantities used, raw material quality
(purity, sources etc.).
Therefore, the Global Warming Potential is th e most important result because it
represents the exact carbon footprint of the product, and it also shows the amount of i mpact it
inflicts to the surroundings and to human quality of life.
In the graph, the highest achieved value is for the consumption – pollution of the cargo plane.
The emitted quantity of carbon dioxide is extremely high and this represents the main

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hotspot. For a transport of raw material from China to Germany , the highest pollution level
occurs during flight.
The secondary hotspot is rep resented by the end of the life model, meaning the
disposal and recycling process of the product. This hotspot also bears a somewhat high
degree of impact to the medium, but it is not by far as big as the transport hotspot.
The other blocks, meaning the extraction of steel billet, the refining process and all other sub –
processes are adding up to the total amount of emitted carbon dioxide.
The next important graph is the O zone Depletion Layer potential, which also impacts
the human quality of life. As the graph suggests, the two hotspots are represented by the end
of life block and the electricity (energy) used in the life -cycle process of the nail. Bein g a raw
material, the steel billet which makes the nail can be reused in the end, thus cutting down
costs for another transport from China to Germany.
These being said, in the beginning of the LCA, the transport will have the greatest
impact over the medi um (GWP), but right after, the quantity of carbon dioxide emitted by
cargo plane will abruptly drop, t hus this hotspot will disappear . The end of life – recycling
process will take its place, as it will continuously reappear during the life time of the raw
material.
Back to Ozone Depletion Layer Potential, the same hotspot remains in top, meaning
that recycling will cause constant quality of life loss. The key to this negative potential is a
good planning of activities carried out with this product. It should be designed to withstand a
minimum number of years, and at the end of its purpose, to be easily recycled and put in
circulation once again with a different scope. The secondary hotspot in the ODP graph is
represented by electricity, but these is a sustainable source, as it can be harvested from water,
sun, w ind and even waste burning.
The Human Toxicity index further enhances the negative potential of the previous two
graphs ; as expected the particles emitted from the burning of kerosene and from the
extraction o f steel billet are extremely dange rous and could cause faster cancer apparition in
various zones around the world.
For the Ecotoxicity Graph, the same hotspot remains, being highly represented by the
kerosene block. It affects and it can even disrupt the natural biochemistry and behavior
between living organisms.
The Water amount wasted during the cradle -to-ground process of the nail is split
between a couple of hot spots from which the end of life block is the biggest to be mentioned ,
closely followed by the steel rod production and materials wasted (water and fuel).
The two main hotspots that are present in each of the resulted graphs are Kerosene
consumption (cost, pollution and side effects ) and the recycling process at the end of life of
product.

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The solution in this case is complex and it has various approaches. For this exact case,
as for similar products, a close look at the activities involved in the global process is required.
A better m apping of activities is also required in order to slow down the GWP and ODP. The
transport block weights a lot in a primary phas e, but then drops in the next phases. The main
problem remains the recycling methods u sed for this part icular product and resource
consumption.
In order to minimize these effects, another raw material provider is required. This
way, the fuel burnt per distance is smaller. The refining process should also be placed near
the raw materials ’ extraction point. Another improvement regarding fuel efficiency could
come t his way, b y minimizing road transportation .
As a strong point of this whole scheme is the recycling process. The product once
arrived to Germany can remain there and can be exploited in various different ways; no need
for another tra nspor t as the refineries are all in the same spot. So, though the transport is the
most costly from all blocks, it can be drastically reduced once the quantity of nails is high
enough in the importing country.
Recycling of metal products requires a heavy industry and a keen eye on resource
depletion (water and fuel) and also requires str ong constraints regarding environmental
pollu tion. The attenuation coming from constant recycling helps reduce overall costs and
aims to upgrade the current technological processes.

By restoring the balance to the life cycle of each product individuals can still make a
stand, thus circular economy is the way. The concept “Waste is food” should be the main
objective and concern.
Not only fresh wate r is depleting rapidly, but also fossil fuels, like coal and natural
gases. The prolonged usage of these fuels has a direct and negative impact on the inhabited
planet and on the whole ecosystem.
Minerals are dropping as well and the main renewable resour ce is not yet harvested at
its full potential. Electricity is the renewable resource here. Nothing can be moved,
manufactured, transported, built, planted, mined or harvested without the liquid fuels that
people get from petroleum.
Efforts are underway to develop cheaper and more sustainable energy such as solar
power, wind power and other forms of renewable energy that can replace oil and fossil fuel
but progress is slow.

– An estimated 18 million acres of forests are destroyed each year.
– Half of the wor ld’s forest has been cleared.
– Deforestation contributes 12 to 17% of global greenhouse gas emissions annually. (5)
– Trees absorb greenhouse gases and carbon dioxide.

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– They produce the oxygen we breathe.
– Forests are the habitats of millions of species.

Urbanization and the refusal to switch towards a c ircular economy and a pollution –
free medium caused these tragic losses and continuously keeps a negative impact in the
equation.

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6. Conclusions

Modern society is evolving from the old principle “ take, make and dispose ” to a
more circular way of existing, toward the newer concept of “ waste is food ”.
Circular economy is a necessary version of the existing, yet decadent economy, and
presents a circular flow, which closely imitates nature’s recycling principles and decisions. A
close loop economy provides not only less pollution and less w aste; it actually helps profit
gain in a constructive manner.

Circular economy promotes the concept of sustainability and zero waste, which means
that future generations should benefit from the same wide choices that currently exist in the
world. Planning of businesses and industries should be made in a careful manner in order to
preserve an extensive equilibrium for a brighter and pollution free future. Recycling and
reuse are key features of the concept of circular economy and they are interlinked with
economic and social sustainability and stability.

LCA is a very useful technique used to assess environmental impacts connected to all
the stages of a product’s life, starting with raw material, to processing, manufacture,
distribution, use, maintenance, r epair, and finally disposal and recycling. LCA is a powerful
tool in representing business and even governmental processes. Being a product assessing
tool is one side of the concept, but it has very high applicability potential, and can be used as
a contin uous management engine for different society layers.

Ranging from products and systems, to businesses and society layers, the Life Cycle
Assessment is a modern discipline perfectly fit for extremely complex and demanding
activities, worldwide.
LCA is a v ery useful technique used to assess environ mental impacts connected to all
the stages of a product’s life, starting with raw materi al, to processing, manufacture,
distribution, use, maintenance, repair, and finally disposal a nd recycling. LCA is a powerful
tool in representing business and even governmental proce sses.

A process involving many parties c annot be driven by rules alone, and that the way
the process is managed is equally important. Each of the guideline s presented above can be
used by uncoope rative parties for their own ends, particularly to slow down the whole
process. It is up to the process manager to make it clear that everyone profits from a proper
application of the rules – and that they all suffer if the rules are abused. There is much to be
gained if the manager can make this clear to all concerned.

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For a functional approach in developing an LCA study, t here is a focus on change –
oriented, structural de cisions, that is, the method is mainly intended to support decisions with
respect to changing a situation, for instance from one material to another, and for decisions
that are assumed to be effective for an indefinite time. There is a focus on the main function
of a product; possible other functions are identified but ignored or carried o ver through an
allocation step. There is no specific focus on particular processes, chemicals, environmental
impacts, countries, years and so on. In principle, the analysis covers all processes (cradle -to-
grave), taking place at all locations and throughou t the entire life cycle period, and includes
extractions of natural resources, releases of chemicals, use of land, and all impacts resulting
from these interventions.

Being a product assessing tool is one side of the concept, but it has very high
applicab ility potential, and can be used as a continuous management engine for different
society layers. The study allows decision makers to reduce the negative impact of new
products on the environment, identify what can be improved in the existing products, avoi d
modifying one aspect that may cause more significant issues at another stage of a product’s
life and compare the environmental performance of similar products.

A process involving many parties cannot be driven by rules alone, and that the way
the proce ss is managed is equally important. Each of the guidelines presented can be used by
uncooperative parties for their own ends, particularly to slow down the whole process. It can
easily be understood from the LCA example above that such a study is benefic f or the whole
industry and for the human society; using these results can generate a cleaner, more
organized and pollution f ree environment.

The Life Cycle Assessment study carried out on a “nail” offers a glimpse of the power
of GaBi software and its extensive databases . It offers a highly detailed process, a highly
customizable process that can show the cradle -to-ground lifetime of a given pro duct. Closely
following each step on the way, beginning with raw material extraction and ending with a
recycling process , this complex tool creates a full flow of characteristics and parameters, and
it also offers graphical content, for further understanding.
The Global Warming Potential is th e most important result because it represents the
exact carbon footprint of the product, and it also shows the amount of i mpact it inflicts to the
surroundings and to human quality of life.
The Ozone Depletion Potential is a side result, but also an important one. If focuses
on huma n health and human life quality. There are other results as well, that treat the toxicity
level s and the cancerous effects on humans, on medium and on biochemistry .

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References

1. International Society for Industrial Ecology – Home: ht tp://www.is4ie.org/
2. Cradle to Cradle. The Product -Life Institute: http://www.product -life.org/en/cradle -to-
cradle
3. Blue Economy: Green Economy 2 .0” http://www.blueeconomy.de/
4. http://www.ellenmacarthurfoundation.org/assets/downloads/TCE_Ellen -MacArthur –
Foundation -9-Dec-2015.pd f
5. http://ec.europa.eu/environment/index_en.htm
6. http://www.circularecology.com/
7. http://www.sustainablecitiesinstitute.org/
8. http://zwia.org/
9. http://www.zerowaste.org/case.htm#benefits
10. http://climate.nasa.gov/
11. https://www3.epa.gov/climatechange/kids/basics/today/greenhouse -effect.html
12. https://www3.epa.gov/climatechange/kids/basics/index.html
13. http://whatsyourimpact.org/greenhouse -gases
14. https://www3.epa.gov/climatechange/kids/index.html
15. http://www3.epa.gov/
16. Life cycle a ssessment – An operational guide to t he ISO standards, Final report, May
2001
17. Life cycle assessment – An operational guide to the ISO standards PART 2: Guide
18. http://www.gabi -software.com/software/
19. http://www.gabi -software.com/software/gabi -univer sities/
20. http://www.ziegel.at/gbc -ziegelhandbuch/eng/umwelt/wirkkatap.htm

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Annex

Figure 1. Outline of a circular economy
Figure 2. Venn diagram of the three sustainability pillars
Figure 3. Today’s material flow
Figure 4. Improved material flow
Figure 5. Major greenhouse gases from people’s activities
Figure 6. Sources of greenhouse gas emissions for year 2012 in US
Figure 7. Evolution of Emissions of greenhouse gases worldwide
Figure 8. Decision tree for determining the cont ext of a given decision
Figure 9. LCA phases
Figure 10. Illustration of the plan, processes and flows for “making a nail” – basic
configuration
Figure 11. Illustration of the full plan, with all associated processes and flows
Figure 12 . GWP (Global Warming Potential)
Figure 13. ODP (Ozone Depletion Potential)
Figure 14. Human toxicity index ( cancer effects)
Figure 15. Human toxicity index ( non-cancer effects)
Figure 16. Ecotoxicity graph .
Figure 17. Water amount to be consumed while making the product
Figure 18. Particulate matter/Respiratory inorganics
Figure 19. Ionizing radiation
Figure 20. Photochemical Ozone formation
Figure 21. Acidification Potential
Figure 22. Resource depletion