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					CSTP Sustainability Guide:

  A Process for Sustainable
              .
      Decision Making

       November 10, 2009
        CSTP Exchange
                                     Acknowledgments

    Air Products & Chemicals, Inc
    BASF
    Cytec Industries.
    Dow
    FMC
    Honeywell
    Shell Chemical
 Golder Associates/Bridges to Sustainability
 AIChE/IfS
 Engineering students & faculty @ Lafayette College
How is your Company’s Sustainability
            Performance Enhanced?

   • Via the value chain?
   • By corporate decision making?
   • By job function?




          The CSTP Sustainability Guide
             A Process for Sustainable Decision Making
                                                         Background


 Project: EPA Grant 2005: Case Studies of Industry
  Decision Support tools for Sustainability

 Identified gaps & challenges
    Great tools, not widely used

    Need for better integration of sustainability into business
     processes

    Understand context of management and technology decisions
     along value chain

       • Understand key decision points, relevant Sustainability
         considerations, and key functional areas/decision makers involved

    Need to understand the broader set of tools, approaches, and
     other resources to help integrate Sustainability into the
     organization
                           Guide Summary Table


 192 Key Sustainability
  Questions
 Where to ask them
  during process and
  product development
 Who should be included
  in developing the
  “answers?”
                                            Sustainability Guide
 Integrates business and material life-cycle stages
 Considers key sustainability criteria early in development
  and in all stages
 Identifies sustainability considerations by value chain
  stages and throughout corporate organizational functions
 Identifies who, what, when: corporate functions, decision
  maker; considerations and evaluation criteria; making
  decisions
 Potential to rank how well sustainability considerations are
  addressed at each stage
                       Business Strategy      Ind
     Ups                                      ustr
                                                         Co
     trea       Pro          Distr            ial              End
                                                         nsu
       m        duc          ibuti            Cus              -of-
                                                         mer
      Inp       tion         on               tom              Life
                                                         Use
       ut                                     er
                       Product & Process      Use
                                           Development
                                                                      Guide Structure & Organization
                                                                                                                                                                                                                      R&D Stages                                                                                                                                              End of Life
                                    Value Chain Stages




                                                                                                                                                                                                                                                                                                                             Industrial Consumer
                                                                                                                                                                                                                                                                     Commercialization
                                                                                                                                   Business Strategy




                                                                                                                                                                        Idea Generation /
                                                                                                                                                       Upstream Input
                                                                                                                                   Development &




                                                                                                                                                                                                                                                                                                                                                       Customer Use
                                                                                                                                                                                                                                           Development




                                                                                                                                                                                                                                                                                                              Distribution
                                                                                                                                                                                                                                                                                             Production
                                                                          Sustainability Considerations




                                                                                                                                                                        Innovation
                                                                                                                                   Alignment




                                                                                                                                                                                                                              Definition
Corporate Functions




                                                                                                                                                                                                                                                                                                                                                                                       Molecule
                                                                                                                                                                                                                                                         Scale-up
                                                                                                                                                                                            Concept




                                                                                                                                                                                                          Scoping




                                                                                                                                                                                                                                                                                                                                                                           Facility
                                                                                                                                                                                                                                                                                                                             Use
                                                                                                                                                                                                                                                                                                                                                                                                           Composite Checklist –
                                                                      Strategic Considerations
                                                                         Business Strategy & Core Values
                                                                               What is the company's global strategy and how           n
                        Chart on corporate functions to involve or       can it support sustainable development?
                                                                             What are the company's regional strategies and
                                                                         how can they support regional sustsainable                     n
                           consult at each value chain stage             development?
                                                                              What are the company's core values (short- and
                                                                                                                                        n



                                                                                                                                                                                                                                                                                                                                                                                                            Questions to guide
                                                                         long-term?
                                                                              Decide how to use sustainability in the
                                                                         business strategy.                                                                                      n                                                         n             n           n
                                                                         SD Objectives & Targets

                                                                               Does the company have objectives to
                                                                         support sustainable development (e.g. emission
                                                                         reductions, renewable energy use, conducting                   n



                                                                                                                                                                                                                                                                                                                                                                                                            sustainability
                                                                         life-cycle analyses of products, developing
                                                                         renewable-resource based products?)
                                                                               What are the company's metrics and
                                                                         targets related to sustainable development?                    n                                                                                     n            n             n           n                       n                n
                                                                         Core Competencies

                        Highlights of sustainability considerations          What are the company's core competencies and              n



                                                                                                                                                                                                                                                                                                                                                                                                            consideration at each
                                                                         how can they support sustainable development?

                                for each value chain stage               Market Drivers
                                                                               What are the key markets for the business?              n
                                                                               Are there sustainability-related trends, drivers
                                                                          and opportunities in these markets?                           n
                                                                               Can feedstock price, availability and acces be
                                                                                                                                                       n



                                                                                                                                                                                                                                                                                                                                                                                                            value-chain stage
                                                                          maintained over the long-term?
                                                                               Would customer/stakeholder concerns affect the
                                                                                                                                                       n
                                    Tools & Resources                    
                                                                          future use of the feedstock?

                                                                               Can a new product/process enhance the
                                                                         company's reputation in any area of sustainable                                                         n
                                                                         development (economic, social, or environmental)?
                                                                              Is there a demand for sustainable products by
                                                                         the end-use consumer?                                                                                   n
                                                                              What is the competitive environment for a new
                                                                         sustainability technology?                                                                              n
                                                                         Regulatory Drivers




                      Main Page: Overview
           Key corporate functions
                                                                                                                                                                                                                                                                                                                                                                                                           Summary Table –
                & resources
                                                                                                                                                                                                                                                                                                                                                                                                            Form to record answers,
                                                                                                                                                                                                                                                                                                                                                                                                            action plans, responsible
                                                                                                                                                                                                                                                                                                                                                                                                            parties, status and
                                                                                                                                                                                                                                                                                                                                                                                                            documentation


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                                                                                                                                                                                                                                                                                                                                                                                                              Scoring Framework
                                                                                                                                                                                                                                                                                                                                             Pr
                                                                                                                                                                                                      R




                                                                                                                 Sustainability Dimension
                                                                                                                 Resource Usage                                                                                     0                                    0                                                0                                        0                                              0
                                                                                                                    Energy Usage                                                                                    0                                    3                                                3                                        3                                              0
                                                                                                                    Water Usage                                                                                     0                                    0                                                3                                        3                                              0
                                                                                                                    Land Usage                                                                                      4                                    3                                                3                                        0                                              0



                                                                                                                                                                                                                                                                                                                                                                                                               Highlight issues and
                                                                                                                 Human Health Factor                                                                                0                                    0                                                0                                        0                                              0
                                                                                                                    Toxicity                                                                                        0                                    2                                                3                                        3                                              0
                                                                                                                    Hazards                                                                                         0                                    0                                                3                                        3                                              0
                                                                                                                    Process Safety                                                                                  0                                    2                                                3                                        3                                              0
                                                                                                                 Environmental Impact                                                                               0                                    0                                                0                                        0                                              0
                                                                                                                    GHG Emissions                                                                                   1                                    3                                                3                                        3                                              0



                                                                                                                                                                                                                                                                                                                                                                                                               opportunities, updated
                                                                                                                    Air Emissions                                                                                   0                                    3                                                3                                        2                                              0
                                                                                                                    Solid Waste                                                                                     4                                    5                                                3                                        3                                              0
                                                                                                                 Societal Impact                                                                                    0                                    0                                                0                                        0                                              0
                                                                                                                    Local Community Impact                                                                          1                                    0                                                3                                        3                                              0
                                                                                                                    Global Societal Impact                                                                          4                                    0                                                3                                        3                                              0
                                                                                                                 Economical Impact                                                                                  0                                    0                                                0                                        0                                              0



                                                                                                                                                                                                                                                                                                                                                                                                               at each stage
                                                                                                                    Corporate Financials                                                                            0                                    0                                                3                                        2                                              0
                                                                                                                    Customer Financials                                                                             0                                    0                                                3                                        2                                              0

                                                                                                                                                                                                                                                                                                          1                  Positive Influence
                                                                                                                                                                                                                                                                                                          2                  Slight Positive Influence
                                                                                                                                                                                                                                                                                                          3                  Neutral
                                                                                                                                                                                                                                                                                                          4                  Slight negative
                                                                                                                                                                                                                                                                                                          5                  Negative impact
                                                                                                                                                                                                                                                                                                          0                  No data
                                       Elements of the Guide

                               Value Chain Stages
Corporate Functions




                      Corporate functions to involve or
                      consult at each value chain stage.




                       Sustainability considerations
                             Engaging Key Corporate Functions

                                  Value Chain Stages

                                               Value Chain Axis
Corporate Functions




                                   • Business Strategy Development
                                   • Upstream to
                      Corporate functionsInputinvolve or
                                   • R&D
                      consult at each value chain stage
                                         • Idea Generation
                                         • Concept
                                         • Scoping
                                         • Definition
                                         • Development
                                         • Scale up
                                         • Commercialization
                                   • Production
                                   • Distribution
                                   • Industrial Consumer Use
                       Sustainability considerations
                                   • Customer Use
                                   • End of life
                                         • Facility
                                         • Molecule
                             Engaging Key Corporate Functions

                                    Value Chain Stages

                                        Corporate Functions Axis
Corporate Functions



                         (each box represents a different corporate function that is critical
                                   to driving sustainability in the organization)

                        • Executive functions
                      CorporateManagement to involve or
                      consult at each value chain stage
                        • Financial
                        • Business Management
                        • R&D
                        • EHS
                        • Engineering
                        • Manufacturing / Operations
                        • Logistics / Supply Chain
                        • Sales
                        • Customer Technical Service/Support
                        • Marketing
                       Sustainability considerations
                        • Communications
                        • Public Relations
                        • Human Resources
                        • Legal
                        • Information Technology & Management
                              Sustainability Considerations


      Environmental
                                          Energy use, material intensity,
                       Resource Use       water use, land use

                       Environmental      GHG emissions, air emissions,
                          Impact          solid waste, (pollutant effects)

                                          Toxic reduction, hazards, process
                       Health & Safety    safety
     Social




                                          Workers’ well-being, local
                       Societal Impact    community impacts/QOL, global
                                          societal impacts/contributions
      Econ.




                                          Financials along value-chain
                      Economic Impact     (corporate, customers, …)
                                          Internal process, value-chain
Perspective




                        Management        partnership, stakeholder
 Business




                                          engagement
                                          Alignment with business strategy,
                      Business Strategy   core values & competencies,
                                          market & regulatory drivers
                                                                                                                Sustainability Considerations
                                                                                                                                                                     Checklist along the Value Chain
                                                                                                                            Product & Process Development                                                                                                                  End of Life




                                                                                                                                                                                                                                   Industrial Consumer
                                                                                                                                                                                   Commercialization
                                                       Business Strategy




                                                                                            Idea Generation /
                                                                           Upstream Input
                                                       Development &




                                                                                                                                                                                                                                                         Customer Use
                                                                                                                                                       Development




                                                                                                                                                                                                                    Distribution
                                                                                                                                                                                                       Production
    Sustainability Considerations




                                                                                            Innovation
                                                       Alignment




                                                                                                                                          Definition




                                                                                                                                                                                                                                                                                    Molecule
                                                                                                                                                                       Scale-up
                                                                                                                  Concept




                                                                                                                                Scoping




                                                                                                                                                                                                                                                                        Facility
                                                                                                                                                                                                                                   Use
Strategic Considerations
   Business Strategy & Core Values

        What is the company's global strategy and          n
    how can it support sustainable development?
       What are the company's regional strategies
    and how can they support regional sustsainable          n
    development?
        What are the company's core values?                n
   SD Objectives & Targets
        How can sustainability support the business
                                                                                                                                                                                  Value Chain Axis
   strategy?                                                n

         Does the company have objectives to
   support sustainable development (e.g. emission
   reductions, renewable energy use, conducting             n                                        n
   life-cycle analyses of products, developing
   renewable-resource based products?)
         What are the company's metrics and
   targets related to sustainable development?              n                                        n                                                                                                 n            n
   Core Competencies
         What are the company's core
   competencies and how can they support
   sustainable development?
                                                            n                                        n          Sustainability Considerations
   Market Drivers
         What are the key markets for the
                                                            n                                        n
   business?
         Are there sustainability-related trends,
                                                                                                                Specific questions, applied and
                                                            n                                        n
   drivers and opportunities in these markets?
         Is there a demand for sustainable products
                                                                                                     n
                                                                                                                modified along the value chain
   by the end-use consumer?
         What is the competitive environment for a
   new sustainability technology?                                                                    n              whenever appropriate
         How would new environmentally sound
   technologies, service or information-based                                                        n                                                                                                              n                  n                 n
   offerings meet the market or customer need?
         Can a new product/process enhance the
   company's reputation in any area of sustainable
   development (economic, social, or                                                                 n
   environmental)?
                                                                              Summary Table
            Form to record answers, action plans, responsible parties, status
            and documentation

                                                                              Responsi
                                 Summary of                                      ble      Priority/     Sources &
Question                          Findings                 Action Items        Parties     Status     Documentation
Can feedstock price,         Willow shows very                                                        …
availability, and access     little fluctuation in price
be maintained over the       & availability                                                   
long-term?

How energy intensive is      Willow is more energy         Investigate        R&D                     …
the feedstock? Which         efficient than corn, but      flexibility for
feedstock materials is the   not necessarily the           multiple
most energy intensive        most energy efficient.        feedstock
and are there energy-
efficient alternatives?

Would the new product or     Willow emits less             Investigate rail   Logistics               …
process reduce GHG           GHG than corn, but            options, use of
emissions over the entire    distribution emissions        biodiesel for
lifecycle?                   remain significant            trucks
                                                                                                                                                                                      C
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   W   a et   r  U   s  a  g e                                  0                           1                       1                      1                        1
   L a  n d U     s  a  g  e                                    1                           1                       1                      1                        1
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   Ari   E   m   is  s oi   n  s                                1                           1                       1                      1                        1
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Sustainability Dimension                                 R
Resource Usage                                                    0                             0                       0                      0                        0
   Energy Usage                                                   0                             3                       3                      3                        0
   Water Usage                                                    0                             0                       3                      3                        0
   Land Usage                                                     4                             3                       3                      0                        0
Human Health Factor                                               0                             0                       0                      0                        0
   Toxicity                                                       0                             2                       3                      3                        0
   Hazards                                                        0                             0                       3                      3                        0
   Process Safety                                                 0                             2                       3                      3                        0
Environmental Impact                                              0                             0                       0                      0                        0
   GHG Emissions                                                  1                             3                       3                      3                        0
   Air Emissions                                                  0                             3                       3                      2                        0
   Solid Waste                                                    4                             5                       3                      3                        0
Societal Impact                                                   0                             0                       0                      0                        0
   Local Community Impact                                         1                             0                       3                      3                        0
   Global Societal Impact                                         4                             0                       3                      3                        0
Economical Impact                                                 0                             0                       0                      0                        0
   Corporate Financials                                           0                             0                       3                      2                        0
   Customer Financials                                            0                             0                       3                      2                        0

                                                                                                                        1          Positive Influence
                                                                                                                        2          Slight Positive Influence
                                                                                                                        3          Neutral
                                                                                                                        4          Slight negative
                                                                                                                        5          Negative impact
                                                                                                                        0          No data
    Case Study Background:
  Assessing a Biofuel Project
Dr. Javad Tavakoli & Dr. David Taschler
               Advisors
           Lafayette College
                                          Process of Evaluation
                             Our Hypothetical Company

 Information
   • Located in upstate New York
   • Purchases corn primarily from
     mid-western states
   • Has onsite corn ethanol refinery
   • Grows willow biomass onsite
   • Has onsite willow ethanol
     refinery
 Focus of study:
   • Not to consider the most
     sustainable industry possible
   • Developing a plausible vantage
     point to make comparisons
     between corn and willow ethanol
                        Test Case: Biofuels Plant

 Established process for biofuel from publicly
  available information


 Answered Guide questions based on internet
  sources & personal/professional opinion/insights


 Used publicly available information on willow and
  corn-derived feedstocks


 Focused on issues with sustainability and energy
  efficiency
                                                Guide Questions
Can feedstock price, availability and access be maintained over the
long-term?
Corn derived feedstock
    Corn Feedstock expected to continue to see dramatic increase in demand
     resulting in increase in price.
    New technology in feedstocks may cause drop in demand and price.

Long-term viability of corn feedstock not likely to be maintained

Willow
     Demand for low-value timber, willow, has dramatically decreased in New
      York state recently
     Current growth rate exceeds removal by 317%. (Bower, 2007)
     Production potential of 188 million dry tons of willow in NYS by 2008
     Long term market should be stable (Bower, 2007)
Willow feedstock shows very little fluctuation in price or availability
                                         Guide Questions

 How energy intensive is the feedstock?
 Which feedstock materials is the most energy
 intensive and are there energy-efficient alternatives?

      Willow is more energy efficient than corn, but not
      necessarily the most energy efficient option.


 Would the new product or process reduce GHG
 emissions over the entire lifecycle?

Willow feedstock has less GHG emissions compared to corn, but
sequestration depends on farming conditions and GHG emissions in
other life-cycle stages remain significant
                                                                                              Example
                                                                              Responsi
                                 Summary of                                      ble      Priority/     Sources &
Question                          Findings                 Action Items        Parties     Status     Documentation
Can feedstock price,         Willow shows very                                                        …
availability, and access     little fluctuation in price
be maintained over the       & availability
long-term?                                                                                   
How energy intensive is      Willow is more energy         Investigate        R&D                     …
the feedstock? Which         efficient than corn, but      flexibility for
feedstock materials is the   not necessarily the           multiple
most energy intensive        most energy efficient.        feedstock
and are there energy-
efficient alternatives?

Would the new product or     Willow emits less             Investigate rail   Logistics               …
process reduce GHG           GHG than corn, but            options, use of
emissions over the entire    distribution emissions        biodiesel for
lifecycle?                   remain significant            trucks
                                                                                       Scoring Framework
                                                     Product &R&D Stages
                                                              Process Development
       0                     1              2                       3                            4                            5                      6
Idea Generation /         Concept        Scoping                Definition                  Development                    Scale-up            Commercialization
   Innovation




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                                         R
              Sustainability Dimension
             Resource Usage                    0                  0                     0                       0                     0
                Energy Usage                   0                  3                     3                       3                     0
                Water Usage                    0                  2                     3                       3                     0
                Land Usage                     4                  3                     3                       0                     0
             Human Health Factor               0                  0                     0                       0                     0
                Toxicity                       0                  2                     3                       3                     0
                Hazards                        0                  0                     3                       3                     0
                Process Safety                 0                  2                     3                       3                     0
             Environmental Impact              0                  0                     0                       0                     0
                GHG Emissions                  1                  3                     3                       3                     0
                Air Emissions                  0                  3                     3                       2                     0
                Solid Waste                    2                  3                     3                       3                     0
             Societal Impact                   0                  0                     0                       0                     0
                Local Community Impact         1                  2                     3                       3                     0
                Global Societal Impact         4                  0                     3                       3                     0
             Economical Impact                 0                  0                     0                       0                     0
                Corporate Financials           0                  2                     3                       2                     0
                Customer Financials            0                  0                     3                       2                     0

                                                                                        1              Positive Influence
                                                                                        2              Slight Positive Influence
                                                                                        3              Neutral
                                                                                        4              Slight negative
                                                                                        5              Negative impact
                                                                                        0              No data
                                        Summary

 Sustainability Guide identifies key sustainability
  questions and criteria in a gated process/product
  development scheme
 Use of Guide increases the level of discourse on
  sustainability issues in a short time period
 Guide offers a holistic framework for
  consideration of progress down the path towards
  sustainability
 Publication: 4th qtr 09 Contact ifs@aiche.org
             Thank you!

Questions?

				
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