Life Cycle Assessment:Life Cycle Assessment: Implications for performance Implications for performance

management of oil sands developmentmanagement of oil sands development

Life Cycle Assessment of Oil Sands TechnologiesLife Cycle Assessment of Oil Sands TechnologiesKick-off MeetingKick-off Meeting

November 3, 2006November 3, 2006

Sarah Jordaan and Dr. Irene HerremansSarah Jordaan and Dr. Irene HerremansUniversity of CalgaryUniversity of Calgary

IntroductionIntroduction LCA as tool for developing indicatorsLCA as tool for developing indicators

Trends in reporting/impact assessmentsTrends in reporting/impact assessments Stakeholder expectations Stakeholder expectations

Life Cycle Assessment (LCA) and Life Cycle Assessment (LCA) and significance to performance managementsignificance to performance management Help define roles and responses of actors Help define roles and responses of actors Focus management efforts on the value chain Focus management efforts on the value chain

for strategic investment for strategic investment Forward looking approach opens door for Forward looking approach opens door for

developing predictive indicatorsdeveloping predictive indicators

Performance indicators: OverviewPerformance indicators: Overview What are indicators?What are indicators?

Forms of feedbackForms of feedback

Indicator TypesIndicator Types Sustainability, environmental, social, economicSustainability, environmental, social, economic Input, output, outcome Input, output, outcome Leading, laggingLeading, lagging

Selection of indicatorsSelection of indicators measurable measurable easy to interpret easy to interpret require action if negative trends occurrequire action if negative trends occur clear benefits if positive trends occurclear benefits if positive trends occur

Relationship to LCARelationship to LCA

Goal and Scope

Definition

Inventory Analysis

Impact Assessment

InterpretationDataDecision Maker

Action and performance

improvements

Modified from EPA (1993)

Determining Roles and ResponsesDetermining Roles and Responses

Contingency table for environmental and social controls at the firm level

Market controls(profit center approach)

-Emissions trading- Offsets

Direct observation- Monitoring

Cultural shift- Education and training

- Code of Ethics- Public-private partnership

Standard operating procedures

- Environmental Management Systems (e.g. ISO 14001)

Input easy to measure Input difficult to measure

Output difficult to measure

Output easy to measure

For discussionFor discussion What is your experience with What is your experience with

environmental and social performance environmental and social performance management?management?

Is standardizing metrics an important thing Is standardizing metrics an important thing to do for oil sands development and to do for oil sands development and technologies? Specifically, is it important technologies? Specifically, is it important for life cycle indicators? Why or why not? for life cycle indicators? Why or why not?

ReferencesReferences

Organization for Economic Co-operation and Development (OECD). Organization for Economic Co-operation and Development (OECD). (1993). (1993). OECD Core Set of Indicators for Environmental Performance OECD Core Set of Indicators for Environmental Performance Reviews.Reviews. A Synthesis Report by the Group on the State of the A Synthesis Report by the Group on the State of the Environment. OECD, Paris. 35 p.Environment. OECD, Paris. 35 p.

Pflieger, J., Fischer, M., Kupfer, T., and P. Eyerer. (2005). The contribution of life cycle assessment to global sustainability reporting of organizations. Management of Environmental Quality: An International Journal, 16(2): 167-179

Schuh, C. (2002). Performance Indicators for Indoor Air Quality. PhD Schuh, C. (2002). Performance Indicators for Indoor Air Quality. PhD dissertation, Environmental Design, University of Calgary. dissertation, Environmental Design, University of Calgary.

Schuh, C. and D. Thompson. (2002). Environmental Indicators, Chapter Schuh, C. and D. Thompson. (2002). Environmental Indicators, Chapter 12 in Tools for Environmental Management: A practical Introduction and 12 in Tools for Environmental Management: A practical Introduction and Guide. New Society Publishers, Gabriola Island, BC. Guide. New Society Publishers, Gabriola Island, BC.

U.S. Environmental Protection Agency. (1993). U.S. Environmental Protection Agency. (1993). Life Cycle Assessment: Life Cycle Assessment: Inventory Guidelines and PrinciplesInventory Guidelines and Principles (EPA 600/R-92/245). Cincinnati, OH: (EPA 600/R-92/245). Cincinnati, OH: U.S.EPA, Office of Research and Development, Risk Reduction U.S.EPA, Office of Research and Development, Risk Reduction Engineering Laboratory.Engineering Laboratory.