2007.PEL.7209 7
Summary
Thesis subject
This thesis is about a new method supported with software tools, to objectively evaluate a company on sustainability aspects, based on research to combine Cradle to Cradle principles with the Delft Systems Theory.
Background
The KICI foundation strives to be more sustainable and is interested in a means to evaluate and optimize their sustainability performance. The Cradle to Cradle method had drawn KICI's attention to this recently popularized interpretation of sustainability. However, the process of implementing Cradle to Cradle is still immature and has unsolved issues. Therefore the Delft Systems Approach, specifically useful for its systematic analysis possibilities within production and logistical systems, was used to analyse Cradle to Cradle. The Delfts Systems Approach (DSA) uses conceptual models, such as the Process-Performance model (PROPER-model) used in this research. During the analysis process it became clear that Cradle to Cradle is always an issue spanning an entire supply chain. Therefore the PROPER model was combined with the Supply Chain Operations Reference model (SCOR). Combining the three parts: the Cradle to Cradle sustainability interpretation, the Delft Systems Approach and the Supply Chain Reference Model provided new ways to evaluate and optimize systems, with KICI as test-case for the developed method.
What is "sustainability" in terms of the Delft Systems Approach?
The basic objective of every system is to survive, to perpetuate its existence. Sustainability adds the requirement that the objective has to be reached without compromising other (future) systems in their ability to exist. The interpretation of "sustainability" is changing. The original approach is often referred to as Eco-Efficiency. It is currently the most commonly practiced interpretation of
sustainability. The approach of Eco-Efficiency is to improve the systems efficiency by minimizing the actual sacrifices; i.e. to use fewer materials and to use materials that are a lesser burden on the environment. The recently popularized Cradle to Cradle design method, referred to as
Eco-Effectiveness, is often introduced as the renewed understanding of sustainability. Its principles offer an alternative view to current sustainable design strategies such as Life Cycle Analysis. The approach of Eco-Effectiveness is to maximize useful nutrient share in the output flow of a system. To that extent products and materials have to meet strict requirements in order to prevent pollution of nutrient flows. Nutrients have to follow a continuous cycle in either the Biosphere (biodegradable nutrients) or the Technosphere (infinitely recyclable materials). Stated otherwise: the waste of one system has to be food for the next. This change of interpretation of sustainability can be described as an expansion of perspective from a process level to a functional level.
Modeling Cradle to Cradle systems
To what extent can the Delft Systems Approach aid the development of a model for evaluation and optimization based on Cradle to Cradle design philosophy?
2007.PEL.7209 8
Duplicate of Fig. 3. Chapter 3: The PROPER conceptual model representing SCOR. The model indicates inputs and outputs that may be relevant for sustainability aspects.
The PROPER-SCOR model shows the order, material and resource flows and the control elements of the PROPER model. In- and output flows are color coded to indicate their relevance to People, Planet and Profit aspects. The blocks (called functions) represent the transformation from input to output flow, for example from base material to product. These functions match the functions of the SCOR reference model and define the life cycle steps of a product. The PROPER-SCOR has a hierarchical composition with different levels of detail (similar to the SCOR model). It may be used to model many different configurations of similar processes and is designed to be reconfigurable.
Performance measurement
2007.PEL.7209 9 Therefore three new Cradle to Cradle performance indicators were proposed, in an attempt to clarify the positive or negative contribution of a single part to the Cradle to Cradle chain as a whole: • Flow Identity: the share of recycled/recyclable content in a flow.
• Flow Quality: the composition of a material flow, based on a material classification system. • Renewable Energy: the share of renewable energy input compared to the total energy input. Cradle to Cradle focuses on the material flows of the PROPER-SCOR model, which is also the subject of these indicators. For additional sustainability performance indicators (People and Profit) the High-5 handbook for sustainability reporting can be used. A three-step approach was developed to objectify and standardize the performance indicators:
1. A selection of measurable (objectified) performance indicators is made. The selection is arranged in People, Planet and Profit groups.
2. Weight assessment of these performance indicators has to be made possible. A Multi Criterion Decision tool using pair-wise comparison methods was developed to aid determining a weight factor for each aspect.
3. The stakeholders must specify how the measured data will be translated into a performance score. A standardized scale from -1 to 1 was chosen where:
o 1 equals the best possible performance (i.e. "best in class") o 0 equals neutral performance (i.e. sector average)
o -1 equals insufficient performance ("worst case")
This three-step approach ensures that a well-informed analysis can be made. Test case
The research objective was the development of a method or model for practical use that can evaluate and optimize the performance (People, Profit, Planet) of a production or logistics chain. Stichting Kleding Inzameling Charitatieve Instellingen (the KICI foundation) served as a test case of this topic during the research period. KICI collects second hand clothing and sells it in bulk quantities to its customers. KICI's customers sort and process the textiles and resell them. The PROPER-SCOR model for KICI and its customers showed the options for Cradle to Cradle improvement were outside the influence sphere of KICI, namely with the producers of clothing and the resellers of the collected second hand textiles. KICI's sustainability performance showed to be highly dependable on the choice of KICI's customers. A preliminary selection of six People, four Planet and four Profit aspects was made to evaluate a method to select customers in a way that provides maximum benefit in terms of overall sustainability performance. A questionnaire on the aspects provides input from KICI's customers. Logistical data from KICI provides input to calculate CO2-emissions and transportation
costs (to deliver textiles to the customers). Conclusions
The Delft Systems Approach of an ideal Cradle to Cradle system showed the complexity of creating a Cradle to Cradle structure out of the current company structures (Cradle to Grave). Combining the two methods provides a way to evaluate sustainability, but the required information to evaluate a
