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www.sdu.nhs.uk www.sdu.nhs.uk
London November 2012
Sustainable Health Services
www.sdu.nhs.uk www.sdu.nhs.uk
www.sdu.nhs.uk www.sdu.nhs.uk
www.sdu.nhs.uk www.sdu.nhs.uk
www.sdu.nhs.uk www.sdu.nhs.uk
(John Schaar)
“The future is not a result
of choices among
alternative paths offered by
the present,
but a place that is created
- first in the mind and will,
next in activity.”
The world’s leading sustainability consultancy
Product Comparisons and the Need for Product Rules
Tom Penny Senior Consultant 30th November 2012
The world’s leading sustainability consultancy
A management tool! ■ Measure, manage and reduce
■ Covers all products in sector
■ Internal product appraisals
■ Hotspot analysis
■ Target reductions
■ Eco-design initiatives
■ Track and report performance over time
■ Public reporting
vs
What the Sector Guidance Does (and Doesn’t Do)
7
Guidance is not specific enough to support external comparative assertions between similar products
The world’s leading sustainability consultancy
Need for Product Rules
8
To support:
■ Product labelling
■ Performance claims
■ Quantitative procurement/prescription decisions
■ Best developed for products where there is a choice and the opportunity to achieve significant GHG benefits is significant
The world’s leading sustainability consultancy
What Product Rules Need to Address
9
To allow accurate comparisons guidance needs to be made into rules
Same issues as sector guidance but more specific to product groups:
■ Functionality & unit of analysis
■ Boundaries of system appraised
■ Allocation methods
■ Data requirements
Must be prescriptive but fair
Product Rules are required to achieve meaningful comparisons
The world’s leading sustainability consultancy
GHG Protocol Product Standard
10
GHG
Protocol
Product
Standard
Sector
Guidance
Product
Rules
Consistent
Product
Comparisons
■ Sector guidance: offers a route to assist sectors in completing product carbon footprints
■ Product rules: provide additional specifications that enable valid
comparisons of two or more products to be made
Two types of supplementary documents described:
The world’s leading sustainability consultancy
How Product Rules are Developed
11
Stakeholder group is assembled to develop product rule ■ Affected parties
■ Diverse with relevant expertise
Public consultation process and road testing phase
Peer review is undertaken ■ Conform to GHG Protocol
■ Possible to gain the ‘Built on GHG Protocol’ through review by GHG Protocol
Additional considerations ■ There are safeguards in place to prevent conflict of interest
■ The product rules are developed to have an international reach
■ A process for regular review and updates is in place
The world’s leading sustainability consultancy
Where to Start?
12
Consider which products would benefit from more specific guidance
■ High sales volume
■ Products with significant GHG emissions
■ Where meaningful functional comparisons exist
■ Where claims are currently being made
Where healthcare sector and companies want to differentiate between product choices
Where they can make a difference!
The world’s leading sustainability consultancy
About ERM ERM is one of the leading sustainability consultants worldwide, providing environmental, health and safety, risk and social consulting services in influential assignments. Over 3600 employees globally in 40 countries. Over the past five years we have worked for approximately 60% of the Global Fortune 500. 39 years of experience in the field with in-depth subject matter and sector experience.
Who to talk to at ERM:
Tom Penny
Senior Consultant
+44 (0) 203 206 5386
tom.penny@erm.com
GSK: Role of carbon footprinting November 2012
Who we are and what we do We are a science-led global healthcare company. We make innovative medicines, vaccines, and consumer healthcare products used by millions of people worldwide. Our products contribute directly to the health of patients and consumers, and indirectly to the wider well-being of the economy and society. We are committed to generating sustainable performance and returns for shareholders in a responsible way. To improve the quality of human life by enabling people to Do More, Feel Better, Live Longer
What we do
We research and develop a broad range of innovative products. We have three primary business areas:
Pharmaceuticals Vaccines Consumer Healthcare
We develop and make available
medicines to treat a broad range of serious and chronic diseases.
£18.7bn Turnover
68% of group
We research and make vaccines for children and adults that protect against infectious disease.
£3.5bn Turnover
13% of group
We make a range of innovative consumer health products in four global categories of Wellness, Skin Health, Oral Health and Nutrition.
£5.2bn Turnover
19% of group
£27.4bn group sales
GSK High Level Environmental Sustainability Strategy –
Carbon Neutral Value Chain by 2050
2020 2015
5.6 million mt CO2 eq. 0.2 million mt CO2 eq. ? 2.6 million mt CO2 eq.
MATERIALS OPERATIONS DISTRIBUTION USE END OF LIFE
GSK Environmental Strategy
PROPELLANTS
5.2 million mt CO2 eq. <1%
GSK Value Chain Carbon Footprint is 14 million mt CO2 eq. per annum
10% reduction in overall
Carbon Footprint
25% reduction in overall
Carbon Footprint
20% reduction
(Direct Ops)
20% reduction
(Value Chain)
• 2.5% Mass efficiency
• 25% Reduction in Operational
waste to landfill
• 25% Reduction in hazardous
and non-hazardous waste
• 5% Mass efficiency
• Zero Operational waste to landfill
• 50% Reduction in hazardous and
non-hazardous waste
Our planet – Product Footprinting
Growing our business while protecting the natural resources we all need for the future
MDI 200 actuation device
293 g CO2 eq. per actuation
DPI 60 dose device
16 g CO2 eq. per dose
Current mode of disposal for asthma inhaler
Q3A. How do you currently dispose of your/your child’s asthma inhaler device when you
have finished using it?
Base: All respondents (503) Survey performed by Kantar Health
Put it in the
domestic
waste bin at
home
63%
23% Put it in the recycling bin at home 11%
Take to a pharmacy that offers a recycling service
Other mentions ≤ 10%
Consumer Healthcare
Our planet case study – reducing emissions from our inhalers
Around 40% of our carbon footprint comes from
propellants released from our inhalers.
Any inhaler not just GSK
New ways of managing manufacturing waste
Pharma distribution supplier: no extra trips needed,
used to handling medicines, good tracking processes
and willingness to partner
Pharmacist:Patient interactions
Many being returned full or partially full
Worked with supplier to use recycled aluminium
(9ktCO2e saved)
Complete the Cycle progress
Our planet – Product Footprinting
Growing our business while protecting the natural resources we all need for the future
Horlicks 25 g serving
125 g CO2 eq. per serving
-
0.0500
0.1000
0.1500
0.2000
0.2500
0.3000
0.3500
0.4000
0.4500
Form Raw Mats
Pack Raw Mats Energy Transport Waste
GSK UK
GSK India
Footprint pattern quite different
Milk supply is key
20,000+ farmers
Cattle Development Centres
Switching from coal to biomass
MDI 200 actuation device
293 g CO2 eq. per actuation
DPI 60 dose device
16 g CO2 eq. per dose
Benefits of footprinting
Better understand of whole value chain
Identify hotspots, risks, threats, opportunities
Prioritisation (which products, stages etc.)
Involves the whole business and suppliers
Robust/standard approach
Comparison (between identical molecules)
Help with future product strategies
Aligns with customer (NHS, Tesco, Walmart...)
Country business unit footprints
www.sdu.nhs.uk www.sdu.nhs.uk
Any Questions? .
www.sdu.nhs.uk www.sdu.nhs.uk
Focus Groups
• Topic 1: how should the guidance be taken
forward?
-What actions can group members take to
facilitate this?
• Topic 2: what 3 future projects could facilitate
pharmaceutical and medical device use as part of
sustainable healthcare pathways?
- What actions can group members take to
facilitate this?
www.sdu.nhs.uk www.sdu.nhs.uk
Thank you
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