Introduction toKorean Eco-efficiency Activities
2005. 12. 12
Jeehye Park, Researcher
ECO-FRONTIER
in association with KonKuk Univ.

Contents• Overview of Eco-efficiency Activities in Korea• Driving Forces in Korea• Eco-2 Project• Environmental Labeling• Research Activities• Corporate Voluntary Practices• Development and Diffusion of Eco-efficiency Indicators and S/W• Project Description• Expected Outcomes• Project Stages• Major Tasks in 2nd Year
• InStep EE: Toolbox Approach

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

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Overview ofEco-efficiency Activities in Korea

Driving Forces in Korea
Eco-2 Project
Fostering both environment and economy

Environmental Labeling
Encouraging communication for sustainable consumption

Research Activities

Environment Economy

Developing methodologies and pilot projects

Corporate Voluntary Practices
Experimenting eco-efficiency as a management tool forcompetitive advantages

Best Practices around the World
Leading development in the field; WBCSD, NRTEE, Wuppertal
Institute, JEMAI, etc.
Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

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Eco-2 ProjectEco-2 Project
Regarding corporate environmental management…

• Environmental Reporting• Environmental Performance Evaluation• Environmental Declaration of Products• Environmental Accounting, etc.

• Launched in 2001, seeks to achieve both
environmental conservation and economic
development goals in a unified manner.
• Key components include•developing environmental industry andtechnology,•strengthening resource conservation andrecycling,•applying demand-side water management,Æ This provokes the needs of mutual
growth of economic and environmental
performance in Korean industries.

•enhancing the environmental information
infrastructure, and•creating a sustainable development indicator.
Source: Korean Ministry of Environment, 2001

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

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Environmental Labeling• Environmental Declaration of Products(Type III) since 2001
• Provides quantified environmental informationon the life cycle of a productEnvironmental Declaration ofProducts• 255 certified products from 8 companies(Samsung electronics, LG electronics, etc.)• With an aim to facilitate market-driven
environment protection and improvement• Ongoing discussion on EE labeling programs
into the revision of the law “Promotion ofenvironmentally sound industrial structure”
Æ This sheds lights on the future of EE as
one of product labeling measures.

http://www.edp.or.kr
Source: Korean Ministry of Environment, 2005

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

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Research Activities• Clean production index• Green productivity index• To utilize gate-to-gate approach• Green productivity index• To help establish strategy for enhancing
productivity and environmental performance•Eco-efficiency of plastic waste recycling• To enable decision makers to select the mostenvironmentally friendly and economicallyefficient alternativeÆ This encourages methodologicaldevelopment and provides up-to-date
information to Korean industries.

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

GP Index =Selling Price/LCC
EI• Eco-efficiency of plastic wastes
recycling• Utilize the value by cost-benefit
analysis and eco-cost from LCA result

EE Indicator =Value
Eco-cost

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Corporate Voluntary Practices
Eco-efficiency index as..
• Key sustainability indicators disclosed insustainability/environmental reports• An evaluation tool for the product design andR&D

Æ In the stage of finding values of theeco-efficiency as a management tool

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

An environmental manager in certain
Korean company said…
“We as a company are to maximize theprofit from the products and, at thesame time, minimize the environmental
risk.. Therefore we seek “what is optimalfor us” by monitoring the eco-efficiencyof our firm”

7Corporate Voluntary Measures• Eco-efficiency information is utilized in Eco-design process in order to determine
and improve environmental quality at product development process.
• Applied to some printer and refrigerator models in 2004
• Expected to be in force for all new product development from 2006
Product development process
Concept
Set environmental
quality objectives
Eco-design activities

PlanDevelopment

Production

Assess and improve
Final
environmental
inspection
performance and quality•Resource efficiency•Environmental hazardousness•Energy efficiency

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

8Corporate Voluntary Measures• LCA and Environmental Accounting module as parts of the Eco-design system• Eco-Design strategy & targets•Info of suppliers & suppliesEco-Design

Green Purchasing

LCA Resultsof rawmaterials

Hazardous
substances inmaterials

Production cost

Hazardous substances in materials
LCA Results

Eco-Design
Calculation logic

Environmental
Accounting

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

LCA Results

Customer
Satisfaction

Info flow

9Driving Forces: Voluntary Measures• Annual disclosure of resource output efficiency and additional value from energy
saving in the environmental report

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

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Driving Forces: Voluntary Measures• Eco-efficiency analysis as a part of developing process of new eco products• LCA and Production Cost estimation are applied to the analysis.
Considerationof life cycle ofproducts

Environmental
Assessment/Cost
Analysis andQuantification

Raw Materials
Production•Natural resources

Product Production
Distribution•Materials
discharged into
air/water system•Wastes

Use
Recycling/Disposal

Evaluation of
Product’s
Competitiveness•Life cycle
assessment•Eco-efficiency
analysis•Eco-indicator•Life Cycle Costs

Environmental
Improvement ofProducts

Publicity of
Product
Environmental
Performance•Recycling rate

•Eco-label•Prohibition/Reduction of restrictedmaterials•Eco-declaration•Minimization ofenvironmental
impact•Environmental
declaration ofproducts•Environmental
restrictions

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

11Development and Diffusion of
Eco-efficiency Indicators and S/WProject Description

Title
Title

Development
DiffusionDevelopment&&Diffusion
of of
Eco-Efficiency
Indicators
S/W
Eco-Efficiency
Indicators
andandS/W

Period2004. 4 ~ 2007. (3-year project)

Researchers

Eco-Frontier & KonKuk University

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

13Expected Outcomes
Education forthe markets& consumers

Development ofEE methods andS/W

Support forquantitativeenvironmental
management

Ecoefficiency

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

Policy suggestion
to enhancesustainableproduction &consumption

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Project Stages
Development Status

1st Year

2nd Year

3rd Year•Wider application ofeco-efficiency•Provision of web service

Global Trend•Eco-efficiency case studies(Electronics industry)•Development of a web-based S/W

Development in Korea•Research of eco-efficiency methodologies•Development of S/W prototype

1990..

20042005

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

2006
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Major Tasks in 2nd Year
1

Development of ecoefficiency methods

Development of eco-efficiency measurement model which isapplicable to the electronics industry

2

Development of casestudiesDevelopment of eco-efficiency measurement cases in theelectronics industry (at corporate/product level)

3

Development of S/W

Development of web-based S/W to assist companies along
the way to establish its own eco-efficiency model

4

Dissemination of ecoefficiency concept

Training and education of corporate managers in electronicsindustry

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

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InStep EE: Toolbox Approach• Various types of eco-efficiency index
Process & Product

Site & Company

Cost

Value Added

Volume

Sales

E.I

E.I

E.I

E.I

Cost

Value Added

Net Income

Value Added

LCA(w)

LCA(w)E.I

E.I

Service ValueLCA(w)

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

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InStep EE: Toolbox Approach

Environment

Economy• Production• Resource• Sales• Chemicals• Gross Margin• Energy• Net Income• Water• EVA• GHGEE Index

Net IncomeChemicals㶝

㶝㶝㶝

㶝

㶝

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

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InStep EE: Toolbox Approach䀺 Input the economic data
䀻 Input the environmental data䀼 Select the items,
weights andmethod to evaluate

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

䀽 Show the resultof EE as a table,
a graph, etc

19Eco-Frontier• “Sustainability Solution Provider”!
• Eco-Frontier is a unique brain group on sustainability in Korea. Its solutions have been provided tocompanies, financial institutions, localities, government, and international institutions in various forms ofinvestment advice, information service, business development, brokerage, IT solutions as well as researchand consulting.

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

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Konkuk University
 General• Professor : Tak Hur• Previous Study¾ Life Cycle Assessment on Pb soldering and Pb-free soldering (from December 1st, 2002 toNovember 30th, 2005) funded by Ministry of Commerce, Industry and Energy¾ Development of Eco-design Guidelines for Electronics Product Systems (from June 21st,
2002 to May 31st, 2003) funded by Ministry of Environment• Address : Department ofMaterials Chemistry &Engineering Konkuk Univ., 1
Hwayang-dong, Kwangjin-Gu,Seoul, Korea (143-701)• Homepages
http://kkulca.net¾ Construction of LCI Databases for National Key Industries and Development of Environmental
Performance Indices (from October 1st, 2000 to September 30th, 2003) funded by Ministry ofCommerce, Industry and Energy¾ Well to Wheel Energy Efficiency and LCA on Hydrogen as An Energy Source for Fuel Cell(from December 1st, 2003 to February 28th, 2006) funded by Hyundai Motors¾ Guidelines for Establishing Supply Chain Environmental Management in Electronics Industry”(from October 1st, 2003 to September 30th, 2006) funded by Ministry of Commerce, Industryand Energy¾ Construction of Life Cycle Inventories and Comparison of Environmental Performances ofDifferent Wall Papers (PVC, Environmentally friendly PVC and Paper) by using LCA” (from July
1st, 2005 to February 28th, 2006) funded by Korea Petrochemical Industry Association¾ Development of Counter-Response Mechanism to International Environmental Regulations/Standards” (from July 1st, 2005 to June 30th, 2010) funded by Ministry of Commerce,
Industry and Energy (www.n-cer.com)
And so on.

Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

21Thank you!

Jeehye Park
Eco-Frontier
TEL: +82 2 963 1444(ext. 311), FAX: +82 2 963 1445
KAIST #7208, 207-43
Chungryangri, Dongdaemoon, Seoul, Korea, (130-722)
http://www.ecofrontier.co.kr
http://www.sustainability.co.kr
http://www.instepcenter.co.kr
Introduction to Korean Eco-efficiency Activities Eco-Frontier & Konkuk Univ.

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