The HandbookThe

eco-efficiency

andfactorconcepts were proposed about ten years ago, the study

and application for the definition and formulae of indicator and for the and other specific methods
has barely begun in Japan. These concepts are definitely at the early stage, when companies where
they have already been introduced are working to increase their staff,s awareness and encourage
their staff to apply them to their practical work experiences. But interest in the concept of eco-efficiency that aims to reduce the environmental impact and increase the value is growing steadily as aconcept essential for corporate management. This handbook responds to this growing interest by
introducing outlines of the significance of the eco-efficiency and factor concepts and of the benefits of their application by explaining practical application methods.

Who are the target readers of this handbook?
It is assumed to be primarily business sectors. It is sure to be of practical use when staff ofmanufacturing divisions (development and design divisions, quality control divisions etc.) and environment divisions in particular apply it to their work.

What are the target industries of this handbook?
The contents of the handbook are primarily concerned with electrical and electronic products,
but the methods it describes can be of use to other industries.

Please give us your comments
We wish to respond to the comments of anyone who is interested in this topic. We would liketo improve this handbook to distribute it more widely. Please send us your feedback and your questions regarding our activities on the eco-efficiency and factor concepts.
（Please direct them to the telephone and fax numbers and the E-mail address on the last page）

28

Contents
Chapter 1

What do we expect from eco-efficiency and factor? …………………………2

1.1 What is the target of eco-efficiency and factor application? ………………………………2･

Transformation of ideas-to find new wealth and value ………………………………………………2･

Mechanism to act promptly and to respond flexibly to change ………………………………………2

1.2 What is the meaningful efficiency to measure the environmental performance? …………3･

Familiar examples of efficiency ………………………………………………………………………3● ① Energy consumption efficiency of an air conditioner(COP) ………………………………………3● ② Energy consumption efficiency of a lighting fixture……………………………………………3● ③ Fuel consumption efficiency (fuel consumption) …………………………………………………3

1.3 Start to calculate eco-efficiency and their factor -in the case of refrigerators …………4･

Chapter 2

Formulas of eco-efficiency and factors ………………………………………………………………4

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do
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2.1 How to calculate eco -efficiency ……………………………………………………………………6･

Eco-efficiency numerator(product value) ……………………………………………………………6● Example 1 Integrating multiple functions by averaging the sum of squares …………………………6● Example 2 Multiplying product service life and product functions…………………………………7● Example 3 Weighting and totaling product functions ………………………………………………8･

Eco-efficiency denominator(environmental impact) …………………………………………………9● Example 1 Quantity of CO 2 emissions during the life cycle …………………………………………9● Example 2 Quantity of resources during the life cycle……………………………………………10● Example 3 Integrating multiple environmental impacts ……………………………………………11･

Integration of th denominator,numerator of eco-efficiency …………………………………………12･

Calculation of a factor ………………………………………………………………………………12

2.2 Presentaion of eco-efficiency and factors ………………………………………………………13
2.3 Steps to apply eco-efficiency and factors ………………………………………………………14･

Example of application of eco-efficiency and factors ………………………………………………14

2.4 Effective use of eco-efficiency and factors ……………………………………………………15
Chapter 3

Which direction should we take to implement eco-efficiency and factors? …17･

Conclusions …………………………………………………………………………………………17･

Reference documents ………………………………………………………………………………18

Appendixes …………………………………………………………………………………………19● Appendix 1 Model case eco-efficiency and factors ……………………………………………19● Appendix 2 FAQ about eco-efficiency and factors ……………………………………………23● Appendix 3 Overseas trends in eco-efficiency and factors ……………………………………24

1

Chapter 1

What do we expect from
eco-efficiency and factor?

1.1

What is the target of eco-efficiency andfactor application?

Transformation of ideas ― to find new wealth and value
In the twentieth century, technology advanced far more rapidly and economic activities expanded far more than everbefore, providing people with social lives that are extremely convenient and abundant. But the lifestyle we now enjoy
thanks to mass production, mass consumption, and mass disposal has placed a heavy impact on the environment, resulting in a variety of critically dangerous circumstances referred to collectively as global environmental problems, andincluding atmospheric pollution, water quality deterioration, waste problems, global warming, and harmful chemical substances. This trend intensified rapidly in the last half of the twentieth century, and it is now doubtful that, unless it isreversed, sustainable development of the economy and society can be guaranteed in the twenty-first century.
The German professor, Dr. Ernst-Ulrich von Weizsaker and et al have responded by proposing Factor Four as amethod of achieving abundance while considering the earth's limitations. Factor Four, a way of doubling wealth,halving
resource use in order to achieve sustainable development of the globe is a sharp departure from the twentieth-century
concept of reliance on mass production and mass consumption.
The factor concept originally had a global scale perspective, but it is a concept that can be applied effectively tonational level evaluations to achieve higher GDP (abundance and value) accompanied by a lower environmental impact(energy consumption for example), and also to corporate level evaluations to achieve higher sales and corporate profits(social benefit that is provided by the company)while creating a lower environmental impact (CO2 emissions for example). If this concept is further developed, it can be applied to products. This handbook is intended to be used as a guidebook to its application to products.

Mechanism to act promptly and to respond flexibly to change
The role of eco-efficiency and factors in helping transform ideas is the support and popularization of eco-productsthat encourage the creation of sustainable society.
The age when the goal was only lowering the environmental impact is over. In a business environment that demands
the pursuit of diverse wealth, corporations must constantly respond flexibly as they transform themselves so that they canalways anticipate and act promptly to react to change. Businesses must adopt new concepts and system creation so they
can revise their procedures without being bound by established ideas to meet the needs of a new age.Eco-efficiency andfactor are new ideas that can be applied effectively to achieve these goals.The use of these indicators enables us to measure progress in efforts to lower the environmental impact while increasing value. Two types of improvement ― lower
environmental impact and increased value ― will probably provide the motivation to develop products that provide
greater value and are kinder to the environment than earlier products. We are counting on the readers of this handbook to
fully understand its content and apply it in a positive manner to product development.

2

is the meaningful efficiency to
1.2 Whatmeasure the environmental performance?
Familiar examples of efficiency
Isn't eco-efficiency a concept similar to the idea of

efficiency

that is used in daily life?

Examples of efficiency that immediately come to mind are energy-consumption efficiency, electric power generation efficiency, fuel consumption efficiency (fuel consumption), investment efficiency, work efficiency, and so on. The
Iwanami Dictionary of the Japanese Language defines efficiency (Japanese word, koritsu) as, the ratio of the quantity ofwork performed by the effective operation of a machine and the total energy supplied to it. The following are a few
familiar examples.

① Energy consumption efficiency of an air conditioner (COP)1This is calculated by the following formula.
(Cooling or heating capacity [kW])/(Electric power consumption [kW])This measurement method is stipulated by JIS(Japanese Industrial Standards). The COP (=Coefficient of Performance)
listed in a catalog is data obtained by a measurement method stipulated under the Energy Conservation Law, and recently
products with a COP of 6.0 or more have appeared.

② Energy consumption efficiency of a lighting fixture1

It is represented by the following formula.
(Brightness of the light [lm (Lumen)]/(Electric power consumption [W])Lighting fixtures should provide adequate brightness using a small quantity of electric power. For example, because thebrightness of a 60W incandescent bulb can be obtained with a bulb type fluorescent lamp of about 15W, fluorescentlamps can be defined as energy-saving products③ Fuel consumption efficiency (fuel consumption)
The fuel consumption efficiency that is an important point when purchasing a car
is represented by the following formula.

(Distance driven [km])/(Quantity of fuel consumed [L])
Data measured by the 10･15 mode (a driving mode that simulates the average driving patterns in a city and on an
expressway, it is used for testing to confirm exhaust gas) is generally obtained.
In these ways, efficiency

can probably be defined as ratio of effective output to the input. Eco-efficiency too

can be understood as a type of efficiency if it is considered to represent the ratio of various values (=effective output) thatare obtained by a product to the equivalent value, input, that refers to the impact on the environment.
Efficiency includes cases where the numerator and denominator are the same type of yardstick as shown in ① andcases such as ② and ③ where they are not the same. When representing eco-efficiency, it is necessary to present not only
the numerical values, but to also show the units in order to avoid misunderstandings and confusion, because as shown by
the explanation of the method of defining indicators in the next chapter, generally the numerator and denominator are different yardstick.

1 Energy Conservation Capacity Catalog ― Summer 2003 by the Energy Conservation Center, Japan

3

Chapter 1

What do we expect from eco-efficiency and factor?

to calculate eco-efficiencies and their
1.3 Start
factor ― in the case of refrigerators
Formulas of eco-efficiency and factors
The

fuel consumption efficiency case described in the previous section can be defined as an efficiency that isincreased when a vehicle can drive further while consuming less fuel. The eco-efficiency concept is similar. In this chapter, the eco-efficiency of a refrigerator made ten years ago and that of a new refrigerator are calculated as an example. So
that this example is easier to understand, the environmental impact that is the denominator used is the electric power consumed during use that is the heaviest impact during a refrigirator's life cycle. The numerator is the capacity that isassumed to be the product value that is a user's top priority. High (eco-) efficiency is the ability to cool more goods withless electricity. It was not stipulated in advance just what kinds of data (calculation range for example) would be used todefine what kinds of environmental impact and product value. There are actually a variety of concepts.

● Example: Basic data for the calculation of eco-efficiency and its factor (refrigerators)
Refrigerator made 10 years ago
150

Capacity (L)Electric power consumption (kWh/year)

New refrigerator
300

1000

200

● Eco-efficiency of the refrigerator made 10 years ago
Capacity (numerator)

150 L
＝

＝

Electric power consumption (denominator)

Eco-efficiency 0.151000 kWh/year

The eco-efficiency obtained is 0.15 (unit omitted for simplicity) but, it is not clear how to asses its environmental
impact based only on this value. The eco-efficiency of the present refrigerator is calculated as follows● Eco-efficiency of the new refrigerator
Capacity

300 L
＝

＝

Electric power consumption

Eco-efficiency 1.5

200 kWh/year

The eco-efficiency of the new refrigerator obtained is 1.5. It is a value that is 10 times theeco-efficiency of the refrigerator made 10 years ago. Although its capacity is about twice as
great, technological progress achieved during the past 10 years has improved energy conservation
design, lowering its total electric power consumption to 1/5 of its former value.
Next, the ratio of the eco-efficiency of the 10-year old refrigerator to that of the new refrigerator is obtained.

● Factor
Eco-efficiency of the evaluated product (new)1.5＝

eco-efficiency of the yardstick product (10 years old)

4

＝
0.15

Factor of 10

This is a factor. It shows that its eco-efficiency is 10 times that of a refrigerator made 10 years ago. If no technologicalprogress had been achieved, in order to use a refrigerator with doubled capacity using 10 year old technology, it would probably consume almost 2,000kWh of electric power. When a producer wishes to increase refrigerator capacity (productfunction), but also wishes to lower electric power consumption (environmental impact), a factor allows such an ideal to bequantitatively expressed.
Eco-efficiency and factors can be improved by lowering the environmental impact and maximizing the productvalue. This means that it is a positive indicator that can be used not only to assess a product from the perspective of environmental impact reduction but also more progressively, assess the technological progress that improves its performance andother product values.
This concludes the explanation of the refrigerator example. Eco-efficiency and its factor can be generally represented
as follows2.

Products value
Eco-efficiency ＝Environmental impact

Eco-efficiency of the assessed product (new)Factor ＝
Eco-efficiency of the yardstick product (old)The following figure schematically explains operation of the eco-efficiency and factor approach by taking the refrigerator as an example.

10-years ago
Doubling therefrigerator
capacity

New

150L→300L

Factor 10

Annual electric power
consumption
reduced to 1/5

1,000kWh/year→200kWh/year

2 The numerator of the eco-efficiency is presented as product value, but product as used in this handbook, means products
and services. The same applies in rest of the handbook.

5

Chapter 2

How do we calculate eco-efficiency
and factors and present them ？

2.1 How to calculate eco-efficiency
The previous section explained the method of calculating eco-efficiency and a factor using refrigerators as an example, but in this section, the eco-efficiency and factor calculation methods are explained in general.

Eco-efficiency numerator (product value)
The product value, or in other words, product functions, performance, quality, service life, and so on are clarified. It
is also possible for the numerator to be quantified accounting for physical quantities, economic value, and so on (seeFigure 1), but in Japan it is often considered to be functions and performance. It is probably best to use those that havebeen disclosed to the public through product brochures or catalogs in order to guarantee transparency and reliability.

● Figure 1. Example of Product value (Numerator)
Item

Product examples

Examples of items applied

Physical quantities- (common)

Production volume (units, kg, tons, etc.)

Economic value- (common)

Amount of sales, profits or income (currency)

Functions andRefrigerators

Capacity, cooling speed, freezing speed

performance

Personal computers MPU processing capacity, hard disk capacity
Scanners

Optical performance, media processing performance, data processing performance

Washing machines

Washing capacity, product service life

Printers

Printing speed, image quality

Radiators

Ease of disassembly, product service life, number of parts

Cell phones

Calculation speed, memory, LCDsize, battery life

As shown by the above examples, a wide range of items are treated as values of a product (numerator). It is necessary to carefully study each case to decide which items to consider.
It is possible to integrate multiple items when converting them to numerical values to obtain an integrated representation. Below a number of examples of cases where integration was done in line with the concept of multiple values torepresent them as a single value are explained.
(Note: the following is only one example of the concept of numerator integration.)

Example 1. Integrating multiple functions by averaging the sum of squares
Averaging the sum of squares,, is used to integrate multiple performances.

The average of the sum of squares is obtained and returned based on the average of the squares[Example of an indicator from Fujitsu]

6

● Figure 2. Data to Calculate the Product Value [numerator: function] (Scanner)

Comparison of new and oldfunctions/performance(b)/(a)Unit

Old (a)fi-4110C

New (b)fi-4120C

Basic resolution

dpi

300

600

2.00X

Reading speed(Color, both sides)

ipm

5

25

5.00X

Media
processing
performance

Max. document sizemm

210 × 297

210 × 297

1.00X

Document thickness

kg/ream45-90

45-1101.44X

Data
processing
performancecreen processing/
contraction function(Yardstick equipment)

Programnumbers(pre-installed)

4

6

1.50X

Functions/performance

Opticalperformance3

3.808X

1.240X
1.500X[Definition and calculation of the numerator]

Optical performance
Integration of product value (numerator)
Media processing
performance

Data processing
performance

The numerator is calculated by applying numeric aspects from major
functions of scanner.The ratio of new/old products is represented by averaging
the sum of squares.Thus,the improvement of each function can be expressed.
In order to obtain total value,multiple functions are integrated and averaged again.

Example 2. Multiplying product service life and product functions● Figure 3. Data to Calculate the Product Value [numerator: function] (Washer)
New productProduct service life
Product functions (washing capacity)

Old product10 years

10 years

8 kg

6 kg

[Sample indicator from Matsushita Electric Industrial Co., Ltd. and Hitachi Corp.][Definition and calculation of the numerator]
Product value (numerator) = product service life × product functions
numerator of new product = 10 × 8 =80
numerator of old product = 10 × 6 =60

3 In this example, the factor was not calculated by obtaining the eco-efficiency of a yardstick product and an evaluated product;
the degree of improvement of the product value (nominator) of the yardstick product and of the evaluation product were
calculated in advance as a comparison of the old and new products.

7

Chapter 2

How do we calculate eco-efficiency and factors and present them?

Example 3. Weighting and totaling product functions(1) Setting the product functions(2) Calculating coefficients according to degree of customer satisfaction (examples frequency of use, average unit
price, etc.)(3) Calculating the functions (capacity of the functions) according to absolute values(4) Making the performance of the old and new product dimensionless with the performance of the yardstick product as
the yardstick. (adding the unit)(5) Adding by multiplying the coefficients.

● Figure 4. Data to Calculate the Product Value [numerator: function] (IH cooking heater4)
Functions Coefficient

Product in 2002 (new product)

Function
Performance
Coefficient
provided/not
Dimensionless(W)additionprovided

Product in 1995 (old product)

Coefficient
addition

Function
Coefficient
Performance
Dimensionlessprovided/not
addition(W)
provided

Right IH
heate

1,825

1

2,000

1.00

1,825

1

2,000

1.00

1,825

Left IH heater

1,825

1

3,000

1.50

2,738

1

2,000

1.00

1,825

Radiant
heater5

209

1

0.36

1.00

209

1

0.36

1.00

209

Roaster

150

1

0.20

1.00

150

1

0.20

1.00

150

Total productfunctions

4,922

With/without function is represented as 1 or 0

4,009
Performance in 2002/performance in 1995
=3000/2000 ＝ 1.5● Figure 5. Concept of Coefficient (Frequency of Use)
Functions

FormulaFrequency of use

Coefficient

Right IH heater

5 times/day × 356 days × 10 years

18,2501,825Left IH heater

5 times/day × 356 days × 10 years

18,250

1,825

Radiant heater

209 times/year × 10 years

2,090

209

Roaster

150 times/year × 10 years

1,500

150

[Definition and calculation of the numerator]
Product value (nominator) [heating capacity = right IH heater + left IH heater + radiant heater + roaster]Nominator of new product = (1,825 × 1.0)+(1,825 × 1.5)+(209 × 1.0)+(150 × 1.0)=4,922
Nominator of old product = (1,825 × 1.0)+(1,825 × 1.0)+(209 × 1.0)+(150 × 1.0)=4,009[Sample indicator from Matsushita Electric Industrial Co., Ltd.]

4 IH (Induction Heating) cooking heater = hot plate used in kitchens
5 A radiant heater refers to a heater for an aluminum pot, copper pot, or small pot not equipped with an IH heater8

Eco-efficiency denominator (environmental impact)
It is clarified based on the environmental impact. This impact includes global warming, resource use (electric power,
water consumption, iron ore consumption, etc.), and the effects of the use of harmful substances (lead, toluene, mercury,etc.). Also the overall life cycle of his product should be clarified.Refer to the following environmental impact items andcalculation example Note) The following is just an example.
● Figure 6. Example of Environmental impact (Denominator)
Major items

Items

Examples of items

Unit

Energy consumption

Energy consumption (electric power, fossil fuels, etc.)

W, kg

Resource consumption

Materials(raw materials, solvents,
intermediate products, etc.),water,etc.

kg,m3Natural resources
consumption

Water

m3

Chemicals

Lead, toluene, mercury, etc.

kg, gQuantity of outputs

Quantity of output of substances harmful tothe ozone layer

Converted to kg
of CFC

Quantity of output of greenhouse gasses

Converted to kg of CO2

Acidification coefficient

Converted to kg of SO2

Waste material

kg

Input

OutputExample 1. Quantity of CO2 emissions during the life cycle● Figure 7. Data used to calculate the [Environmental impact (denominator)] (Scanner)
CO2 emission quantity comparison

The quantity of CO2 emissions through the life cycle

50of the product is used as the environmental impact.
CO2 emission quantity(kg-CO2/unit)

fi-4110C (Old)・Manufacturing: final assembly site

40

・Distribution: from final assembly site to user

fi-4120C (New)・Use: hypothesized as in use 2 hours/day and stand-30

by for 6 hours/day for 240 days/year for 5 years.
20＊Disposal and recycling are not considered by thecalculation, because it is assumed that there is little

100

difference between the old and new product.
[Example of indicator from Fujitsu]
Materials Parts Manufacturing

Distribution

Use

Life stages[Definition and calculation of the denominator]
Environmental impact (denominator) = total CO2 emissions during the life cycle (kg-CO2/unit)= materials ・ parts + manufacturing + distribution + use (kg-CO2/unit)
Denominator of new product (fi-4120C) = 23.02+1.1+7.21+45.2=76.53 (kg-CO2/unit)
Denominator of old product (fi-4110C) = 20.34+1.1+3.3+41.4=66.14 (kg-CO2/unit)

9Chapter 2

How do we calculate eco-efficiency and factors and present them?

Example 2. Quantity of resources during the life cycle
Quantity of resources not recycled is used as the environmental impact .
● Figure 8. Data Used to Calculate the Environmental impact (Denominator) (TV)250
3R capable resources
200
3R
150

Resources disposed of100

Newly used resources

50
0

2000

1993

(year)

Resources[Definition and calculation of the denominator]
Environmental impact (denominator) = Resources that do not circulate over the entire life cycle* Resources not circulared= Newly used resources +Resources disposed of= Used resources-reused or recycled resources + Used resources-reusable orrecyclable resources

Denominator of new product (2000 product): (87.77-9.10)+(87.77-72.24) = 78.68+15.54 = 94.22 (kg)
Denominator of old product (1993 product): (100.10-10.48)+(100.10-8.28) = 89.63+91.82 =181.45 (kg)[Example of an indicator from Matsushita Electric Industrial Co., Ltd.]
Points to note in product development

If this indicator is used, 3R (reduce (resource conservation,

Circulate resources.
Reduce resource use and increase the amount of resources to be reused or recycled.

long use), reuse, and recycle) can be assessed.
Products in a recycling-oriented society should be used

Requiresa large amountof new resources.

Product lifecycle
Disposes of a large
amount of theresources.

as resources to the greatest possible degree. At the same
Small amountof resources
is recycled.

time as quantity of resources newly input as raw materials
etc. should be reduced, the quantity of resources discarded
should also be reduced.
In this example, if both are not reduced, the environmental

From now on

impact is not minimized.
[Image and indicator from Matsushita Electric IndustrialCo., Ltd.]

Minimizes the useof new resources.
Minimum
resources

Product lifecycle
Minimum
disposal

Minimizes the resources
to be disposed of.
Aim:reduce the amount to below the self-purification capacity.

10

Maximizethe use ofrecycledresources.

Example 3. Integrating multiple environmental impacts
Because a method of integrating environmental impacts as a single indicator has not been established, they may be represented separately for multiple environmental impacts (global warming, resource consumption, etc.). Or integrating data sothat the persons viewing the information will find it easy to understand as shown in the following example (Figure 9) is also
considered.
(Example) Case where the environmental impacts of a comparison product are calculated and integrated as the sum of theirvectors when the denominator (environmental impact) consists of three factors, global warming (energy consumption), resource
consumption, and specified chemical substances, these are integrated and the result treated as a single environmental
impacts, and each of the environmental impacts of the yardstick product are considered to be 1:● Figure 9. Data to Calculate Environmental impacts (denominator) (cell phone)1991 year model (yardstick
product)
2002 year model(Evaluation product)
Details of the
improvements

M:Effective use ofresources

E:Efficient use of energy

T:Reduce use of substances potentially harmful
to the environment

1

1

1

0.42

0.24

0.82

Reduction of of virginresources 58%
Reduction In non-recyclable
resources 60%

Electricity consumption
Reduction at time of
regular use 66%
Reduction at standby
time 96%[Definition and calculation of the denominator]
Environmental impact

Reduction in lead of solder
18%● Figure 10. Schematic of Integration ofEnvironmental impact
Environmental impact of
the evaluation product(denominator)(A)

Denominator of the yardstick
product(B)

Denominator of the evaluation
product
Environmental impact of
the yardstick product[Example of indicator from Mitsubishi Electric Corporation]

In the above example (Fig. 10), the environmental impact is represented by three-dimensional space in MET. The
environmental impact of the yardstick product is clarified as the length of the diagonal line of the cube (A), and the environmental impact of the evaluation product is clarified as the length of the diagonal line of the rectangular parallelepiped(B). And the direction of the diagonal lines can be viewed as the environmental impact with the greater impact, so that thedegree of the improvement of the environmental impact can be understood at a glance. But if well balanced reduction is
not done, one side will lengthen so that the value representing the environmental impact (length of the vector) will not be
small. This method provides a way of representing integration, by for example, clarifying the total environmental impact
even when one of the MET has become zero.

11

Chapter 2

How do we calculate eco-efficiency and factors and present them?

Integration of the denominator,numerator of eco-efficiency
As already stated, there are various methods of calculating eco-efficiency and its factor. It is necessary to note thateach method has its merits and demerits. The methods should be combined considering the elements of the product value,
characteristics of the environmental aspect that is selected as the indicator, and the purpose of its use.

● Figure 11. Advantages and Disadvantages of Integrating and Unifying the Factors and Using
Them Separately (as Multiples)
Advantages

Disadvantages

Single factor that has
been integrated

・It is easy for non-experts (parties using the information) to instantly understand the overall degreeof improvement

・Is the integration method fully
appropriate?
・It is difficult to let people
understand the conceptof the integration.

Separate(multiple)
factors

・ It is easy for a corporation (party disclosing theinformation) to create
・ It is easy for non-experts (parties using theinformation) to separately understand the degreeof improvement of each environmental impact

・It is impossible to understandthe total degree of improvement.
・If only one factor has sharply
improved,it would be necessary
to check each,item to specity
the most inflnential one

Representing multiple evaluation items by a single indicator has the merit that it is easily understood, but it also hasa demerit; concentrating multiple items make it difficult to understand individual environmental problems and inducting
factors. And it is predicted that if a weighting coefficient is used during the integration process, coordination between
concerned parties necessary to set the common rules is difficult.

Calculation of factor
Above, the ratio of the eco-efficiency of a yardstick product and that of an evaluation product was treated as the factor. In the above examples, the eco-efficiency of a past product (yardstick product) and a present product (evaluation
product) were compared. It is probably also possible to set a factor that should be the target by comparing the present
eco-efficiency and the eco-efficiency that should be achieved in the future.

Environmental impact reduction?
Improvement of value? Both?

12

2.2 Presentation of eco-efficiency and facotrs
It is necessary to correctly explain what eco-efficiency and the indicator of a factor mean and the purpose of introducing the concepts and indicator, to gain understanding and thereby, increase the value of eco-efficiency and factors as
tools in the market. It is necessary to avoid misunderstanding by, for example, explaining that the formulae were not created by defining them in a way that benefits corporations in particular. The following are basic precautions to be followed
when using eco-efficiency and a factor to disclose information to the public. Refer to these when examining eco-efficiency or factors and when explaining them to people in other departments of your company and in other companies(1) Clarify definition of eco-efficiency and disclose
The definition of eco-efficiency should probably be clarified by presenting a specific indicator and formulae concerning the denominator of eco-efficiency (environmental impact) and the numerator (product value).

(2) Select items of eco-efficiency to guarantee transparency and reliability
The value can fluctuate according to the indicator selected as the numerator of eco-efficiency (product value).
Consequently, transparency or reliability should be obtained by, for example, using those disclosed in product brochures
or catalogs.

(3) Clarify the definition of a factor
A factor reveals the degree of improvement of the eco-efficiency between an old and a new product to clarify theireco-efficiency relationship. Because a method of integrating multiple environmental impact with differing dimensions
with a single indicator has not been established, there are cases where a factor is defined for each environmental impact.
In such cases, it should be clarified which aspects of environmental impact each factor represents.

(4) Clarify the baseline year or the product model name that is theyardstick when disclosing a factor
When disclosing a factor, the yardstick year or the product model name that is the yardstick is clarified. At this time,
it is a common concept that a factor is treated as a relative indicator that represents the degree of improvement of a new
product over an old product made by the same company, but because their definitions, the yardstick products, and formulae differ between companies, it is impossible to compare them. It should be clarified that it is a comparison between
internal products.

(5) Clarify the definition of a factor that discloses eco-efficiency
calculation data for both the numerator and denominator
When factors are disclosed, the values of the numerator/denominator are represented at the same time. It is not correct to disclose only the value of a factor. It is necessary so that, for example, two questions can be answered. Was thefactor raised by improving the environmental impact (denominator) or was the factor raised by increasing the productvalue (numerator)?

13

Chapter 2

How do we calculate eco-efficiency and factors and present them?

2.3 Steps to apply eco-efficiency and factors
Example of application of eco-efficiency and factors
It can be stated that the most important reason for calculating eco-efficiency and factors is to obtain quantitative
indicator in order to develop products with higher product value while producing less environmental impact. It is important to perform continuous evaluations based on eco-efficiency and factors to improve them. The following example of an
application method is based on this fact (Fig. 12).

(1) First the products whose eco-efficiency● Figure 12. Eco-efficiency and Factors: Purposes andand factor are evaluated are selected.

Preparation of eco-efficiency andits application steps(2) What is the purpose of evaluating thisproduct? Compliance with laws and regula-(1) Selecting the product to be evaluatedtions, demands by concerned parties etc. andother elements are considered. It is more

(2) Clarifying the evaluation purpose and goals
Example Target control inside a company
Decisionmaking standards for coordin ating internaland external relations and explanatory
Communication tool (for stakeholders)etc.

effective to set specific numerical targets
that should be achieved.
(3) After the evaluation items are determined, the evaluation methods are specified.
a) Which items appropriately represent necessary information? Measurement items suitable as indicator are selected, For example, it

Evaluation
Action planfor further
improvement

is necessary to decide if the quantity of production, value of production, quantity ofsales, or value of sales and other items(3) Study of evaluation methodsa) Selection of items to be measured
What is the suitable environmental load of thedenominator?
b) Selection of he calculation range
Does it include the manufacturing stage andthe consumption stage?
c) Standard year for the comparison
Is 1 year ago,3 years ago,or 10 years ago
suitable?
d) Confirming the formula
Is it integrated when there are multiple
objects of the evaluation?

appropriately represent necessary information. As the environmental impact, the mostappropriate item, electrical power or quantity(4) Measurement and data collection
Continued
evaluation(5) Calculation of eco efficiency and factorof energy used for example, is selected.
b) A study is done to determine, according
to the purpose, if the calculation range
should be only the production stage or if it should be the life cycle. It is also necessary to decide whether or not to deduct
the recycling portion.
c) It is decided what year to set as the yardstick year for the calculation of the indicator. Because the priority of the stipulated yardsticks differs according to the period, it is necessary to consider the number of years in the past to be the basis
for evaluating improvement by, for example, taking care that it is not impacted by laws, regulations, and other outside
concerns.
d) In a case where formulae are integrated or weighted, it is necessary to clarify the setting method so that it is not done
arbitrarily.
(4) (5) After the evaluation method has been established, the actual measurement and calculation is done. Continuously
clarifying and evaluating the state of improvement in this way reveals the location of the causes of impacts so they can beeasily dealt with to set targets for further improvement.

142.4 Effective use of eco-efficiency and factors(1) Incentives for design technologists
Eco-efficiency indicator, or factors, are compared with LCA, but LCA is a method of quantitatively clarifying environmental impacts, and the calculation result of LCA should be as small as possible. On the other hand, an eco-efficiency
indicator, or factor, not only clarifies the lower limit of environmental impacts, but also shows the degree of improvementof product value and degree of improvement of quality. A factor differs from LCA in that it should be as high as possible. It can also be stated that eco-efficiency and factor evaluate the skills of product technologists from multiple perspectives. Therefore, it is anindicator with bright future orientation, and is counted on to provide incentives to technolo-

gists.

(2) Driving force behind the creation of eco-products
The eco-efficiency indicator, or factors, are starting to attract interest both inside and outside of Japan as indicatorthat can make an effective contribution to the creation of a sustainable society. The use of these methods can become thedriving force behind the creation of genuine eco-products. Corporations have begun to devise ways to effectively use factors, by for example, adding the degree of improvement of a factor indicator to product assessment evaluation items, constructing an LCA implementation data base (calculating factors based on LCA implementation data) or using them as
action target values in corporate voluntary plans. If the degree of performance improvement and degree of improvementof environmental impact can be quantified, it will be possible to use them as targets that should be achieved in the future.
The eco-efficiency value of products, or factors will be improved annually, and this is clearly what is called Sustainableimprovementin ISO14001.

(3) Communication tool for responding to customers' requests forenvironmental information about products
Customers request the disclosure of environmental information concerning products. These demands for the information access can be satisfied by using factors as one kind of environmental label. In fact, there are many issues to beresolved to use factors as a communication tool.
It would be necessary to fully explain a number of facts: a factor is a value calculated based on a company's in-house
yardstick to compare its new and old products; in order to release the values of the environmental indicator, factors, it isnecessary to be willing to completely reveal the prerequisite conditions, models compared, formulae, indicator, and theweighting and integration methods in order to disclose eco-efficiency indicator that are numerical factors; and finally,
they are values calculated by comparing a company's new and old products but not a comparison with another company's
products. It would, therefore, be necessary to educate recipients of this information so that people who examine the values (customers) will understand that eco-efficiency and factors have the above characteristics.

15

● Figure 13.1 Examples of Eco-efficiency and Factor PR (Covers of explanatory pamphlets)● Figure 13-2. Examples of Eco-efficiency and Factor PR(Left : small ad in the Nikkei Sangyo Shimbun.
December 2000 right : Special Environmental Issueof Fobes. August 2002)● Figure 13-3: Example of Eco efficiency and Factor PR(product brochure)16Chapter 3
Which direction should we take toimplement eco-efficiency and factors?
Conclusions
Recent years have seen a conspicuous trend to use indicator to quantitatively evaluate progress in environmental
management. Although trial and error is still a major feature of this process, an increasingly large number of companies
are interested in indicator as common evaluation yardsticks for environmental sectors, technology developers, administrators, and other concerned parties. And the trend to this use of indicator is not limited to internal management. Indicators
are used to rapidly and effectively inform outside organizations of the superiority of the results of environmental impact
reduction, and interest in the use of eco-efficiency as a method is growing.
As already stated, there is no uniform eco-efficiency and factor calculation method. It is at the stage where the race
has just begun according to the basic concept of reducing environmental impactand increasing value. In order to develop
and apply methods of quantitatively evaluating both the denominator and numerator, many problems have to be resolved
and an open debate should be carried to establish these as common indicator.
There are various product conditions including products that are expected to rise in value rather than to reduce environmental impact, and others whose environmental impact should be reduced while maintaining a constant value. Setting
calculation rules for the environmental impact (denominator) and product value (numerator) for each group of products
is, therefore, a shortcut to mutual understanding. Many items and calculation methods concerning eco-efficiency and factors are being tried out, and the direction has been becoming clearer. Attention often focuses only on differences between
calculation methods, but at corporations that have aggressively undertaken this task, they have become an important
foundation for determining the orientation of indicator.
There are still many unresolved challenges concerning eco-efficiency and factors, but it is important to begin. These
challenges will not be overcome quickly. When Japan that specializes in the creation of new products has constructedindicator guided by consciousness of both reducing environmental impact and increasing value, it will obtain both products and a powerful tool for disseminating information around the world. One of the most effective way to actually construct and implement tools called indicator is for all concerned parties to participate actively in their creation.
We hope that this will be a valuable reference for corporations developing products that benefit the environment byintroducing indicator in order to achieve abundance unlike that possible in the past17

Reference documents

Refer to the following documents to learn more about eco-efficiency and factors.
(１) Report on a survey of the promotion of the introduction of environmental harmony type product activities (ecoefficiency) contracted by the Ministry of Economy, Trade, and Industry in 2002
(２) Report on a survey of the promotion of the introduction of environmental harmony type product activities (ecoefficiency) contracted by the Ministry of Economy, Trade, and Industry in 2001
(３) World Business Council for Sustainable Development: Measuring eco-efficiency as a guide to reporting company performance.
(４) Schmidt-Bleek, translator Sasaki Ken et al.: Factor X, Springer - Verlag Tokyo,(５) Yamamoto Ryoichi: Eco-design best practice 100, Daimond-sha(６) Pamphlet, National/Panasonic: Factor X, yardstick for products that achieve new abundance(７) Pamphlet, Product eco-efficiency at Hitachi (Factor X)(８) Mitsubishi Electric Group: Report on the environment and society, 2003
(９) Mitsubishi Electric Group: Report on the environment, 2002(10) Mitsubishi Giho, May 2003, Vol. 77 No. 5(11) Report on environmental management by the Matsushita Electrical Industrial Group, 2003
(12) Report on environmental management by the Fujitsu Group 2003
(13) Report on environmental management by the Hitachi Corp. 2003

Eco-efficiency and factors are the themes of an
exhibit at Lake Biwa Environmental Business Messe
2003 held in November 2003.
http://www.biwako-messe.com/topics/01.htm

Japan Forum on Eco-Efficiency(JFEE)
Leading companies in Japan and JEMAI have established the Japan Forum on EcoEfficiency(JFEE)in October, 2004.
About 100 companies and research institutes,which are interested in EcoEfficiency,are participating to this forum now.
http://www.jemai.or.jp/english/ecobiz/forum.cfm

18Appendixes

Appendix

1 Model case eco-efficiency and factors

Examples of the disclosure of actual eco-efficiency and factors are shown below. Only part of the disclosure process
is described.

Mitsubishi Electric Corporation

Basic Factor Computaion df Mitsubishi Electric Group●Computaion is made with standard product(fundamentally manfactured by company in 1990)●Product performance improvements are taken into
account＊1●Based on MET environmental improvement concepts(effective use of resources＊2,efficient use ofenergy, and reduce use of substances
potentially harmful to the environment)synthesized
into a vector length.

Product Eco-efficency＝Product Perfomance/Negative environmental impact
Factor ＝Eco-efficency of present product/
Eco-efficency of standard product＊1 If the degree improvement in product perfomance cannot be reduce
numerically,the value givenis is 1
＊2 Index for effective use of resources＝Virgin resource volume ＋weght of non-recycable resources(volume
disposed of being recycled)＝(product weight―weight of recycable materials and parts)＋(Productweight―Weight of recyclable resource)

Case of Indication of Definitions
Definitions and basic concepts of eco-efficiency and factor

Example Cell-phone: Factor 1.82

Yardstickproduct

Analog Mova D

Evaluation
product

Mova D 251i

Effective
resource
utilization

Effective energy
use

Environmentally
harmfulsubstance content

1991 model

2002 model

Improvements

Reduction of virginresources 58%
Reduction In non-recyclable
resources 60%

Electricity consumption
Reduction at time of
regular use 66%
Reduction at standby
time 96%

Reduction in lead solder
18%(Environmental impact of yardstick product)(Environmental impact of evaluation product)

Environmental load ofthe evaluation product

Factors ＝ Eco-efficiency of evaluation product/
Eco-efficiency of yardstick productEnvironmental impact of the yardstick productDisclosure of calculated data
(numerator/denominator) and formulaEco-efficiency of yardstick product (A) = 1/0.950
Eco-efficiency of evaluation product (B) = 1/1.73
Factor = (B)/(A) = 1.82

Indicating the ground for the calculation
Items used to calculate the environmental impact(denominator): energy, resources, environmentally
harmful substances(Source: Mitsubishi Electric Group: Environmental Sustainability Report p. 18, 2003)
For details concerning this example, see: http://global.mitsubishielectric.com/company/eco/index.htm

19Appendixes

Fujitsu Ltd.
Factor values were calculated by comparing the eco-efficiency of the notebook size personal computer FMV5120NA/X first sold in 1996 with the FMV-718NU4/B, a product awarded the Ecoleaf Environmental Label when it
went on sale in 2003. The results achieved Factor 23 (converted to global warming impact) over 7 years.

25

23

20

Case where the yard-

Factor = 19/0.84 = 23X

19

stick year, productEnvironmental impact

15

model, etc.

reduction of 16%

are clearly indicated105Disclosure of calculated data
0.84

0(numerator/denominator) and formula
Improvement of product value (numerator) (A) = 19/1

FMV-5120NA/X

Improvement of environmental impact (denominator) (A) = 0.84/1

FMV-718NU4/B

Factor = (A)/(B) = 23

[Quantification of service]
The following formula was used to quantify service. The calculation was done by averaging the sum of the squares
to summarize the various services: CPU, memory, and HDD.
26

Averaging sum of squares

Changes when 1996 equals 1

Facotrial

21

Functions/ Unit
performance

FMV-5120
NA/X（a）

FMV-718
S=(b)/(a)NU4/B（b）

CPU

GHz

0.12

1.8

15.0

Memory

MB

8

128

16.0

HDD

GB

0.81

20

24.7

CPU
Memory
HDD

16
11
6
1
1996

19.1X

Spring 2003

Indicating grounds for the calculation
Product value (numerator): integrated
CPU, memory, and HDD
Environmental impact (denominator):
global warming impact[Calculating the environmental load]
The environmental load was calculated based on the notebook

size personal computer product classification yardstick (PSC) in the Ecoleaf Environmental Label program.
Machine name100％

Old product New Product

Global warming impact

Global warming impact(converted to kg of CO2)
Acidification impact(converted to kg of SO2)
Energy resources(converted to kg of crude oil)

164

138

Reduction

90％

0.286

0.217 Reduction

80％

61.7

52.2

Reduction

70％

Mineral resources(converted to kg of iron ore)

136

89.8

Reduction

60％

Acidification impact
Energy resources
Mineral resources

FMV-5120NA/X

FMV-718NU4/B

The old product (FMV5120NA/X) was considered under the Ecoleaf Environmental Label Program based on the following
hypotheses.
The old product (FMV5120NA/X)was considered under the Ecoleaf Environmental Label Program based on the following
hypotheses.
・Concerning the manufacturing site, it was assumed that the 10.4 inch flat panels were made at the present FDTC Yonago, andthe main board was mounted and assembled by Shimane Fujitsu.
・ It was assumed that it was distributed using the same impacting method and impacting rate as now.
・ It was assumed that when it is used, the time when it is suspended state is lower power time.

20

For other cases and details see the following two home pages
http://eco.fujitsu.com/jp/info/downloads/Eco/rep2003/report19̲23.pdf
http://journal.fujitsu.com/267/greenlife/

Matsushita Electric Industrial Co., Ltd.

Improving the quality of life
New Prosperity

Minimizing environmental impact

New Prosperity indicators: Environmental Efficiency and Factor X

Example ofindication ofdefinition

Matsushita has defined two New Prosperity indicators: environmental efficiency andFactor X.
These indicators assess products and services over their entire life cycles.
They represent our corporate vision and one of our basic policies for productdevelopment.
At the same time, they serve as a set of uniform indices to help people around theworld choose products and services.

Factor X ＝ Environmental efficiency improvement factor＝Definitions andbasic concepts of
eco-efficiency andfactorImprovement in quality of life
Reduction on environmental impact

Quality of life is a measure for assessing product longevity and product function. Environmental impact measures effects
in terms of global warming, resources, and chemical substances. Together these define environmental efficiency

Globalwarming

Product life × Product function

GHG* efficiency

GHG emissions over the entire life cycle
Product life × Product function

Resources Resource efficiency

Non-circulating resources over the entire life cycle(Non-circulating resources : Resources newly extracted from the earth + Resources disposed of)Chemical
substances

Non-use of hazardous chemicals(Lead, cadmium, mercury, hexavalent chromium specified brominated flame retardants, and PVC resin)* GHG: greenhouse gas

The non-fluorocarbon refrigerator
GHG Factor:

5.2

Resource factor 1.0

1.0

Resources not recycled (compared with ref product)

Greenhouse gas emissions(compared with ref product)

Disposl/Recycling
In use (electricity)

Factor
5.2

Factor 1.0

Manufacturing ofparts/materials,etc

Calculation data (numerator/denominator)

Calculation data (numerator/denominator)

Eco-efficiency of yardstick product (A) = 1/100

Eco-efficiency of yardstick product (A) = 1/1

Eco-efficiency of evaluation product (B) = 1/19

Eco-efficiency of evaluation product (B) = 1/1

Global warming prevention factor = (B)/(A) = 5.2

Resource factor = (B)/(A) = 1.0

At the Matsushita Electric Group Factor X (eco-efficiency) was introduced as the authorizedyardstick for Green Products (low environmental impact products) in 2002. Inside the company,
the development of Green Products has been accelerated by applying the yardstick to evaluationsof performance, while outside the company, Green Products have been promoted with the Type II
Environmental Label (p16,13-3) application yardstick.
http://matsushita.co.jp/eco/en/factor̲x/21

Appendixes

Hitachi Ltd.
Lets look at a Factor X calculation example actually applied to washing machines.

Washing Machine
Outline of the products compared
Item
Product
Year manufactured
Model No.
Product service life *6 (designated usage
time (years))
Washing capacity(kg)
Product functions
Cleaning power *7
Washing conditions
Product weight(kg)
Electric power consumption *9(W)
Quantity of electric power consumed *10(W-h)
Yardstick quantity of water used (liters)

Yardstick
1990
KW-B438

Evaluation
2002
NW8BX

＊ 6. Product service life is stipulated under Notification No. 230 ofApril 1974 of the Director of the Machinery and Information
Industries Bureau of the Ministry of International Trade and Industry,
ﾒ Revision to the Minimum Retention Time for Repair Use
Performance Parts for Household Electronic Appliances.

6
4.5

8.0

0.83
0.9
Yardstick course *8
34.0
41.0
310
125

54

197

125/32(inserted)

Example of the clarification of the yardstick year andproduct model etc.

＊ 7. Cleaning power is set by the cleaning performance test stipulated by JIS C 9811-1999 Methods of measuring performance ofhousehold use electrical washing machines. Stipulated soiled cloths
are washed under the stipulated test conditions, and the degree ofthe cleanliness of the soiled cloths is measured by their reflectivity.
The degree of cleanliness of the specimen washing machine is compared with that of a stipulated yardstick washing machine, to set thecleaning performance as the cleanliness ratio that was obtained.
＊ 8 The yardstick course is a course that satisfies a degree of cleanliness ratio of 0.8 or more, and it is stipulated in JIS C9606.
＊ 9, 10, Electrical power consumption and quantity of electric power
consumed are values measured when the machine has been operated continuously at the rated voltage of the rated frequency and thetwo values are almost equal (JIS C 9606-1993 Electrical washingmachine)＊ 11. the total emission of global warming gasses is based on the
Hitachi LCA (Hi-PLCA ver. 3).

Results of the evaluation of the global warming prevention factor◆ Results of calculation of total emission of global warming gasses *11
Unit: (kg/unit)
Product
Yardstick Evaluation
Year ofmanufacture
Model name
Materials manufactured
Manufactured
Transportation
Utilization (Electricity, water)
Recovered/recycled
Total life cycle

Life cycle stage
Made
Transported
Used
Returned
Total

1990

2002

KW-B483
52
4
4
175
11
246

NW-8BX
76
4
6
68
16
169

◆ Content of calculation of global warming prevention
Product service life (designated usage time (years))
Washing capacity (kg)
ProductfunctionsCleaning power
Emissions of global warming gasses throughout its life
cycle per unit washing capacity (kg/kg)
Global warming prevention rate
Global warming prevention factor

・Increase in materials to increase the washercapacity (4.5 to 8 kg)
・Reduction in operating electric power byadopting PAM control and DD camera
method(125 to 54 W･h)

PP base

4.5.
0.83

8.0
0.9

54.7

21.1

・Increased capacity of the washing machine

0.41

2.05
5.0

・ Increase in cleaning performance

Evaluation model
NW-8BX

Calculated data (numerator/denominator
Eco-efficiency of yardstick product (A) =6 × 4.5 × 0.83/54.7
Eco-efficiency of evaluation product (B) =6 × 8.0 × 0.9/21.1

22

ty of all calculated items are assured.

・Use of recycled plastic for the outer tank and6

Yardstick model
NW-B483

Factor = (B)/(A) = 5.0

・Example where th transparency and reliabili-

Indication of grounds for calculation
Environmental impact (denominator) calculation
items: quantity of global warming gasses emitted
Product value (numerator): product service life X
product functions

Source: Hitachi Corporation ﾕ s Product Eco-efficiency (Factor X) pamphlet, p. 4, May 2003)
For details see the home page http://greenweb.hitachi.co.jp/pdf/kouritsu.pdf

Appendix

2 FAQ about eco-efficiency and factors

we compare the factors for products manufactured
Q Can
by different companies?

A No, you cannot compare them.
A

B

Because the definition of eco-efficiency and factors, baseline for products, and formulae all differ between companies, they are not intended for comparisons of products made by different companies. Factors are commonly treated as
relative indicator that indicators the degree of improvement of new products over old products from the same company. It
is necessary that they be used only to compare new and old products. In order to prevent causing misunderstandings
when disclosing information about eco-efficiency and factors, it is important that the numeric values are transparent, or inother words, that the form of the numerator/denominator is disclosed numerically at the same time. ⇒ See Page 13 (4) of
this handbook.

the environmental impact of eco-efficiency makeQ Does
LCA mandatory?

A LCA are preferable, but they do not have to be LCA.
The ultimate purpose of a factor is to improve numerical values. It is a concept of improving values, or in otherwords, environmental impacts, by continuous improvements based on reassessing product development and manufacturing flow. Attempting improvements from the life cycle perspective is important, but there are cases where it is not necessarily possible to clarify values based on a life cycle. It must be decided specifically what to improve and, according to
the purpose of the evaluation, whether or not the range of activities that are the object of the calculation should be the life
cycle.

⇒ See page 8 of this handbook.

eco-efficiency indicators and factors result in new
Q Willstandard for each type of product?
can be common, but further
A Theydiscussion is necessary.
Indicator should be common so they can be used as criteria for purchasing, but further study is necessary before they
can be applied this way. It is necessary to discuss ways to apply an effective utilization that increases awareness of thesignificance of the factors and eco-efficiency, rather than only focusing on the number of factors.

⇒ See page 17 of thishandbook.

23

Appendixes

Appendix

3 Overseas trends in eco-efficiency and factors

What is the original factor, Factor10?
A concept proposed by Professor Schmidt-Bleek of the Wuppertal Institute in Germany, Factor X represents longterm target values to guarantee the sustainability of the globe.
The grounds for setting targets are not strictly specified.
It is explained as a method of achieving sustainable economy by reducing the flow of resources on the earth to onehalf. To count on fairness, consideration must be given to the achievement by developing countries of the yardstick of living of developed countries where only 1/5 of the world's people live. This shows that the citizens of the developed countries must reduce the quantities of resources and energy they consume to 1/10 of its present level (= increase productivity
by 10) in a single generation (approximately 50 years).

Value of present services = 1
Present environmental impact = 1⇒

Value of services in 50 years = 5=Factor10

Environmental impact in 50 years = 1/2

The point that should be the issue is not the value 10. If the population rises, increasing the per capita consumption
in the developed countries, the factor that should be the target will also rise, forcing an increase in eco-efficiency andresource productivity. This is because the environmental capacity of the world is limited. Efforts are now being made to
develop various technologies needed to achieve Factor X. In order to improve factors at the social level, it is necessary to
focus on a method of transforming the structure of society to provide adequate services with the minimum quantity ofresources of energy by altering existing consumption patterns instead of relying on new products and technologies.

What is eco-efficiency?
Eco-efficiency was originally proposed at a United Nations conference (Earth Summit) concerning the environmentand development held in Rio De Janeiro in 1992. Later the World Business Council for Sustainable Development(WBCSD) defined it as follows. Eco-efficiency is achieved by the delivery of competitively-priced goods and services
that satisfy human needs and bring quality of life, while progressively reducing ecological impacts and resource intensity.
The supply of goods and services should be considered from the life cycle perspective. And the impact of this supply
must be reduced to a level at least in line with the earth's estimated carrying capacity. The WBCSD has proposed sevenelements to improve eco-efficiency.

1. A reduction in the material intensity of goods or services;
2. A reduction in the energy intensity of goods or services;
3. Reduced dispersion of toxic materials;
4. Improved recyclability;
5. Maximum use of renewable resources;
6. Greater durability of products;
7. Increased service intensity of goods and services.
WBCSD image of eco-efficiency improvement.

24

The WBCSD recommends the application of eco-efficiency indicator to measure the degree of achievement of theabove goals. Later the Organization for Economic Co-operation and Development (OECD) positioned eco-efficiency as aconcept important for achieving sustainable development. The OECD defines it as, dividing the value of products produced by a corporation, an industry, or an economy by the total environmental load.

25

Please send your comments and questions about this handbook to the following.
Japan Environmental Management Association for Industry (JEMAI)
Environmental Management Promotion Department, Eco-efficiency Research Center
Tel: +81-(0)3-5209-7703
Fax: +81-(0)3-5209-7717
E-mail: eco-efficiency@jemai.or.jp
This handboodk has been prepared as part of an METI(Ministry of Economy and Trade andindustry ,Japan)-funded project for eco-efficiency of FY2004
Unauthorized reprinting forbidden.

Eco-efficiency and Factor
Handbook
for Products

Creation of Indicator for a Sustainable Society――Toward greater value and reduced environmental load――