The future in and of criticality assessments

In recent literature, the concept of criticality aspires to provide a multifaceted risk assessment of resource supply shortage. However, most existing methodologies for the criticality assessment of raw materials are restricted to a fixed temporal and spatial reference system. They provide a snapshot in time of the equilibrium between supply and demand/economic importance and do not account for temporal changes of their indicators. The static character of criticality assessments limits the use of criticality methodologies to short‐term policy making of raw materials. In the current paper, we argue for an enhancement of the criticality framework to account for three key dynamic characteristics, namely changes of social, technical, and economic features; consideration of the spatial dimension in site‐specific assessments; and impact of changing governance frameworks. We illustrate how these issues were addressed in studies outside of the field of criticality and identify the dynamic parameters that influence resource supply and demand based on a review of studies that belong to the general field of resource supply and demand. The parameters are grouped in seven categories: extraction, social, economic, technical, policy, market dynamics, and environmental. We explore how these parameters were considered in the reviewed studies and propose ways and specific examples of addressing the dynamic effects in the criticality indicators. Furthermore, we discuss the current work on future scenarios to provide reference points for indicator benchmarks. The insights and guidelines derived from the review and our recommendations for future research set the foundations for an enhanced dynamic and site‐specific criticality assessment framework.     

Industrial Ecology and Competitiveness

In the emerging field of industrial ecology one of the unsettled questions is the degree to which design for the environment, closing energy and materials loops, and other industrial ecology concepts apply at the firm level. In this article we examine this issue with a particular focus on whether industrial ecology can guide company strategy and efforts to enhance competitiveness.
We conclude that industrial ecology thinking will often be useful for firms seeking to improve their resource productivity and thus their competitiveness. The systems perspective that industrial ecology promotes can help companies find ways to add value or reduce costs both within their own production processes and up and down the supply chain. But industrial ecology cannot always be counted upon to yield competitive advantage at the firm level. In some cases, the cost of closing loops will exceed the benefits. In other cases, regulatory requirements do not fully internalize environmental costs, and thus polluting firms may gain temporary or permanent cost advantages relative to companies that attempt to eliminate all emissions. Finally, because industrial ecology focuses attention on materials and energy flows, it may not optimize other variables that contribute to competitiveness within the corporate setting.     

Six Years of Criticality Assessments: What Have We Learned So Far?

The “criticality” of the various elements used in modern technologies is a topic of increasing interest, with groups from governments, consultancies, and academic institutions developing a variety of methodologies and using them to make assessments. Other groups from similar organizations are studying the methodologies that generate these assessments. Here, we analyze the different types of studies, review issues of methodology, and comment on features of nine different studies published between 2008 and mid‐2014. From these studies, we derive lists of problematic, debatable, and desirable aspects of criticality studies. We emphasize that the criticality of an element can vary depending on the target organization and that, because criticality is a dynamic state, it must be periodically re‐evaluated. There is substantial value to be derived if a more uniform methodology could be developed. We discuss how a harmonized methodological framework might be achieved and what its benefits could be. Putting into place such a structure for collaborative and publicly available criticality determinations would be very likely to better serve the present and future needs of corporations and governments than is the case at present, where different methodologies generate different results.     

Regional Patterns in Global Resource Extraction

This article presents an account of global resource extraction for the year 1999 by material groups, world regions, and development status. The account is based on materials flow analysis methodology and provides benchmark information for political strategies toward sustainable resource management. It shows that currently around 50 thousand megatons of resources are extracted yearly on a global scale, which results in a yearly global average resource use of around 8 tonnes per capita. Assuming further growth in world regions not yet close to the levels of resource use in the industrial cores—such as India or China—numbers could easily double once these parts of the world come to fully incorporate the industrial mode of production and consumption. This article contributes to information on resource use indicators, complementing and enriching information from economic accounting in order to facilitate political measures toward a sustainable use of resources.     

The Influence of State‐Ownership on Eco‐Innovations in Russian Manufacturing Firms

This paper studies drivers for eco‐innovation in Russian manufacturing firms on a sample of 2,212 innovative firms, of which over 600 introduced eco‐innovations. The companies in our sample specifically mention environmental regulation as a reason for engaging in eco‐innovations. Furthermore, we show that those firms who engage in eco‐innovations are motivated even stronger by the desire to increase resource efficiency. Companies under state ownership are especially prone to a higher likelihood to invest. We conclude that regulations are mostly relevant to the late comers who are obliged to follow minimum standards. On the other hand, the state uses its controlling influence to press companies under their control to exceed these minimum standards. Thus, we argue, state ownership does indeed have an influence on both the likelihood to eco‐innovate and on the levels of spending. Eco‐innovative state‐owned companies are only prone to invest in eco‐innovations, if they get additional money.     

Alternative Scenarios for Managing the Environmental Performance of a Service Sector Company

This article presents a scenario analysis for a life-cycle model of service sector companies. The model is based on six case companies and it is applied to test the influence of 32 management scenarios. The scenarios simulate feasible options for environmental management measures in companies, and the life-cycle assessment method is used to model their relevance in terms of the total environmental impact of the company. The study found that the bulk of tested scenarios had only a minor influence on the total environmental impact of the company. Some individual management scenarios, though, turned out to have a major influence on the organization's environmental performance. The scenarios with greatest influence were those related to the procurement of electricity, building energy consumption, commuting vehicle mix, space usage efficiency, and refurbishment periods of the building. All of these management scenarios had an influence of more than 10% on the environmental impact of the model organization.     

Extraction and visualization of industrial service portfolios by text mining of 10-K annual reports

As more and more manufacturing companies accumulate profits from service provision, the ability to monitor the adoption of the industrial services of other companies grows more important. The purpose of this paper is to propose a data-driven methodology for extraction of the industrial service portfolio from a company’s annual report. In this approach, form 10-K, a special format of annual report regulated by the Security Exchange Commission in United States is utilized as the data source. Because this document type contains rich information on a company’s operating segments, industrial service information is easily retrieved. Given the sheer volume of such documents, however, manual inspection is impractical. In order to resolve this issue, a text-mining algorithm is applied to automatically examine word-usage patterns and to identify the service portfolio. Then, the service portfolio’s relative position in the market is visualized on a positioning map. Due to the multi-dimensionality of the data, self-organizing map (SOM) is used as an alternative visualization scheme. SOM enables easy identification of the major service clusters as well as niche areas in the market; these, in turn, provide valuable information pertinent to service development planning. Also, and not least, policy makers can utilize our methodology to detect the servitization trends of various industries.     

生态效率方法研究进展与应用

生态效率同时考虑经济效益和环境效益,是将可持续发展的宏观目标融入中观（区域）和微观（企业）的发展规划与管理中的有效工具。回顾了生态效率的概念和发展过程,分析了其内涵和指标体系,探讨了几种典型计算方法与模型,并介绍了国内外在企业、行业和区域3个层次上的应用实践,讨论和提出了进一步开展生态效率研究的焦点问题和未来方向。     

The Relationship between Cleaner Production and Industrial Ecology

Industrial ecology is an emerging concept for the promotion of environmentally sound manufacturing and consumption. It aims to balance industrial development with the sustainable use of natural resources including energy, materials, and the capacity of the environment to assimilate wastes and render valuable services. The widespread adoption of industrial ecology can be furthered by a critical review of current preventive activities in industry. This article reviews the role that current preventive environmental activities-known as cleaner production-could play in the implementation of industrial ecology. The article focuses on whether cleaner production in its present form is sufficient, in terms of breadth of both industrial activities (sources) and environmental concerns (impacts addressed), for achieving industrial ecology's core objectives. It is concluded that current cleaner production practices are not sufficient for achieving the ultimate goals of industrial ecology. Nevertheless, cleaner production practices and methodologies may evolve into useful instruments for the implementation of industrial ecology.     

Material Flow Optimization in By‐product Synergy Networks

By‐product synergy (BPS) is an industrial ecology practice that involves utilization of industrial by‐products as feedstocks for other industrial processes. A novel decision support tool is developed to analyze BPS networks that involve material processing and transport among regional clusters of companies. Mathematical programming techniques are used to determine the optimal network design and the material flows that minimize total cost or environmental impacts. This methodology is incorporated into a graphical software package called Eco‐Flow?. The tool has been applied to model and analyze available synergies in an existing BPS network centered in Kansas City, Missouri. A base case, which assumes no synergies, is compared with the optimal BPS solution found by Eco‐Flow?. The results for Kansas City suggest that when companies in the network cooperate to optimize the system profitability, up to $15 million per year of savings are possible. The findings also indicate that the BPS approach would result in 29% reduction in total cost, 25.8% reduction in average company cost, 30% reduction in carbon dioxide (CO₂) emissions, and 37% reduction in waste to landfill. The modeling approach is being extended to better represent the dynamics of industrial and ecological processes.     

Consumers can enhance ecosystem productivity and stability in changing environments

There is increasing interest in the impacts of pulsed resource inputs (e.g., seasonal fluctuations in primary production) on ecosystem properties. However, theoretical models have focused on the ecosystem role of consumers only in stable environments. We investigated how the consumption rate affects ecosystem properties when resource supplies are pulsed using a simple model with numerical simulations. We initially investigated how primary production responds to resource supply shortages under various consumption rates and found that a vigorous consumer attenuates a rapid reduction in primary production. We next examined ecosystem properties under pulsed resource supplies. Intermediate consumption enhances primary production. The consumption rate that maximizes productivity differs for producers and consumers in a given resource supply environment, irrespective of the pattern of pulsation. The enhancement of primary production and the maximization of secondary production occur simultaneously in a stable environment but are not always the same when the resource supply is pulsed. We also investigated the variability of primary production and found that intermediate consumption rates reduce its coefficient of variation. In addition, we found that consumers with either very low or very high consumption rates are vulnerable to extinction when resource supplies are pulsed. Therefore, consumers with intermediate consumption rates contribute not only to the enhancement and stabilization of primary production but also to the stability of the consumer population itself.     

‘Habitat’ Suitability Index Mapping for Industrial Symbiosis Planning

By ‘working with the willing’, the National Industrial Symbiosis Programme (NISP) has successfully facilitated industrial symbiosis throughout the United Kingdom and, in the process, delivered significant economic and environmental benefits for both Programme members and the country as a whole. One of the keys to NISP's success is that, unlike failed attempts to plan and construct eco‐industrial systems from scratch, the Programme works largely with existing companies who have already settled in, developed, and successfully operate within a given locale. This article argues that existing and mature industrial systems provide the best prospects for identifying opportunities for, and ultimately facilitating, industrial symbiosis. Due to levels of diversification and operational fundamental niches that, in the fullness of time, develop within all industrial systems, industrially mature areas are deemed to be industrial symbiosis ‘conducive environments’. Building on the conservation biology concept of a habitat suitability index, the article presents a methodology for comparing a potential site for eco‐industrial development to a known baseline industrial ‘habitat’ already identified as being highly conducive to industrial symbiosis. The suitability index methodology is further developed and applied to a multi‐criteria evaluation geographic information system to produce a ‘habitat’ suitability map that allows practitioners to quickly identify potential industrial symbiosis hotspots (the methodology is illustrated for England). The article concludes by providing options for the development of symbiosis suitability indices and how they can be used to support the facilitation of industrial symbiosis and regional resource efficiency.     

Reduction and reallocation of water use of products in Beijing

The virtual water concept has received significant attention through manifesting the role of human activities such as consumption and international trade on water resources. However, few studies have focused on how the interactions of local supply chain exert impact on local water resources associated with virtual water flows. In this study, we introduce an indicator which is attached to the virtual water concept, termed the “internal water use of products” (IWUP), to examine the direct and indirect water use from local water supply for goods and services in Beijing for the years 1997, 2000, 2002, 2007, and 2010. This indicator links the pressure on local water resources to the final products with sectoral details, highlighting the importance of economic analysis in local water resource management. A structural decomposition analysis revealed that the increase in economic water productivity would have caused Beijing's IWUP to decrease by 196% from 1997 to 2010, if other determining factors remained constant. Such great efficiency improvements have allowed Beijing to fulfill its objectives of economic growth, whilst in the meantime reducing the water used in production. However, we also found that production structure adjustment would increase the IWUP, mainly due to a shift from agricultural and industrial sectors to service sectors.     

Import‐based Indicator for the Geopolitical Supply Risk of Raw Materials in Life Cycle Sustainability Assessments

There is a growing concern over the security and sustainable supply of raw material among businesses and governments of developed, material‐intensive countries. This has led to the development of a systematic analysis of risk incorporated with raw materials usage, often referred as criticality assessment. In principle, this concept is based on the material flow approach. The potential role of life cycle assessment (LCA) to integrate resource criticality through broadening its scope into the life cycle sustainability assessment (LCSA) framework has been discussed within the LCA communities for some time. In this article, we aim at answering the question of how to proceed toward integration of the geopolitical aspect of resource criticality into the LCSA framework. The article focuses on the assessment of the geopolitical supply risk of 14 resources imported to the seven major advanced economies and the five most relevant emerging countries. Unlike a few previous studies, we propose a new method of calculation for the geopolitical supply risk, which is differentiated by countries based on the import patterns instead of a global production distribution. Our results suggest that rare earth elements, tungsten, antimony, and beryllium generally pose high geopolitical supply risk. Results from the Monte Carlo simulation allow consideration of data uncertainties for result interpretation. Issues concerning the consideration of the full supply chain are exemplarily discussed for cobalt. Our research broadens the scope of LCA from only environmental performance to a resource supply‐risk assessment tool that includes accessibility owing to political instability and market concentration under the LCSA framework.     

A Material Flow‐based Approach to Enhance Resource Efficiency in Production and Recycling Networks

Resource and energy efficiency are key strategies for production and recycling networks. They can contribute to more sustainable industrial production and can help cope with challenges such as competition, rising resource and energy prices, greenhouse gas emissions reduction, and scarce and expensive landfill space. In pursuit of these objectives, further enhancements of single processes are often technologically sophisticated and expensive due to past achievements that have brought the processes closer to technical optima. Nevertheless, the potential for network‐wide advancements may exist. Methods are required to identify and assess the potential for promising resource and energy efficiency measures from technical, economic, and ecological perspectives. This article presents an approach for a material flow‐based techno‐economic as well as ecological analysis and assessment of resource efficiency measures in production and recycling networks. Based on thermodynamic process models of different production and recycling processes, a material and energy flow model of interlinked production and recycling processes on the level of chemical compounds is developed. The model can be used to improve network‐wide resource efficiency by analyzing and assessing measures in scenario and sensitivity analyses. A necessary condition for overcoming technical and economic barriers for implementing such measures can be fulfilled by identifying strategies that appear technologically feasible and economically and ecologically favorable. An exemplary application to a production and recycling network of the German steel and zinc industry is presented. From a methodological point of view, the approach shows one way of introducing thermodynamics and further technological aspects into industrial planning and assessment.     

Assessing resource depletion in LCA: a review of methods and methodological issues

Purpose

Political interest in the future availability of natural resources has spiked recently, with new documents from the European Union, United Nations Environment Programme and the US National Research Council assessing the supply situation of key raw materials. As resource efficiency is considered a key element for sustainable development, suitable methods to address sustainability of resource use are increasingly needed. Life cycle thinking and assessment may play a principal role here. Nonetheless, the extent to which current life cycle impact assessment methods are capable to answer to resource sustainability challenges is widely debated. The aim of this paper is to present key elements of the ongoing discussion, contributing to the future development of more robust and comprehensive methods for evaluating resources in the life cycle assessment (LCA) context.

Methods

We systematically review current impact assessment methods dealing with resources, identifying areas of improvement. Three key issues for sustainability assessment of resources are examined: renewability, recyclability and criticality; this is complemented by a cross-comparison of methodological features and completeness of resource coverage.

Results and discussion

The approach of LCA to resource depletion is characterised by a lack of consensus on methodology and on the relative ranking of resource depletion impacts as can be seen from a comparison of characterisation factors. The examined models yield vastly different characterisations of the impacts from resource depletion and show gaps in the number and types of resources covered.

Conclusions

Key areas of improvement are identified and discussed. Firstly, biotic resources and their renewal rates have so far received relatively little regard within LCA; secondly, the debate on critical raw materials and the opportunity of introducing criticality within LCA is controversial and requires further effort for a conciliating vision and indicators. We identify points where current methods can be expanded to accommodate these issues and cover a wider range of natural resources.     

Thermodynamic Approach to Evaluate the Criticality of Raw Materials and Its Application through a Material Flow Analysis in Europe

This paper makes a review of current raw material criticality assessment methodologies and proposes a new approach based on the second law of thermodynamics. This is because conventional methods mostly focus on supply risk and economic importance leaving behind relevant factors, such as the physical quality of substances. The new approach is proposed as an additional dimension for the criticality assessment of raw materials through a variable denoted “thermodynamic rarity,” which accounts for the exergy cost required to obtain a mineral commodity from bare rock, using prevailing technology. Accordingly, a given raw material will be thermodynamically rare if it is: (1) currently energy intensive to obtain and (2) scarce in nature. If a given commodity presents a high risk in two of the three dimensions (economic importance, supply risk, and thermodynamic rarity), it is proposed to be critical. As a result, a new critical material list is presented, adding to the 2014 criticality list of the European Commission (EC) Li, Ta, Te, V, and Mo. With this new list and using Sankey diagrams, a material flow analysis has been carried out for Europe (EU‐28) for 2014, comparing the results when using tonnage and thermodynamic rarity as units of measure. Through the latter, one can put emphasis on the quality and not only on the quantity of minerals traded and domestically produced in the region, thereby providing a tool for improving resource management.     

Insights on the Use of Hybrid Life Cycle Assessment for Environmental Footprinting

Establishing a comprehensive environmental footprint that indicates resource use and environmental release hotspots in both direct and indirect operations can help companies formulate impact reduction strategies as part of overall sustainability efforts. Life cycle assessment (LCA) is a useful approach for achieving these objectives. For most companies, financial data are more readily available than material and energy quantities, which suggests a hybrid LCA approach that emphasizes use of economic input‐output (EIO) LCA and process‐based energy and material flow models to frame and develop life cycle emission inventories resulting from company activities. We apply a hybrid LCA framework to an inland marine transportation company that transports bulk commodities within the United States. The analysis focuses on global warming potential, acidification, particulate matter emissions, eutrophication, ozone depletion, and water use. The results show that emissions of greenhouse gases, sulfur, and particulate matter are mainly from direct activities but that supply chain impacts are also significant, particularly in terms of water use. Hotspots were identified in the production, distribution, and use of fuel; the manufacturing, maintenance, and repair of boats and barges; food production; personnel air transport; and solid waste disposal. Results from the case study demonstrate that the aforementioned footprinting framework can provide a sufficiently reliable and comprehensive baseline for a company to formulate, measure, and monitor its efforts to reduce environmental impacts from internal and supply chain operations.     

Effects of E-Commerce on Greenhouse Gas Emissions: A Case Study of Grocery Home Delivery in Finland

In this article, we present a literature review of the general and environmental effects of e-commerce in various parts of the demand-supply chain. These are further translated into effects on greenhouse gas (GHG) emissions in the food production and consumption system. The literature study revealed many opportunities for e-commerce to reduce GHG emissions in the food production and consumption system. Some possibly negative effects were also identified. Electronic grocery shopping (e-grocery) home delivery service was chosen as the subject of a case study because of its direct and indirect potential for reducing the GHG emissions in the food production and consumption system.
GHG emission reduction potential through the implementation of various e-grocery home delivery strategies was quantified. Depending on the home delivery model used, it is possible to reduce the GHG emissions generated by grocery shopping by 18% to 87% compared with the situation in which household members go to the store themselves. We estimate that the maximum theoretical potential of e-grocery home delivery service for reducing the GHG emissions of Finland is roughly 0.3% to 1.3%; however, the current and estimated future market potential is much smaller, because the estimated market share of e-grocery services is only 10% by 2005. Narrowing the gap between the theoretical and the actual potential requires a model that would simultaneously provide additional value to the consumer and be profitable to companies. To be able to achieve significant reductions in GHG emissions, system-level innovations and changes are required. Further research is needed before conclusions can be reached as to whether e-commerce and e-grocery are useful tools in that respect.     

Probabilistic Assessment of Industrial Synergistic Systems

A probability‐based method is presented for assessing the reliability of synergistic systems and their ability to cope with the uncertainties often associated with two of a company's main types of activities: those carried out by the manufacturing department, and those carried out by the storage department. This method is based on a model focusing on the dynamic simulation of synergistic flows in terms of the mass balance. It differs from previous material flow analysis tools, which do not take into account the temporary failures occurring at the companies involved and the resulting loss of production capacity. The failure events occurring at any of the companies in a synergistic system may result in various levels of synergy failure and a short supply of resources for other companies. We therefore propose to identify the main factors responsible for a lack of synergy. We developed a dynamic stock simulation model for assessing the reliability of synergistic systems as well as that of the individual companies of a system before and after a synergy is set up. We first confirm the validity of this model by comparing the results with those based on the binomial theorem in system reliability analysis, and we then apply the model to the case of an industrial system. We conclude that companies involved in a synergistic system will inevitably be exposed to a higher risk of resource shortage because of the unsteady synergistic and outsourcing flows on which they depend. More efficient stock management methods would prevent the occurrence of the risks often associated with synergistic flows.