Comprehensive support is provided for application and verification processes related to the acquisition of Environmental Product Declarations, covering the entire scope from the establishment of internal organizational frameworks to the institutionalization of automated calculation and application processes.
Supporting the Enhancement of Product Competitiveness and Business Responsiveness Through the Acquisition of Environmental Product Declarations
Solution
By disclosing product environmental information that includes third-party-verified Carbon Footprint of Product (hereinafter "CFP") data, advantages in public procurement, eligibility for tax incentives, and the ability to respond to sustainability requirements from customers are enabled, thereby contributing to the enhancement of product competitiveness. In addition, ABeam Consulting contributes to securing cost competitiveness in the acquisition of Environmental Product Declarations (hereinafter "EPD") by realizing automated calculation and reducing application workloads through data integration with core systems such as PLM, MES and ERP.
Background
Increasing Requirements for EPD Disclosure
In recent years, there has been an increasing number of cases in which customers require not only the results of CFP calculations conducted internally, but also third-party verification. As a means of responding to such requirements, the acquisition of EPD has been advancing. EPD is a framework for quantitatively evaluating and disclosing multiple environmental impact categories, including CFP, acidification, and resource consumption, across the entire product life cycle, and require third-party verification by a program operator based on international standards such as ISO 14025. Unlike the disclosure of CFP alone, they are characterized by the ability to present multifaceted environmental information in a reliable and internationally consistent manner.
In overseas public procurement, requirements for EPD are increasingly being mandated, and in Japan as well, the Green Purchasing Act positions the disclosure of quantitative environmental value information as an evaluation criterion or a consideration item.
Particularly in the construction sector, EPD is eligible for additional points under the Leadership in Energy and Environmental Design (LEED) certification, an international building environmental certification system, which has led to early adoption primarily in the building materials sector. Furthermore, with the anticipated launch of systems to promote the implementation of Life Cycle Assessment (hereinafter "LCA") to evaluate environmental impacts across the entire life cycle of buildings, the Ministry of Land, Infrastructure, Transport and Tourism is supporting the development of Environmental Product Declarations for major building materials, resulting in a rapid expansion of their acquisition in the building materials sector.
In addition, in some countries, moves have been observed to mandate the attachment of EPD for imported products, and the importance of EPD within international supply chains is increasing further.
Challenges
Although there is interest in EPD, organizations hesitate to proceed due to the need to develop Product Category Rules (hereinafter "PCR"), advanced specialized expertise and continuous monitoring
Pitfalls
- When no applicable PCR exists for the target product, it is necessary for the company to act as the initiator by establishing a working group and leading the examination and development of a draft PCR. This requires coordination with internal and external stakeholders and represents a significant hurdle for organizations.
- Conducting life cycle assessment of products in accordance with PCR requires advanced specialized expertise, including proprietary rules related to renewable energy and mass balance approaches, as well as calculation of biogenic carbon content. In addition, it is difficult to organize and explain calculation data, assumptions, and evidence required for third-party verification.
- If environmental impacts change by 10% or more during the validity period of an EPD, updates or re-verification are required. As a result, even after acquisition, it is necessary to maintain a continuous monitoring framework and establish internal processes that enable changes to be appropriately identified and reflected.
Approach
ABeam Consulting provides comprehensive support to establish EPD as an operational practice, covering the entire process from initial consideration for acquisition, LCA calculation, PCR compliance, and third-party verification support, to the development of continuous operational frameworks following acquisition, as well as the automation of calculation and application processes.
In addition to support for EPD calculation and application, specialists with extensive expertise in manufacturing site operations provide practical support aligned with each client’s actual business conditions.
Furthermore, ABeam Consulting possesses extensive experience in data integration with core manufacturing systems such as PLM, MES and ERP, and provides comprehensive support for the establishment of sustainable internal operational frameworks by integrating the collection and management of environmental data with existing information technology infrastructure. In addition, given that EPD calculation requires a considerable amount of effort, support is also provided for the automation of calculation processes with a view toward the expansion of the number of target products, thereby enabling the establishment of a scalable EPD acquisition framework.
Key features
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EDP Calculation and Application Support
Specialists with expertise in EPD and the manufacturing industry review calculation results and accurately assess whether the calculation basis and data preparation status can withstand third-party verification. In addition, upon request, comprehensive support is provided across the entire process, from EPD application to responses for reviews with third-party verification bodies.
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Establishment of Internal Operational Frameworks
Through a business consulting approach, consistent support is provided from the design of internal organizational structures and business processes to promote the acquisition of EPD to their implementation and establishment.
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Automation of Calculation and Application Through Integration with Core Systems
In order to minimize costs associated with the communication of environmental value, data accumulation is conducted through integration with existing core systems, enabling the automation of processes from calculation to application.
Efficient Calculation Proposals Based on Proven Experience and Calculation Review and Moderator Support by LCA Experts
Extensive calculation experience exists across diverse product sectors, including electrical and electronics, construction, and automobiles and automotive components. In addition to verifying the validity of calculation results, practical calculation methodologies that reduce operational burden—such as the streamlining of data collection and the definition of calculation boundaries—are also proposed.
The presence of LCA experts enables detailed reviews of application documents and calculation results from a specialist perspective. Multilateral verification of the consistency of calculation models, data quality, and conformity with category rules facilitates the verification process and supports the acquisition of EPD.
In product categories where existing PCR do not exist, the establishment of a working group and the development of new PCR are required. LCA experts with advanced specialization take a leading role throughout the PCR development process, including the facilitation of discussions, preparation of draft proposals, responses to public comments, and report preparation. Furthermore, responsibility is undertaken for coordination with program operators and consensus building among stakeholders, ensuring compliance with standards through to the successful completion of the review process.
Support for the establishment of internal frameworks for the continuous acquisition of EPD, supporting GX management
Comprehensive support is provided for the establishment of internal frameworks to enable the continuous acquisition of EPD from a GX promotion perspective. Positioning the acquisition and utilization of EPD not merely as compliance with regulatory requirements, but as initiatives that lead to the utilization of environmental data and the advancement of operations at the product and business unit levels, constitutes one of the key efforts in promoting GX within enterprises.
LCA calculation requires collaboration across numerous departments, including design, production, procurement, quality, logistics, and sales, and it is also important to clearly define the responsible departments for the management and updating of environmental data.
ABeam Consulting provides comprehensive support for a series of initiatives, including the clarification of roles and responsibilities among related departments, the design of environmental data management processes, the development of internal rules and manuals, and training for personnel. Through this approach, support is provided not only for one-time acquisition of EPD but also for the establishment of sustainable calculation and internal promotion frameworks that support GX management.
Establishment of a Flexible Data Integration Foundation Through the "GX Platform"
Automation of calculation processes integrated with existing business systems is essential in order to realize EPD calculation and improve operational efficiency in communicating environmental value. Specifically, by automatically linking data collected from various systems through a data integration foundation that supports EPD calculation and green transformation promotion (hereinafter "GX Platform"), and by establishing a mechanism to perform Environmental Product Declaration calculation and analysis using such data, the scalable expansion of EPD acquisition becomes possible.
In EPD calculation, it is necessary to identify energy consumption, water usage, and other factors for each product; therefore, the construction of allocation logic integrated with diverse existing information technology systems is indispensable. By positioning the "GX Platform" as the core, a flexible data integration foundation can be established that is capable of accommodating increases in the number of systems to be integrated as the scope of target product groups expands.
ABeam Consulting leverages extensive expertise in supply chain sustainability and core system development to promote the establishment of the GX Platform, which enables data integration across multiple departments. Through this approach, strong support is provided for clients’ EPD strategies and the promotion of GX.
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