We are living in a particularly uncertain and turbulent social context, marked by an increasing number of political, social, environmental, economic, and health crises.
To address this, we need to act collectively on several fronts. In Quebec, this means rapidly decarbonizing human activities, protecting and regenerating biodiversity, supporting social justice, and increasing the resilience of local economies.
These transformations imply a profound rethinking of our ways of being in the world, of producing and consuming. Nevertheless, we still have a long way to go to change the paradigm. For example, the report by RECYC-QUÉBEC and Circle Economy on the circularity index of the Quebec economy is unequivocal: the vast majority of the 271 million tonnes of resources consumed each year in Quebec are not reintegrated into our economy¹. To remedy this, we need to improve our understanding of value chains and develop synergies between the various players in the territory to support a more circular economy.
Businesses have a key role to play in transforming the Quebec economy and society.
For example, to support greenhouse gas emissions reduction trajectories and reach the Canadian target of 40% to 45% emissions reduction by 2030², companies must not only reduce emissions from their direct activities but also support the reduction of emissions from other stakeholders in their value chain. Indeed, up to 90% of emissions come from assets not owned or controlled by the reporting company³. A major challenge at a time when supply chains are becoming increasingly complex and globalized, and a significant proportion of the production of consumer products and goods takes place outside the Canadian⁴ territory.
In their drive to improve their environmental performance, companies must also be careful not to transfer their direct environmental impacts up or down their value chain, or to another impact category (for example, with the electrification of transport, transferring the impact on climate change to the impact on mineral depletion). An evolution towards a corporate social responsibility extended to all stakeholders is therefore a necessity if we are to address the issues facing Quebec society. This requires greater measurement of the societal impacts of organizations and greater transparency across the entire value chain. On this last point, notable advances are hoped for in the coming years with the recent creation of the International Sustainability Standard Board⁵, whose mission is to manage international standards for the disclosure of extra-financial information by companies.
Finally, companies must also respond to growing pressure from consumers who are increasingly interested in what lies behind the products or services they consume. Eight out of ten Quebecers are looking for more sustainable products, and more than half feel that companies don't provide enough information about the conditions under which products are made⁶. In short, consumers have increasingly high expectations when it comes to corporate social responsibility.
Adopting a lifecycle approach is a suitable way of meeting these challenges. This approach recognizes that a company's decisions have an impact on what happens at each stage in the life cycle of a product or service. This approach enables the company to make choices that are beneficial to the environment, society, and the economy.
At the level of an organization, the life cycle approach consists of assessing the environmental and social impacts of all the activities in the value chain linked to the organization's portfolio of products and services: direct activities (such as design, manufacturing processes, and distribution), but also activities upstream of the organization (such as the extraction of materials and the manufacture of components) and downstream of the organization (such as the use of products and services and their end-of-life).
Depending on the quality of the data available, this assessment can be carried out either qualitatively, to identify the activities in the value chain with the greatest impact, or quantitatively, to compare products and services and select those with the lowest impact.
Life cycle assessment (LCA) is the most widely used tool in the life cycle approach for quantifying the environmental impact of a product or service. This assessment method is standardized (ISO 14040 and 14044).
The global understanding of the value chain acquired through the life cycle approach enables the company to identify opportunities for improving the environmental performance of its activities. This translates into benefits for the company on several levels, such as :
The following two case studies provide concrete examples of how companies can benefit from adopting a lifecycle approach.
A Quebec-based furniture manufacturer produces sawdust that is contaminated during the manufacturing process, making it unsuitable for agricultural use. The sawdust therefore ends up in a landfill, generating significant financial costs and environmental impacts. Adopting a broader perspective, the company set up a working group with external stakeholders to find innovative ways of decontaminating the residual contaminated material using fungi, as well as energy recovery outlets. In addition to creating synergies with other territorial players, this initiative diverts 200 tonnes of waste from landfills and saves several thousand dollars a year⁷.
On the other side of the world, a Malaysian manufacturer of solvent-based adhesives is feeling increasing pressure from its customers regarding the environmental impact of its products and is questioning its practices and its market. What can the company do in the face of a shrinking local market for adhesives? How to manage a manufacturing plant with aging machinery and workers nearing retirement? How to improve a product that is hazardous to human health during production and end use? Using an environmental hotspot analysis, the company identified risks throughout its supply chain. It then decided to launch a new range of water-based adhesives, less polluting and less hazardous to health, and to create a coalition with some of its suppliers to launch a new value chain. Investment funds decided to join the initiative and invested to renew the equipment. The modernization of the plant reduces health problems, increases productivity, attracts new talent, and opens up opportunities in a new market for eco-designed products. These new products are gradually replacing the old ones. The company's revenues increased by 10%. This Malaysian company recognizes that the global transition to more eco-designed production is a business opportunity⁸.
Increasingly aware of the impact of their value chain, companies are now opting for a life-cycle approach to develop their products and services in line with their environmental commitment.
COESIO offers to support company managers in the deployment of an effective life cycle approach structure. This support is divided into three main phases, to develop a global understanding of environmental impacts across your organization's entire value chain, and to identify action levers for systemic improvement.
The life cycle approach is integrated within the EVO2030 Program, a unique North American approach to continuous improvement of overall corporate performance in pursuit of the UN's seventeen Sustainable Development Goals (SDGs) for 2030.
The EVO2030 program will enable your company to better understand the sustainable development issues that affect you directly, to be proactive in addressing the global climate crisis, to take into account the environmental and social impacts of your business activities, and to better support your organizational approach with innovative or proven solutions.
In short, we provide comprehensive support in the creation and implementation of a credible and ambitious organizational approach that will enable your company to evolve favorably in a sustainable development perspective.
Companies wishing to participate in the EVO2030 Program are invited to complete the EVO2030 form on the EVO2030 Program website. A date for an information meeting and a preparation questionnaire will be sent within 72 hours of the request.
To learn more about the EVO2030 Program, please visit the official website: www.evo2030.com or attend one of our launch events.
https://www.recyc-quebec.gouv.qc.ca/sites/default/files/documents/rapport-indice-circularite-fr.pdf
https://www.canada.ca/fr/environnement-changement-climatique/services/indicateurs-environnementaux/climat.html
https://www.carbontrust.com/what-we-do/measure-and-evaluate/value-chain-and-supply-chain-sustainability
https://qe.cirano.qc.ca/theme/activite-economique/commerce-exterieur
https://www.ifrs.org/groups/international-sustainability-standards-board/#about
https://www.idp-innovation.com/les-quebecois-et-la-consommation-responsable-portrait/
https://www.quebeccirculaire.org/library/h/recueil-de-synergies-2021.html
https://www.lifecycleinitiative.org/wp-content/uploads/2019/03/unep_nairobi_V7-LR.pdf
Written by :
Marius André, Operations Manager and Partner
Léo Queinnec, Analyst
