Life Cycle Analysis of a Company: Case Study of P&G (Research Paper Sample)

Life Cycle Analysis; a Case Study of P&G Company
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University
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Abstract
Life Cycle Analysis (LCA) provides a procedure for organisations to assess the environmental impacts of their products throughout their life cycle. This paper focuses on how LCA can be used to achieve sustainable development. It gives an overview of the four stages of LCA and the activities involved in each stage. It reviews the uses of Global Reporting Initiative (GRI) and the Carbon Disclosure Project (CDP). The essay also focuses on a case study of Procter & Gamble (P&G) Company that deals with consumer goods such as detergents and personal healthcare products. This report identifies the specific case studies in which the company undertook LCAs and the decisions made. It also defines the indicators and the limitations encountered in the assessments. Effective communication has been discussed and how it can be used to achieve the goals of the organisation and its importance. The report also focuses on how LCAs can be used to improve the environmental outcomes and achieve sustainable development. Finally, the report looks into ways that it can be modified to address different types of stakeholders of the organisation including the consumers, researchers, the community and the policy makers.
Contents
 TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc407809951" Abstract  PAGEREF _Toc407809951 \h
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 HYPERLINK \l "_Toc407809952" Introduction  PAGEREF _Toc407809952 \h
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 HYPERLINK \l "_Toc407809953" Phases of life cycle analysis  PAGEREF _Toc407809953 \h
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 HYPERLINK \l "_Toc407809954" Global Reporting Initiative (GRI) and Carbon Disclosure Project (CDP) in LCA  PAGEREF _Toc407809954 \h
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 HYPERLINK \l "_Toc407809955" PROCTER &GAMBLE (P&G) COMPANY  PAGEREF _Toc407809955 \h
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 HYPERLINK \l "_Toc407809956" The indicators for LCAs  PAGEREF _Toc407809956 \h
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 HYPERLINK \l "_Toc407809957" Limitations  PAGEREF _Toc407809957 \h
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 HYPERLINK \l "_Toc407809958" Specific Case Studies  PAGEREF _Toc407809958 \h
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 HYPERLINK \l "_Toc407809959" Effective communication between Internal and External Stakeholders  PAGEREF _Toc407809959 \h
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 HYPERLINK \l "_Toc407809960" How Life Cycle Thinking can be applied to improve Environmental Outcomes  PAGEREF _Toc407809960 \h
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 HYPERLINK \l "_Toc407809961" How this report can be modified to address other types of stakeholders  PAGEREF _Toc407809961 \h
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 HYPERLINK \l "_Toc407809962" Conclusion  PAGEREF _Toc407809962 \h
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 HYPERLINK \l "_Toc407809963" Reference List  PAGEREF _Toc407809963 \h
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Introduction
Life Cycle Analysis (LCA) can be defined as a set of procedures that are systematically compiled with an aim of examining an organisation’s resource inputs and products. This takes into account the environmental factors that affect the functioning of the company’s systems from the time it starts throughout its lifetime (Horne, Grant and Verghese, 2009). Basically, this technique uses the aspects of the environment as well as those associated with a company’ products (or services) by putting into record the inputs and outputs, identifying the environmental aspects likely to impact them and, making a proper interpretation of the records and impacts. This helps the company to make informed decisions that will assist it to attain its goals.
Life Cycle Analysis is based on certain principles. These include approaches based on the company’s life cycle, environmental aspects, transparency and scientific approaches. The aspect of the company’s life cycle seeks to combine all the stages that the company undergoes from the initial to the final stages. The environmental aspect focuses on those environmental factors that influence productivity in the company. In LCA, it is important to ensure that the exercise is conducted in a transparent way to enable the company attain correct results that will be used to make important decisions that affect its stakeholders. The scientific approach should be the basis for conducting a rigorous LCA. This is because science enables the exercise to be conducted using the correct procedures that can be used to attain the required results for the success of the organisation (Horne, Grant and Verghese, 2009).
This report seeks to explore ways in which Life Cycle Thinking can be used to achieve better environmental outcomes. It focuses on a case of P&G Company which deals with consumer goods such as pet foods, cleansing agents and human healthcare products. The management of the company has carried out a number of LCAs which has assisted it to come up with important decisions that have positive environmental outcomes. The study also focuses on how the report can be modified to address other types of stakeholders.
Phases of life cycle analysis
LCA has four main phases (Peters, 2006). These are in accordance with the ISO 14040 and 14044 standards. The results of analysis conducted in each case are important in determining how the other phases will be assessed. These phases are; Goal and scope, Life Cycle Inventory Analysis, Life Cycle Impact Assessment and, Interpretation.
Goal and scope
Any Life Cycle Assessment must have a precise and clear goals and scope of the exercise. It is an ISO requirement indicating the procedure and audience to whom the LCA will be reported. It identifies the aspects to be considered in the exercise. These include social and economic values of the company’s products or services as well as the environmental concerns to be considered in the process. It also defines the system boundaries, limitations and assumptions of the study (Peters, 2006).
Life Cycle Inventory Analysis (LCI)
This phase involves putting into record all inputs from the environment. These include water raw materials, and energy. It also involves taking records of outputs to the environment including the emissions to the air, water and land. This is developed by collecting all available data on the inputs and outputs. This data is then used to come up with a technical system showing the input-output flow. This flow model should clearly indicate the types of activities being assessed. It should also indicate the system boundaries (Peters, 2006).
Life Cycle Impact Assessment
This phase is highly influenced by the LCI analysis. In this phase, the impacts of the environment are assessed based on the results from LCI analysis. It involves identifying the category of the impacts, the indicators of the categories and model characterization. The inventory parameters are classified according to the category of the impacts. This phase also involves measurement of the impacts using proper LCI analysis methodologies and their total indicated. Some of the impact indicators include photochemical smog, Ozone layer depletion, Climate Change, Eutrophication and Acidification (Peters, 2006).
Interpretation
This is the last phase of LCA. It involves observing and evaluating the information collected from the above stages. In this phase, the summary of the results from the three stages above is given. This phase is where the assessors give conclusions and recommendations based on the data available. ISO 14040:2006 provides that the interpretation given should showcase the major issues affecting the organisation as per the findings of the study and take into account the sensitivity, completeness and consistent checking of the environmental aspects affecting the organisation’s products. It also requires the assessors to give conclusions and recommendations based on the findings as well as indicating the limitations of the study (Peters, 2006).
Global Reporting Initiative (GRI) and Carbon Disclosure Project (CDP) in LCA
Global Reporting Initiative (GRI) is framework that has been adopted across the world for reporting environmental sustainability of organisations. Every company is tasked to provide a report of how its activities affect the economy, the society and the environment in which it operates. It indicates the values of the organisation and the management strategies it employs in order to attain sustainable development (Numitor, 2011). GRI gives the standards for measurement of the impact and performance of an organisation. It spells out the guidelines to taking of measurements that enable the organisation to achieve accurate and open outcomes for the purpose of accountability. An organisation that is accountable for their analyses can easily be trusted by its stakeholders thus benefiting each party. GRI allows both parties to clearly understand the performance of the organisation. It also ensures the presence of effective communication between the parties (Numitor, 2011).
Carbon Disclosure Project (CDP) is an initiative started by a UK based organisation. It focuses on reducing the impact of the world’s business activities on the environment. CDP joins over 3000 organisations in the world to come up with strategies that can prevent carbon emissions into the environment (Dickson, 2009). It has helped to establish a facility where greenhouse gases can be deposited. It has assembled data on the amount of CO2 produced into the atmosphere due to anthropogenic activities. It sets the standards for emissions and established a way of reporting of energy use. Both the GRI and CDP act as the tools to enable more efficient reporting of environmental activities in an organisation.
PROCTER &GAMBLE (P&G) COMPANY
Procter & Gamble (P&G) Company is a multinational company dealing with consumer goods. It is based in Ohio, United States. It was founded in 1837 by two UK citizens; William Procter and James Gamble (The Procter & Gamble Company, 1989). The company deals with products such as cleaning agents, personal health...