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Sustainability as a business imperative

A.P. Moeller Maersk is taking a stand to move the company towards a more ambitious corporate climate commitment. This has led to a top rating by the Climate Corporate Responsibility Monitor in February 2022 for the integrity of the Maersk net zero pledge.

Maersk is one of the biggest players in the global logistics market. We work with Maersk in their quest to reduce the impacts from their hard-to-abate transport business, with the explicit goal of helping Maersk push the entire market toward  greener modes of operation.

2.-0 LCA consultants provide science-based support on:

Read more here on Maersk’s own pages on climate change

Preface

This report is carried out by Michele De Rosa and Jannick Schmidt (2-0 LCA,  Denmark) for United Plantations Berhad (Teluk Intan, Malaysia). The study includes data collection and calculation of LCA results for United Plantations Berhad’s palm oil production 2004-2021. The study was undertaken during the period January to February 2022.

The current report updates the results of a series of previous studies, to include also the most recent 2021 results, and it summarises the main findings of a detailed life cycle assessment report of palm oil production at United Plantations in the period 2004-2021.

Preface

This report is carried out by Jannick Schmidt and Michele De Rosa (2.-0 LCA consultants, Denmark) for United Plantations Berhad (Teluk Intan, Malaysia). The study includes data collection and calculation of LCA results for United Plantations Berhad’s palm oil production 2004-2020. The study was undertaken during the period January to March 2021.

The current report updates the results of a series of previous studies, in order to include also the most recent 2020 results, and it summarises the main findings of a detailed life cycle assessment report of palm oil production at United Plantations in the period 2004-2020.

Abstract

This paper shows an extended version of the hybrid multiregional Input-Output table (MR-HIOT) derived from Exiobase v.3.

The multi-regional hybrid supply-use tables (MR-HSUTs), which are used to derive the input-output tables where tangible goods are accounted in metric tons, energy flows in TJ and services in euros. They respect mass, energy and monetary balances.

The extensions include emissions, stock addition, stock reduction/depletion, supply and use of waste, supply and use of packaging, extraction of resources, use and withdrawal of water and land use.
The MR-HIOT here presented adopts a generalized version of by-product technology model (Stone’s method). Furthermore, a cause-effect based electricity model and indirect land use change (iLUC) model are inserted.

The generalized by-product technology model extends the Stone’s method to a a multi-regional framework and focuses on the respect of mass balance, whenever by-products substitute products with different properties produced elsewhere as principal productions.

The electricity model introduces the concept of national electricity grid where only non-constrained and competitive producers react to changes in demand. The electricity model was introduced by Schmidt et al (2011).

The iLUC model considers the substitution effects of the land use. The model was introduced by Schmidt et al. (2015). It simulates the effect of the substitution of land anytime a new production comes into place in any region of the world. Depending on the peculiarities of a country, the new demand of land may be obtained either by intensification the crops or occupying new land, i.e. forest or grassland. The emissions due to intensification and land use changes are taken into account.

The transaction matrix presented in this paper has a format 8213x8213; 164 products for 48 countries/world regions, 48 national electricity markets, six types of national land use markets for each of the 48 regions, and 5 world land use markets.

We conducted a top-level assessment of greenhouse-gas (GHG) emissions, water, and land use associated to production of the following protein sources:

This was achieved by means of a review of LCA literature, complemented with modelling done specifically for this study.

RSPO certified palm oil: What are the life-cycle benefits?

The problem

Recently, our first crowdfunded project on a comparative LCA of RSPO certified and non-certified palm oil was finalized. The study shows that RSPO certified palm oil emits 35% less GHG emissions and is associated with 20% less impacts on biodiversity compared to non-certified palm oil. These results are valid for the average of Indonesia and Malaysia in 2016. However, palm oil producers (certified or not) are not static, and neither are the effect of certification on producers as well as the criteria for being certified. E.g. it is expected that GHG emissions are further reduced in the future as a larger share of especially certified palm oil mills will install biogas capture in the palm oil mill effluent (POME) treatment. Further, new RSPO criteria on no establishment of new oil palm on peat and no deforestation of high conservation value (HCV) land are expected to lead to lower the share of oil palm cultivation on peat and to higher shares of landbank set-aside as nature conservation.

Therefore, it is highly relevant to follow the development over time.

In additional to temporal differences in results, different countries and type of growers (estates and smallholders) will also have an influence on the impact of palm oil production. It is important to trace such differences in order to learn about the potential for improvement options in different producer segments.

Palm oil using companies are currently showcasing their contribution to GHG reductions due to their commitments of buying RSPO certified palm oil. They do this by using the results of our first crowdfunded project on the impact of RSPO certified palm oil for Indonesia and Malaysia in 2016. As the impact of RSPO certified versus non-certified palm oil is not static, it is important to consistently track the developments to make correct claims.

The solution

Become a partner of this project and contribute to the development of the next life cycle assessment (LCA) comparing RSPO certified palm oil to non-certified palm oil where results are tracked over time, per country and per type of grower (estates and smallholders).

The features of the project are:

Why this is needed

Deliverables

Timeline

The project was officially launched on 6th November 2019 with a platform presentation at the RSPO RT2019 conference in Bangkok. A scientific paper documenting the outcomes of the study will be submitted to a peer reviewed scientific journal in 2024.

Become a member

Joining the new crowdfunded project will grant you access to all data and results, and you have access to influence the scope of the project.

The price of subscription is a one-time amount at 3,500 €. The funds from new subscriptions will be used to expand the scope of the project. For additional 2,000 € the results for a specific palm oil mill and its supply-base will be calculated and provided in a small report, including a comparison with the results of the main study.

For subscription (or questions), please contact us. To go to the club click here.

Outreach of the finalized crowdfunded project 2016-2019

Members of the finalised crowdfunded project 2016-2019

Extended abstract (below) and slides available here.

Abstract

Land demand is driven by an increasing population and changing consumption patterns. When land is required Land Use Changes (LUC) are triggered, causing several environmental and social impacts. Particularly topical is the assessment of indirect LUC effects. Several methodological approaches have been proposed for carrying out the assessment. In this paper we classified LUC models for Life Cycle Assessment (LCA) applications into three main categories: Economic, Causal–Descriptive and Normative models. Six models were selected as representative of these three categories and compared according to fifteen criteria covering: modeling framework, impact categories assessed and model transparency. The results show that, progresses have been made in the Economic General Equilibrium Models and the Causal–Descriptive Models compared. Causal–Descriptive models appear more suitable for long-term assessments in the LCA context while the compared economic models are more suitable for short/medium-term assessments of LUC consequences. As LUC dynamics involve interdisciplinary knowledge, a combination of economic, biophysical and statistical data is however required to achieve a robust assessment of complex LUC dynamics.

There is still considerable scope for improving current LUC models. In particular, there is room for improving precision of data, identification of marginal land and inclusion of a broader range of impact categories. Current models mainly focus on GHG emission-related impacts and rarely on other environmental impacts such as nutrient leaching, biodiversity impacts and water resource depletion. Socio-economic analyses of LUC patterns are currently excluded from LCA analysis, preventing a holistic assessment of land occupation impacts.

Preface

This report is carried out by Jannick Schmidt (2.-0 LCA consultants, Denmark) for United Plantations Berhad (Teluk Intan, Malaysia). The study includes data collection and calculation of LCA results for United Plantations Berhad’s palm oil production 2004-2016. The study was undertaken during the period January to February 2017. The current report updates results of a series of previous studies to also including 2016, and it summarises the main findings of a detailed life cycle assessment report of palm oil production at United Plantations 2004-2016:   Schmidt (2017), Life cycle assessment of Palm Oil at United plantations Berhad 2017, Results for 2004-2016. United Plantations Berhad, Teluk Intan, Malaysia.

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