Supplementary material SM2: Complete assessment of OLCA and SLCA and proposals for the conceptual framework of SOLCA

Social organizational LCA (SOLCA) – a new approach for implementing social LCA

Julia Martínez-Blanco, Annekatrin Lehmann, Ya-Ju Chang, Matthias Finkbeiner

This table is mainly based on the following sources of data:

·  For SLCA: sections 3.4 and 4 of the UNEP/SETAC product SLCA guidelines (UNEP/SETAC 2009).

·  For OLCA: ISO/TS 14072 (ISO 2014) and section 3 and Annex D of the UNEP/SETAC OLCA guidance (UNEP/SETAC 2015).

Definition for some of the concepts used in the table (UNEP/SETAC 2015):

·  Consolidation method: Approach to be selected by the organization in setting the reporting organization, for assessing the inputs, outputs and potential environmental impacts of the activities associated with the organization. It represents the structure of the organization and its relationships with other organizations. Note: three distinct approaches are used, the operational control, financial control, or the equity share.

·  Direct activities/impacts: From sites that are owned or controlled by the reporting organization

·  Generic data: Refers to data that is not directly collected, measured, or estimated, but rather sourced from a third-party LCI database or other sources.

·  Indirect activities/impacts: Are consequence of the operations of the reporting organization but occur upstream and downstream the value chain.

·  Specific data: Refers to directly measured or collected data representative of activities at a specific facility or set of facilities.

·  Supporting activities: Activities of an organization that do not directly contribute to product production, but are necessary for running the organization (e.g., business travel, leased assets, heating, cleaning services, managerial offices).

Most of the elements of a LCA are described here for the existing methodologies, SLCA and OLCA, and for the new approach, SOLCA. For those issues not addressed here, the requirements to consider are supposed to be equivalent to the ones for product LCA, it means for the ones specified in ISO 14040 and ISO 14044 (ISO 2006a; ISO 2006b).

Step of the life cycle / Methodology
SLCA / OLCA / New SOLCA
General / 1.  High importance of the location of the organization, suppliers and other partners of the value chain.
2.  Stakeholders should be involved in the definition of the goal and scope of the study and during data collection.
3.  Impacts are mainly due to the organization’s behavior (strongly affected by the country situation). / 1.  Site information is recommended. Location-specific generic data (e.g., electricity mix) is useful for refinement of the results or when region-specific impact methods are used.
2.  Stakeholders may be approached during data collection.
3.  Impacts are mainly due to the product portfolio and type of processes. / 1.  As in SLCA
2.  As in SLCA
3.  Impacts are mainly due to the behavior of the several organizations involved in the provision of the product portfolio.
Goal and scope
Goals / 1.  The ultimate goal is to promote improvement of social conditions and of the overall socio-economic performance of a product throughout its life cycle for all of its stakeholders.
2.  The results may be used in comparative assertions intended to be disclosed to the public. / 1.  The ultimate goal is to identify and reduce environmental impacts of an organization and its value chain.
2.  The results are not intended to be used in comparative assertions intended to be disclosed to the public, but for internal decision making, performance tracking, communication, etc. / 1.  The ultimate goal is to promote improvement of social conditions and of the overall socio-economic performance of an organization and its value chain and for all of its stakeholders.
2.  As in OLCA
Object of study / Individual product (good or service) / Organization (sole-trader, company, corporation, firm, enterprise, authority, partnership, charity or institution, etc., or part or combination thereof, whether incorporated or not, public or private) / As in OLCA
Unit of analysis. General / It is defined by the functional unit and the reference flow. / The concept used by ISO/TS 14072 is the reporting unit, which integrates the two items considered in the OLCA Guidance: the reporting organization and the reporting flow. / The elements reporting organization and reporting flow are used here, following the OLCA Guidance.
Unit of analysis. Description / Functional unit is the quantified performance of a product system for use as a reference unit (ISO 2006b). / Reporting organization: The organization under study to be used as a unit of analysis. Includes:
·  Subject of study: If properly justified, the application of OLCA to segments or selected parts of an organization is possible. The subset selected should represent a clear unit of operation (e.g., business divisions, brands, regions or facilities).
·  Consolidation method: It assists in representing the structure of the organization and its relationships with other organizations, using one of the three methods – financial control, operational control or equity share approaches – to consolidate its units (e.g., facilities).
·  Reference period: e.g., 1 year. / Reporting organization: Same definition and elements as for OLCA with some specifications. As SOLCA measures the behavior of the organization; in general, it should be irrelevant where the impacts occur (in the subject assessed or in other parts of the organization).
·  Subject of study: However, if properly justified, the application of SOLCA to segments or selected parts of an organization is possible.
·  Consolidation method: Difficulties during the application may be encountered for equity share, which is defined in accordance to the share of equity interest of the organization over each unit. The attributes or characteristics of the units cannot be distributed according to equity share, as they are inherent to the unit.
·  Reference period: Regarding semi-quantitative and qualitative indicators (for example attribute indicators), while it is not possible to express them quantitatively per reference period, they could be expressed as valid for the reference period.
Unit of analysis. Quantification / Reference flow is a measure of the outputs from processes in a given product system required to fulfil the function expressed by the functional unit (ISO 2006b). / Reporting flow is a measure of the outputs from the reporting organization during the reference period. / Reporting flow: Suggestion to express it in non-physical terms: economic revenue or number of employees, or combination of those. It is unlikely that changes in the product portfolio affect social impacts: More important than identifying the product portfolio, is defining the changes in the network of suppliers and other partners involved (system boundary). However, it should be noted, that a few social impacts can be related also to the product itself, which means that a change in the type of product may affect those social indicators.
System boundary. Scope / 1.  When product or intermediate product flows cross the system boundary, the associated elementary flows cannot be considered, because generic databases that model processes with generic social data do not currently exist.
2.  Although it was not used in the SLCA Guidelines, the concept of direct and indirect (impacts) may also be theoretically used for SLCA.
3.  According to ISO 14044, cradle-to-grave approach is preferred, although cradle-to-gate may be considered if properly justified. No additional recommendation was found in the SLCA Guidelines, apart from the acknowledgement that including use phase may be challenging. / 1.  Thanks to the existence of product LCA generic databases, the elementary flows associated to a product or intermediate product can usually be considered.
2.  Uses the concept of direct and indirect activities..
3.  Downstream activities should be included if products directly consume energy or generate emissions during use phase or indirectly consume energy or cause emissions during use. If the organization has no influence on the use and end-of life stage of its products, it may select the cradle-to-gate perspective. / 1.  As for SLCA
2.  Use of the concept of direct and indirect activities.
3.  If the organization has no influence on the use and end-of life stage of its products, a cradle-to-gate perspective might be adopted.
System boundary. Cut-off / Those processes or activities deemed insignificant may be cut-off. First option to define the significance is according to social risks (generic social data). Other criteria: added value, worker hours, other activity variables, or influence. Physical criteria may have little importance here. / Those processes or activities deemed insignificant may be cut-off. First option to define the significance is according to environmental impacts. Other criteria: mass or energy, added value, closeness, influence, etc. / As for SLCA
System boundary. Offset / - / Offsetting projects are not supported by the Guidance and shall not be aggregated with the final results. / As for OLCA
Selection of impact categories / 1.  A fixed list of indicators does not exist, but a very long list of subcategories and related issues is proposed. High variability on the indicators and issues considered between studies.
2.  Theoretically, justification should be presented when a subcategory is not included in the study.
3.  Selection according to (they are complementary):
·  Top-down approach: broad social and socio-economic issues of interest.
·  Bottom-up approach: local level issues and their relative importance, according to stakeholders. / 1.  List of about 10-20 available indicators, not all are always assessed, but there are at least 5 that are usually considered when an environmental multi-impact approach is considered.
2.  It shall reflect a comprehensive set of environmental issues related to the system being studied. A default list of impact categories does not exist.
3.  Selection according to one or more of the following criteria: they were identified as hotspots in previous pilot or product assessments; they are the most relevant for the sector; they are required by regulations; they are recommended by voluntary reporting; they were already assessed at the on-site level; etc. / 1.  As for SLCA
2.  As for SLCA
3.  As for SLCA. Criteria in OLCA may also interact.
Life cycle inventory
Identify data that needs to be collected (based on system boundary) / 1.  It is not the activity or process what causes most of the impacts, but the organization’s behavior, therefore, inputs and outputs of the processes and activities are only used to identify the involved organizations, locations and stakeholders.
2.  The concept of elementary flow is mentioned as part of the inventory of SLCA. However, it is not the main element of the inventory in SLCA and not further referred to.
3.  No list proposed.
4.  Supporting activities are in practice not considered by product (environmental or social) LCA. / 1.  Direct and indirect processes and activities are the source of impact, due to the linked resource use and emissions (inputs and outputs), and should be identified along the life cycle. Any additional information regarding location, organization or stakeholders may support the refinement of the results.
2.  Elementary flows (in mass, energy or volume units) are collected in the inventory.
3.  A list of direct and indirect activities is proposed and others can be added.
4.  OLCA studies should consider supporting activities. / 1.  As for SLCA
2.  As for SLCA
3.  The list of indirect activities proposed for OLCA may be useful to identify the organizations involved in the value chain. The list of direct activities is not relevant here, as it was defined in OLCA according to the activities that have associated resource use or emissions.
4.  As for OLCA
Type of data / 1.  Social information on product- or organization-related aspects. Includes qualitative, quantitative and semi-quantitative data, even subjective data.
2.  Social generic data is usually at the country or sector level. Many extrapolations.
3.  Social specific data is usually collected at the organization or facility level. / 1.  Mostly physical quantities (resource use and emissions, intermediate products) related to production, use and disposal.
2.  Environmental generic data at the product level. Environmental LCA generic data exists (in databases).
3.  Environmental specific data collected at the organization or facility level and expressed per output unit. / 1.  Social information on organization-related aspects. Includes qualitative, quantitative and semi-quantitative data, even subjective data.
2.  As for SLCA
3.  As for SLCA
Prioritization of data collection / During data collection, the use of specific data for the product assessed is expected, at least for the identified hotspots.
Social hotspot analysis is particularly recommended in SLCA. Social hotspot analysis should be performed according to social risks (generic social data). / Specific data should be used for direct activities. The use of generic or extrapolated data is accepted for indirect activities, particularly in big organizations (broad portfolios).
When it is necessary to prioritize data collection efforts, decision on the type of data used (generic or specific) should use the same criteria as for cut-off. / Specific data should be used for direct activities, at least for the identified hotspots. The use of generic or extrapolated data may be used for indirect activities.
Hotspot analysis is also an option in SOLCA. Or prioritize data collection efforts according to the criteria set for cut-off.
Data collection approach / 1.  Data collection techniques for specific data: auditing enterprise documentation (e.g. payrolls, management systems), auditing of documentation of authorities and NGOs, participative methodologies, directed and semi-directed interviews, focus group, questionnaires and surveys, etc.
2.  Irrelevance of mass balances.
3.  Data collection is suggested at the facility level. / 1.  Data collection techniques for specific data: auditing enterprise documentation (e.g. payrolls, management systems), auditing of documentation of authorities and NGOs, measurements, mass balance or stoichiometry, etc.
2.  Mass balances are relevant.
3.  Data collection can be performed with the bottom-up (at the product level) or the top-down (at the organization or facility level) approaches. / 1.  As for SLCA.
2.  As for SLCA
3.  Bottom-up approach is not an option: many social impacts cannot be expressed per product. The best option is the collection of the data at the organization or facility level (or larger levels, sector/country, etc. for generic data).