What is the carbon footprint of your material handling automation?

In this article, we describe our learning path when we started analysing the environmental impacts of Konecranes Agilon® warehouse automation.

The initial thinking was that we should concentrate on energy consumption which we knew was very modest compared to industry standards. Additionally, the well thought method of implementing maintenance and repair operations using refurbished modules was considered a unique advantage from the circular economy point of view.

However, following our initial meeting with the experts, it turned out that the project was going to be much longer than expected. As of today, though we still don’t have the results, at least we know where to start and what the overall project will look like. 

Basis

Sustainability is one of the key drivers of product development today. Sustainable development is defined by the United Nations as development that fulfils the current needs without compromising the needs of future generations. In this context, sustainability covers economic growth, social inclusion, and environmental protection. Life cycle assessment (LCA) is a powerful method to target specifically environmental protection. It is a standardized and science-based method for assessing the environmental impacts of a product or a service throughout its life cycle. 

For example, it might be possible that the LCA study indicates the biggest impact to be caused by raw materials during the lifetime of a product or a service. Based on the results of the study, the company can start to seek better alternative raw materials. After they have found one, they can proceed to do the LCA again to see if the alternative is actually better for the environment. This helps to avoid sub-optimization, which could lead to even bigger environmental impacts than the original solution. Furthermore, some material choices that might be environmentally friendly in manufacturing might not last as long in operation, which can lead to an increasing need for maintenance and eventually lead to additional environmental impacts. Therefore, the solutions need to be reviewed throughout their life cycle.

Methodology

LCA is a standardized method for assessing the environmental performance of a product or a service, which consists of four phases:

1.    The goal and scope definition
2.    Life cycle inventory analysis (LCI)
3.    Life cycle impact assessment (LCIA) 
4.    Life cycle interpretation. 

The standards that set the framework for conducting an LCA are ISO 14040 and ISO 14044. In addition to these, there is also the ISO 14067 standard, which is derived from the methodology but focuses on the carbon footprint aspect. The difference between an LCA and a carbon footprint study is that an LCA usually also takes other environmental impacts into account in addition to global warming potential. For example, acidification, eutrophication, and ozone depletion are typical impact categories that the study might also consider. 

The goal and scope definition

The LCA process begins with the definition of the goal and scope. The ISO 14040 standard defines what needs to be disclosed in the study, which is presented in the table below. The purpose of this is to disclose as closely as possible all the factors that are relevant to the study. This gives the reader the background of the study as well as the viewpoint from which the study is to be analysed. 

Inventory Analysis

The second phase of the LCA is the Life Cycle Inventory Analysis (LCI). In the LCI, the product is put through its life cycle and the relevant unit processes are gathered. For each unit process, all input and output, also known as elementary flows, are collected. The elementary flows usually include energy, raw materials, other relevant inputs, and emissions, waste,  and other outputs, which will be used to define the life cycle impacts in the next phase. 

In the beginning, the experts warned us that this task would neither be easy nor quick.

We started this phase by acquiring detailed data from the Bill of Materials (BOM). In the beginning, the experts warned us that this task would neither be easy nor quick. One major reason is that long supply chains make it hard to get exact information from the mines through manufacturing to disposal. Even getting a full list of materials is sometimes almost impossible. Fortunately, Konecranes Agilon is fully designed by internal R&D, so getting the BOM data was relatively easy. 

Agilon is constructed modularly from a few main modules which are listed in the table below. In terms of equipment weight, the vast majority is steel and aluminium. Just three subcomponents constitute 93% of an average Agilon racking: uprights, shelves and cover panels. 

For each of the subcomponents, certain parameters were required to study in detail:

•    Material
•    Separate surface treatment
•    Manufacturing method
•    Weight / Pcs [kg]
•    Vendor
•    Transport method from vendor
•    Transport distance from vendor [km]
•    Raw material Vendor
•    Raw material manufacturing method

Some of the subcomponents consist of hundreds or thousands of different parts. Examples of such are computers, barcode scanners or cameras which are supplied by selected vendors. Obtaining information from the vendors related to the electrical equipment turned out to be the most challenging task. Fortunately, the best manufacturers already have made their life cycle analyses which we can use in our calculations. However, this is not the case for all manufacturers, which will have an impact on vendor selection in the future. So, for some subcomponents, we need to resort to the average figures from the data bank. This should have only a minor impact on the reliability of the analysis as there are only so many ways to manufacture copper cables or electric motors.

The inventory analysis took about three months to complete which, we heard, was very quick. The next phase of our analysis will cover matters such as transport to customer, installation, maintenance, and repair. In addition, energy consumption from customer usage will be under thorough analysis, which should take significantly less time than the BOM analysis. 

Impact Assessment 

The LCI phase is followed by a Life Cycle Impact Assessment (LCIA). In this phase, the previously acquired elementary flows are categorized under previously selected impact categories. Each impact category has its unit, for example, emissions with a global warming potential are usually categorized under kgCO₂eq. Since different LCIA methods have different characterization factors for emissions, it is crucial to disclose which LCIA method is applied. There are several commonly used methodologies such as CML2001, ReCiPe and IPCC; and the LCIA results of using different methods should not be compared directly. 

Characterization is done with factors that scale the impacts to the given unit. As an example, the ReCiPe method’s characterization factors for some emissions for GWP 100 years are shown in the table below. Overall, this method recognizes over 200 different emissions with a global warming potential. For example, each kilogram of methane has the same impact as 34 kilograms of carbon dioxide on a 100-year time scale. This similar characterization is carried out for each of the emissions in each of the impact categories.

The presented ReCiPe method has 18 midpoint indicators such as GWP, terrestrial acidification, freshwater eutrophication and water use. Through the damage pathways, these can be further grouped into endpoint indicators, three of which belong to ReCiPe: Damage to human health, Damage to ecosystem, and Damage to resource availability. Usually, however, the practitioners use the midpoint indicators. 

Interpretations

The fourth phase of an LCA study is the interpretation in which the findings from the LCI and LCIA phases are considered together to deliver results that are consistent with a set goal and scope. This frames the discussion as well as the limitations of the study to provide a conclusion and a potential recommendation. This section aims to present the result using simple and easy to understand language. For example, the so-called hot spots or key issues might be discovered here. Overall, the LCA process is an iterative process and, in this phase, the practitioner might discover something that requires revisiting in the LCI phase or the goal and scope definition. Once the study has been finished, the results are ready to be presented to the selected audience in the chosen format.

The application of the LCA methodology is increasing rapidly since it provides a comprehensive analysis of the whole supply chain aligning with increasing public awareness on the topic. Customers are requesting more sustainable solutions, which steers the producers to be more sustainable. As producers are looking for better solutions, it influences their suppliers as well, which trickles all the way to the beginning of the supply chain. Through this chain reaction, the world will become more sustainable, step by step, and the LCA is at the core of the transition for the whole product life cycle to become more sustainable. 

Konecranes is committed to sustainability in all its operations, of which Agilon is a part. The group’s commitments are published here https://investors.konecranes.com/sustainability. 

When looking for alternatives for automated material handling technology, challenge your current knowledge. Make sure to check the latest in the market: https://www.konecranes.com/agilon.

Written by

Vesa Hämetvaara

Director, Business Development, Konecranes Agilon

email: [email protected]

Jere Peltomäki

Sustainability Trainee, Tech core Sustainability and Analytics, Konecranes

Paige Nguyen 

Environmental Specialist, Tech core Sustainability and Analytics, Konecranes