Data driven sustainable food purchasing

Clayton Heinrich Mineral and Energy Economy Research Institute of the Polish Academy of Sciences

Instytut Gospodarki Surowcami Mineralnymi i Energią Polskiej Akademii Nauk November 21, 2014

Data Driven Sustainable Food Purchasing

An Economic Input-Output Life Cycle Assessment case study applying the Comprehensive Environmental Data Archive (CEDA)

!  Background !  About Me !  About CEDA !  About the Bren School

! Data Driven Sustainable Food Purchasing !  Thesis Group !  Client !  Problem !  Data !  Methods & Analysis (CEDA) !  Discussion & Conclusions

! Discussion

Agenda MEERI Visit - 21.11.2014!

Background About Me: Clayton Heinrich

!  Master of Science, Environmental Science and Management !  University of California, Santa Barbara - Bren School of Environmental Science & Management

!  Bachelor of Science, Chemistry / Food Science & Human Nutrition !  University of Illinois at Urbana-Champaign

!  Research & Development Specialist !  NOW Foods

!  Singer / Songwriter Musician !  www.claytonheinrich.com

!  Proud resident of Wrocław until March, 2015 ☺

MEERI Visit - 21.11.2014!

About CEDA Background

!  Comprehensive Environmental Data Archive (CEDA) !  Developed by Sangwon Suh, PhD

!  Economic input-output life cycle assessment tool used to quantify environmental impacts of different industrial processes

!  Multiple functions !  Suite of indicator results !  Input Contribution tool

!  Output Contribution tool

!  Diverse applications !  Carbon footprinting, water consumption, other emissions

!  More information at: http://iersweb.com/services/ceda/


Background

!  Master of Environmental Science and Management

!  2 year program !  Integrates science,

management, law, economics, policy

!  Group Project, capstone work that serves as Master’s thesis

About the Bren School MEERI Visit - 21.11.2014!

Thesis Group Dustin Merback BA, Environmental Science and Policy Focus: Resource Optimization

Clayton Heinrich BS, Chemistry, Food Science and Human Nutrition Focus: Corporate Sustainability

Katie Filippini BS, Biology and Earth Sciences Focus: Conservation Planning

Hannah Tillmann BS, Animal Science, Field Biology Focus: Corporate Sustainability

Jason Huffine BA, Communication Studies, Spanish, Environmental Systems Focus: Corporate Sustainability

Harish Prather BA, Business/Managerial Economics Focus: Energy and Climate


Google, Inc.

! Internet Search Engine & Online Advertising

! Annual Revenue - $50 Billion (2012)

! 70 Offices Globally ! Great Employee

Benefits

Client MEERI Visit - 21.11.2014!

Employee Benefits

Free Employee Food Program !  Breakfast, lunch, dinner, and snacks !  Available to all employees, contractors, and vendors

!

Client

Source: WebProNews Source: Pittsburgh City Paper


Corporate Social Responsibility

Commitment to the Environment ! Renewable energy

investments ! Data centers ! Products ! Food program?

Client

Source: GetSolar.com


Problem Statement

Google wanted to understand: !  !  climate change and

!  water consumption

impacts of food purchases, and begin a data-driven approach to sustainable food purchasing

Problem MEERI Visit - 21.11.2014!

Problem Environmental Impacts of Agriculture

!

Global Warming (26%) Water Consumption (70%)

Contribution to global impacts:


Population

Wealth

2x Global Food Demand 2x Environmental Impact

Problem Growing World Food Demand


Data Crunchtime!

I"N"F"O"R"M"A"T"I"O"N"""S"Y"S"T"E"M"S"

Google HQ Purchasing Data

!  April-June, 2013

!  58 Google micro-categories

!  3,500 unique SKUs

!  22,000 lines

!  $ Millions spent quarterly


Data Project Scope

Phase Criteria

! Homogenous ! Minimally Processed ! Regional Variability ! Relevant Environmental Impacts

!


Data Project Scope

PHASE PHASE 1 2

Phase Criteria

! Homogenous

! Minimally Processed

! Regional Variability

! Relevant Environmental Impacts

!


Process Overview Food Items Primary Inputs All Upstream Inputs Purchaser

Methods & Analysis MEERI Visit - 21.11.2014!





Actionable Info

Food Categories

Primary Inputs

All Upstream Inputs

Life Cycle Impact

Assessment

Input Contribution

Analysis

Sustainable Food

Sourcing

Methods & Analysis Process Overview

Water Stress Index

Output Contribution

Analysis


Actionable Info

Food Categories

Primary Inputs

All Upstream Inputs

Life Cycle Impact

Assessment

Input Contribution

Analysis

Sustainable Food

Sourcing

Methods & Analysis Life Cycle Impact Assessment

Water Stress Index

Output Contribution

Analysis


Economic Input-Output Life Cycle Assessment

!  If you know how much you spent on an item you can quantify the environmental impacts

Environmental Impact Based on Economic Flows

!  Screening of large data sets !  Multiple tools exist !

Methods & Analysis Life Cycle Impact Assessment


Methods & Analysis Life Cycle Impact Assessment – CEDA

Economic Flows

Environmental Impacts

Indicator Results

Impact / $

IRGW,k = kg CO2e / $

IRWC,k = kg H2O / $

DATA SOURCE PURPOSE RESULT

(2002)

TRACI&

Comprehensive Environmental Data Archive!


Methods & Analysis Life Cycle Impact Assessment – CEDA !

Assign Census Category to Google Food Category Deflate Purchases to 2002 dollar

Calculate Environmental Impact

1

2

3

Google Food Category

2002 Annual Spending Census Category Name IRGW,beef

(kg CO2e/$) GW Impact

(ktonnes CO2e) IRWC,beef

(kg H20/$)

Water Consumption

(ktonnes H2O)

BEEF Animal (except poultry) slaughtering, rendering,

and processing 3.15 4.68 455 676


Removed!per!NDA!

Methods & Analysis Life Cycle Impact Assessment - Results

Global Warming Impact

46 ktonnes CO2e

Water Consumption

16 Mtonnes H2O

Annual Food Purchase Impact Totals

Phase 1 Phase 2

73%

27%

Phase 1 Phase 2

37%

63%


Methods & Analysis Life Cycle Impact Assessment - Results

9,000 cars

This is equivalent to

Global Warming Water Consumption

6,500

Olympic

pools


Vegetables)Fresh)Fruits)

Beef)

Pork)

Chicken)

Cheese)

Coffee)Nuts)+)Grains)

Water Consumption vs. Global Warming Impact

Relative Global Warming Impact

Actionable Info

Food Categories

Primary Inputs

All Upstream Inputs

Life Cycle Impact

Assessment

Input Contribution

Analysis

Sustainable Food

Sourcing

Methods & Analysis Input Contribution Analysis

Water Stress Index

Output Contribution

Analysis


Methods & Analysis Input Contribution Analysis !  What: Contribution analysis for primary inputs !  Why: Hotspots at farmer / processor level " scorecard !  How: CEDA - Input Contribution Analysis Tool


Methods & Analysis Input Contribution Analysis– Results

Petroleum

Fertilizer

Water

Pesticides

Wood packaging

Vegetable farming

Farming real estate

Cattle farming

Electricity

Farming support activities

All remaining (individual contribution of <1%)

11%)

7%)

7%)

8%)

11%)

17%)

31%)

Example: Vegetables Global Warming


Actionable Info

Food Categories

Primary Inputs

All Upstream Inputs

Life Cycle Impact

Assessment

Input Contribution

Analysis

Sustainable Food

Sourcing

Methods & Analysis Output Contribution Analysis

Water Stress Index

Output Contribution

Analysis


Methods & Analysis Output Contribution Analysis !  What: Contribution analysis for all inputs in supply chain !  Why: Hotspots across entire supply chain" macro strategy !  How: CEDA - Output Contribution Analysis Tool


Example: Global Warming

Methods & Analysis Output Contribution Analysis – Results

Electricity

Cattle farming

Vegetable farming

Dairy cattle farming

Grain farming


16%)

14%)

13%)

8%)8%)

41%)

Top Contributing Supply Chain Processes


Actionable Info

Food Categories

Primary Inputs

All Upstream Inputs

Life Cycle Impact

Assessment

Input Contribution

Analysis

Output Contribution

Analysis

Sustainable Food

Sourcing

Methods & Analysis Water Stress Index

Water Stress Index


Actionable Info

Food Categories

Primary Inputs

All Upstream Inputs

Life Cycle Impact

Assessment

Input Contribution

Analysis

Output Contribution

Analysis

Sustainable Food

Sourcing


Water Stress Index


Actionable Info

Food Categories

Primary Inputs

All Upstream Inputs

Life Cycle Impact

Assessment

Input Contribution

Analysis

Output Contribution

Analysis

Sustainable Food

Sourcing

Discussion Actionable Information

Water Stress Index


Discussion Key Takeaways

Hotspot Identified Strategic Action

Food Categories Benchmarking

Product Substitution

Primary Inputs Scorecard

Supply Chain Inputs Overall Perspective

Life Cycle Impact

Assessment

Input Contribution

Analysis

Output Contribution

Analysis


Discussion Assumptions & Limitations

Methodology Sensitivity Analysis

EIO LCA *Phase Criteria *Aggregation

Data


*Hydrology *Ecosystem Response


Discussion Assumptions & Limitations

Methodology Sensitivity Analysis

EIO LCA *Phase Criteria *Aggregation

Data


*Hydrology *Ecosystem Response


Actionable Info

Food Categories

Primary Inputs

All Upstream Inputs

Life Cycle Impact

Assessment

Input Contribution

Analysis

Sustainable Food

Sourcing

Water Stress Index

Conclusion

Output Contribution

Analysis


Food miles negligible

Top purchase impact: fruits +

vegetables

Key Takeaways

Large impact baseline

Relative impact decreases

quickly

Top relative impact: animal

products

Conclusion MEERI Visit - 21.11.2014!

Product substitution

Further research

Moving Forward

Supplier scorecards

Water index for sourcing

Consider other impacts

$)

Conclusion MEERI Visit - 21.11.2014!

Client Solution Conclusion

Problem !  Need for data-driven purchasing decisions to reduce

environmental impacts: climate change water consumption

Deliverables !  Baseline embodied CO2e emissions (carbon footprint)

and water consumption !  Supply chain hotspots !  State irrigation water stress index


Recap of CEDA Application Conclusion MEERI Visit - 21.11.2014!

CEDA Tool Knowledge Gained

Indicator Result Carbon Footprint Water Footprint

Input Contribution Tool Profile of Hotspot Primary Inputs

Output Contribution Tool Profile of Hotspot Supply Chain Inputs

Life Cycle Impact

Assessment

Input Contribution

Analysis

Output Contribution

Analysis

Special Thanks Conclusion

!  Sangwon Suh, PhD !  David Tilman, PhD !  Gary Libecap, PhD !  Yi Yang, PhD(c) !  Shivira Tomar, MESM !  Eric Edwards, PhD(c) !  Aubrey Dugger, PhD(c) !  Stephan Pfister, PhD

Google ! David Bennett ! Victoria Ho

Bon Appetit ! Helene York ! Charlie Liao ! Joe Dominguez


Thank you!

Questions?


Link to “Data Driven Sustainable Food Purchasing” Full Report

Appendix Data Overview

- Information management system for food service industry - Annual purchases for food program

- Comprehensive Environmental Data Archive (CEDA) - Industry specific Characterization Factors - GWP (kg CO2e / $) and WCP (kg H2O / $)

- North American Industry Classification System (NAICS) - Categories used by BEA, and CEDA

- National Oceanic and Atmospheric Administration - Precipitation (state / national)

- United States Geological Survey - Water withdrawals from human use (state / national)


Apple Farming Transport Apple

Processing Transport Grocery Store

Life Cycle Assessment

Total Impact

=5 units water

=5 units greenhouse gas

“Assessing the environmental impacts of a product throughout its entire life cycle”

Appendix MEERI Visit - 21.11.2014!

Appendix Life Cycle Impact Assessment - Results

Daily Impact of a Google Employee:

Global Warming Water Consumption

835 gal

H2O

9 kg

CO2e


Appendix


2002 Annual Spending Census Category Name GWP


(ktonne CO2e)

VEGETABLES $3,945,382 Vegetable and melon farming 1.75 6.83

BEEF $1,485,709 Animal (except poultry) slaughtering, rendering, and processing 3.15 4.68

FRESH FRUITS $2,138,852 Fruit farming 1.55 3.39

PORK $1,062,846 Animal (except poultry) slaughtering, rendering, and processing 3.15 3.35

CHICKEN $1,541,277 Poultry Processing 1.51 2.32

CHEESE $903,527 Cheese manufacturing 2.49 2.25

NUT, SEED, RICE, GRAIN, BEAN $769,921 Tree nut farming 1.50 1.86

MILK $729,370 Fluid milk and butter manufacturing 2.22 1.62

EGGS $532,869 Poultry and egg production 2.39 1.27

Coarse Analysis – Global Warming Calculations

Removed!per!NDA!


Appendix Fine Analysis – Global Warming Calculations




(ktonne CO2e)



CHICKEN $1,541,277 Poultry processing 1.51 2.32

CHEESE $903,527 Cheese manufacturing 2.49 2.25

MILK $729,370 Fluid milk and butter manufacturing 2.22 1.62


YOGURT $123,117 Fluid milk and butter manufacturing 2.22 1.09

LETTUCE $143,742 Vegetable farming 1.75 1.01

COFFEE $903,527 Coffee and tea manufacturing 1.04 0.96

Removed!per!NDA!


Appendix Coarse Analysis – Water Consumption Calculations



(kg CO2e/$)

Water Consumption

(ktonnes H2O)


CHICKEN $1,541,277 Poultry processing 1.51 502.97


TOMATO $278,351 Fruit farming 1.55 421.52

COFFEE $915,601 Coffee and tea manufacturing 1.05 408.31

STRAWBERRY $237,761 Fruit farming 1.55 360.05


LETTUCE $574,967 Vegetable farming 1.75 329.99

BANANA $217,310 Fruit farming 1.75 329.08

Removed!per!NDA!


Appendix Fine Analysis – Water Consumption Calculations



(kg CO2e/$)

Water Consumption

(ktonnes H2O)

FRESH FRUITS $2,138,852 Fruit farming 573.92 2956

VEGETABLES $3,945,382 Vegetable and melon farming 573.92 2693

BEEF $1,485,709 Animal (except poultry) slaughtering, rendering, and processing 455.00 676

NUT, SEED, RICE, GRAIN, BEAN $769,921 Tree nut farming 84.52 578

CHICKEN $1,541,277 Poultry Processing 326.33 503

PORK $1,062,846 Animal (except poultry) slaughtering, rendering, and processing 454.77 483

COFFEE $903,527 Coffee and tea manufacturing 445.94 408

EGGS $532,869 Poultry and egg production 657.23 350

JUICES $188,915 Frozen food manufacturing 368.73 279

Removed!per!NDA!


Life Cycle Impact Assessment – Phase 1 and 2

Finfish!

Shellfish!

Vegetables!

Fresh!Fruits!

Beef!

Pork!Chicken!

Cheese!

Coffee!

Beverages!

Appendix MEERI Visit - 21.11.2014!

Appendix Life Cycle Impact Assessment – Results


6%)

10%)

19%)

24%)

28%)

Appendix

Other crop farming

Vegetable farming

Fertilizer use

Cattle farming

Petroleum use

Water use

Pesticide use

Real estate

Farming support activities

Electricity


Example: Vegetables Water Consumption


Appendix

•  The right ideas Output Contribution Analysis – Explain Utility


Appendix Output Contribution Analysis – Explain Utility •  The right ideas


Example: Water Consumption

Appendix Output Contribution Analysis

Electricity

Vegetable farming

Fruit farming

Other crop farming

Grain farming


18%

17%

11%

7% 4%

46%

Top Contributing Supply Chain Processes


Appendix Limitations of EIO - LCA Indicator Results


Appendix Limitations of EIO - LCA Indicator Results


Relative Water Consumption

!  What: Water stress has regional variability; water use in one state is not equivalent to use in another state!

!  How:)

!  Why: Compare water use impacts across states!


Ws : Withdrawals (state) Wn : Withdrawals (national) Ps : Precipitation (state) Pn : Precipitation (national) Is : % Water Used for Irrigation (state)


State Irrigation Water Stress Impact

High Low

Water Availability

Values denote H2Oe Impact per 100 kg CEDA Water Consumption

State Water Stress Index Value

336

247

9

83

46 122

101

182

49

223

State Water Stress Impact Appendix MEERI Visit - 21.11.2014!

Appendix Water Stress Index - Equations

• !"#"$%#&$'#($%)'$*+)+"#"+,- +-.' ∗

65,780,000%6+"$'! %7#"$'+- %)'$*+)+"#"+,-

8 +2∗ !"#"$%8+2 ∗ 1%;( %7#"$'

1%6+"$' %7#"$' = %!"#"$%!=))6.% ;(%7#"$'.' !!• >(',=-?7#"$'%7+"ℎ?'#7#6 (#6?#. ∗

3.785%;(%7#"$'1%(#6 %7#"$' ∗ 365%?#.!1%.' C + >!='E#*$%7#"$'%7+"ℎ?'#7#6 (#6?#. ∗

3.785%;(%7#"$'1%(#6 %7#"$' ∗ 365%?#.!1%.' C = !

%","#6%7+"ℎ?'#7#6! ;(%7#"$'.' !

!!• >7+"ℎ?'#7#6! ;(%7#"$'.$#' ÷ !=))6.% ;(%7#"$'.' C ∗ 100% = %%,E%7#"$'%!=))6.%=!$?!!!• (%%,E%!"#"$%7#"$'%!=))6.%=!$? ÷ I. J. #&$'#($%%%!=))6.%=!$?) ∗ 100% =!

!"#"$%%%!=))6.%=!$%?$&+#"+,-%E',8%-#"+,-#6%#&$'#($!!!• LMNO%7#"$'%+8)#*" ∗ !"#"$%%%!=))6.%=!$%?$&+#"+,-%E',8%-#"+,-#6%#&$'#($ = '$(+,-#6+P$?%7#"$'%+8)#*"!!!• ((',=-?7#"$'%7+"ℎ?'#7#6 ÷ ","#6%7+"ℎ?'#7#6) ∗ 100% = %%(',=-?7#"$'%!ℎ#'$%,E%","#6%7#"$'%!=))6.!!!!
