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Evaluating product panels

2 Introduction to product panels

In 1998, the Danish EPA launched an experiment in introducing product panels to strengthen the involvement of market players in the Product-Oriented Environmental Initiative. The idea of establishing product panels was based on the product life cycle approach, a cornerstone of the Product-Oriented Environmental Initiative. This approach is a strategic concept for organising Denmark’s environmental initiatives. The concept springs from a need to develop an overall environmental initiative focusing on all relevant elements of product and material life cycles. In other words, the environmental impacts of products are seen from a product life cycle perspective, as shown in figure 2.1.

Figure 2.1:
Environmental impacts in a product life cycle

The aim of the product panels is to involve the various players found in a product life cycle in a binding cooperation covering a specific product area.

A discussion paper published by the Danish EPA in 1996, "En styrket produktorienteret miljøindsats" (Strengthening the Product-Oriented Environmental Initiative), was the first to propose that product panels be established. According to the subsequent report from 1998 on the Product-Oriented Environmental Initiative, consultants supported and showed an interest in the proposal to establish product panels. Therefore, the Danish EPA decided to set up the first three product panels in the areas of electronics, goods transport and textiles.

The Danish EPA selected the electronics, goods transport and textiles industries as pilot areas because these areas still stood to achieve considerable environmental improvements. Moreover, the selection of these three pilot areas would give the parties involved an opportunity to test different ways of meeting the overall framework requirements, thus providing a solid basis for gaining experience for future product panels. The electronics industry was considered a complex product area, one of its primary challenges being the unusually high level of internationalism coming from an industry boasting very high import and export rates. In part, the textiles industry was chosen because a number of projects in this area had already provided a basis of experience, and a few companies were also in the process of developing more environment-friendly textiles. The goods transport industry was selected because the Danish EPA wanted to gain product initiative experience in the field of a service industry and because goods transport contributed substantially to environmental impacts, especially through CO² emissions, air pollution and noise.

2.1 Product panel framework

Because product panels, in organisational structure and form, present a new approach in the Product-Oriented Environmental Initiative, setting out the framework has been a development task of the Danish EPA. The Agency regards product panels as an experiment to be launched with a relatively broad framework, so as not to limit its scope for development already from the start.

However, the parties involved found it important to start out with a clear framework for product panel activities. To this end, in June 1998, the Danish EPA prepared a report describing product panel framework requirements, "Udkast til funktionsbeskrivelse for Produktpaneler" (Draft functional description of product panels), and also drew up a delegation memorandum for each of the three product panels in the respective areas of electronics, goods transport and textiles.

A major problem in determining the framework has been to ensure consistency between product panel work and the objectives of the Product-Oriented Environmental Initiative, while also securing the product panels’ independence from the Danish EPA. Generally, the Agency does not want product panels to be regarded as bodies operating under the auspices of the Agency. The product panels are meant to have their own "lives", thus creating a special kind of dynamics in the cooperation between the various market players. Officially, the product panels are consulting committees.

2.1.1 Objective

According to the Danish EPA’s report from June 1998, the overall objective of establishing product panels is to promote the development and sale of relatively cleaner products in these product areas and to test and demonstrate a number of instruments in the Product-Oriented Environmental Initiative.¹ The first part of the overall objective relates to the development of cleaner products and thus aims at initiatives on the supply side, targeted at product developers, designers and producers. Promoting the sale of cleaner products aims at creating a market for environment-friendly products – marketing and sale on the supply side and demand for environment-friendly products on the consumer side (retail consumers, public-sector consumers and specialists). The third element of the overall objective suggests that product panels test and demonstrate some of the instruments used in the Product-Oriented Environmental Initiative. These include market player involvement, eco-labels, environmental declarations and information.

In its functional description, the Danish EPA also sets out a number of specific objectives for establishing product panels. Figure 2.2 outlines these objectives and expectations for related activities.

Figure 2.2:
Specific objectives of establishing product panels

Source: Oxford Research A/S, 2001.

One specific objective of establishing product panels is to create a forum for dialogue between the key players in a product area. To create a basis for drawing up action plans for the individual areas, the Danish EPA expects the product panels to prepare an overview listing all important environmental impacts as seen from a life cycle perspective for products in the product area and listing all important activities relating to the product area. The overview of important activities is to be updated on a regular basis.

An action plan must contain the following four elements: overall goals for initiatives, proposals for specific initiatives, time and activity schedules as well as identification of the need for additional funds to implement such initiatives. In other respects, the product panels are free to make proposals contributing to the fulfilment of the overall objective. Within the given area, the product panels may also draw up proposals for initiatives unimplementable by themselves. These could be proposals for initiatives to be implemented by public authorities.

The product panels are under an obligation to evaluate their initiatives regularly through annual progress reports. Furthermore, the panels must help communicate the results of initiatives to the players in the product area concerned.

2.1.2 Composition

As far as the composition of product panels goes, the functional description points out that a product panel should represent all players exerting substantial influence on the production, sale, consumption and disposal of the products in a given product area. Moreover, the panel members should have independent power of decision and possess a substantial amount of technical experience in environmental issues.

At the establishment of a product panel, members are appointed in a dialogue between the Danish EPA and the chairman of the panel in question. All product panel members are appointed for a two-year period.

2.1.3 Chairman and secretary

The Danish EPA appoints the chairman and the secretary. A non-central government person is chosen as chairman, and chairmanship duties are unpaid. A person with specialist knowledge is appointed as panel secretary, either from the Danish EPA or from a relevant knowledge centre. Specific secretarial duties in connection with product panel activities are paid as long as the product panel remains within its operating budget. For more information, see the Funding section.

2.1.4 Role of the Danish EPA in the product panel

The functional description of the product panels describes the role of the Danish EPA as: helping to organise cooperation between players (acting as a catalyst), contributing Danish EPA experience in promoting cleaner technology in the broad sense of the word, and having the responsibility for legislative and environmental-policy framework conditions in the area in question. This means that the Danish EPA is responsible for two active tasks as catalyst and technical partner and one observation task aimed at preventing product panel initiatives from falling outside the scope of legislation and the general guidelines of environmental policy. Furthermore, the Danish EPA regards its own participation in a product panel as equivalent to that of the other members.

Through their action plans, the product panels can propose the launch of new initiatives, but the Danish EPA, in its capacity as secretariat for the Danish Environmental Council for Cleaner Products, decides which initiatives and projects are to be recommended for funding under the Programme for Cleaner Products, etc. (see the Funding section below).

2.1.5 Funding

The product panels have an operating budget under the Programme for Cleaner Products, etc., to cover their expenses for specific secretarial duties, holding of meetings and preparation of progress reports and draft action plans. The operating budget also allocates funds for technical assistance, reports, etc. The annual operating budget of each product panel is about DKK 500,000.00.

For the three product areas, the Environmental Council for Cleaner Products earmarks an amount in its annual priority plans for projects in specific product areas and for industrial initiatives. In 1999, this amount accounted for 15 per cent of the entire programme’s total limit. This percentage has since increased, meaning that projects in specific product areas and industrial initiatives in 2001 accounted for 21 per cent of the programme’s total limit. It should be pointed out that another product area – building and construction – was added to the programme in 2000, as were industrial initiatives in the manufacturing industries under the specific product areas. However, the percentages confirm that the specific product areas play a prominent role in the Product-Oriented Environmental Initiative.

Through action plans submitted to the Danish EPA, the product panels can recommend that new activities and projects be launched. In addition, the product panels can choose to finance their initiatives and projects through other funds such as their own funds. Table 2.1 shows funds under the Programme for Cleaner Products, etc., spent in the specific product areas.

Table 2.1:
Funds spent in the specific product areas under the Programme for Cleaner Products, etc.

* Note: Compared to 1999, the specific product areas in 2000 and 2001 included the building and construction area as well as industrial initiatives in the manufacturing industries in addition to the electronics, goods transport and textiles areas.
** Note: Funds were transferred from this area to a campaign aimed at promoting the use of eco-labels (the textiles area was an important element in this connection).
Sources: Danish EPA: "Prioritetsplaner for Program for renere produkter m.v." (Priority plans for programme for cleaner products, etc.). 1999, 2000 and 2001.

The table shows that, during their first full year of existence in 1999, the product panels occasioned the launch of many new projects and initiatives in the three product areas. Markedly fewer projects and initiatives were started in 2000, however, one reason being that several of the projects for which funds were allocated in 1999 continued into 2000. Moreover, funds were transferred from the specific product areas to finance a large-scale campaign for eco-labels, where the textiles area was an important element.

2.2 Evaluation purpose

The three product panels (electronics, goods transport and textiles) have now been pilot product areas for more than two years. Consequently, it is now time to collect experience and knowledge that will help decide where the product panel concept requires adjustment and to assess the possibilities and limitations of the concept as a new tool for promoting the Product-Oriented Environmental Initiative.

In 2000, a fourth product panel was established in the building and construction area. This evaluation report does not include this product panel since it has only existed for a brief period of time.

The evaluation report is divided into three sections, respectively aiming at taking stock, analysing the product panels in the Product-Oriented Environmental Initiative and making recommendations on the basis of a methodical discussion of the product panel concept.

The first section, chapter 3, presents the product panels as case stories. At the end, the chapter assesses whether the product panels live up to the formal requirements and objectives set out by the Danish EPA in the functional description.

The second section, chapter 4, deals with the product panels as tools in the Product-Oriented Environmental Initiative. The chapter delves into the innovative nature of the product panels and their interaction with other elements in the Programme for Cleaner Products, etc.

The third section, chapter 5, contains a cross-cutting, methodical discussion of the product panel concept. On the basis of this discussion, the chapter proposes a number of recommendations concerning the future of the product panels.

2.3 Evaluation method

This report relies mainly on qualitative methods to evaluate the product panels as the evaluation largely focuses on the working methods of the panels as well as organisational and procedural problems. At the same time, the number of panel members is relatively low, which makes it relevant to use qualitative rather than quantitative methods such as extensive questionnaire studies.

2.3.1 Collecting data

The product panel analysis started with desk-based research of existing written material regarding:

	the background and scope of the product panels
	the work undertaken by the individual product panels, such as meeting minutes, member lists, action plans, progress reports, etc.
	the role of the product panels in the overall environmental initiatives for cleaner products
	the Programme for Cleaner Products, etc.

Furthermore, a total of twenty personal interviews were held with product panel members and representatives of the Danish EPA and the Environmental Council for Cleaner Products. The interviews were conducted on the basis of a structured questionnaire guide, and specific panel members were selected for the purpose of covering a wide range of the different interests represented in the product panels.

In addition to the twenty personal interviews, the evaluation team also conducted an e-mail survey among the remaining panel members. This survey focused on ten core questions pertaining to the evaluation of the product panels. Appendix A contains a list of all persons interviewed.

2.3.2 Quality assurance

A reference group consisting of representatives of the Danish EPA was set up to follow the process of evaluating the product panels. During the evaluation process, the reference group had close contact with the project team at Oxford Research A/S.

At the end of the evaluation, a round-table discussion was held with a number of representatives from the three product panels, the Danish EPA and the Environmental Council for Cleaner Products. Aimed at ensuring the quality of the evaluation, this round-table discussion afforded the project members an opportunity to remove any factual uncertainty and to test the conclusions and recommendations made in the evaluation report.