Raw material criticality assessment as a complement to environmental life cycle assessment: Examining methods for product‐level supply risk assessment

Abstract

Summary The diversity of raw materials used in modern products, compounded by the risk of supply disruptions—due to uneven geological distribution of resources, along with socioeconomic factors like production concentration and political (in)stability of raw material producing countries—has drawn attention to the subject of raw material “criticality.” In this article, we review the state of the art regarding the integration of criticality assessment, herein termed “product‐level supply risk assessment,” as a complement to environmental life cycle assessment. We describe and compare three methods explicitly developed for this purpose—Geopolitical Supply Risk (GeoPolRisk), Economic Scarcity Potential (ESP), and the Integrated Method to Assess Resource Efficiency (ESSENZ)—based on a set of criteria including considerations of data sources, uncertainties, and other contentious methodological aspects. We test the methods on a case study of a European‐manufactured electric vehicle, and conclude with guidance for appropriate application and interpretation, along with opportunities for further methodological development. Although the GeoPolRisk, ESP, and ESSENZ methods have several limitations, they can be useful for preliminary assessments of the potential impacts of raw material supply risks on a product system (i.e., “outside‐in” impacts) alongside the impacts of a product system on the environment (i.e., “inside‐out” impacts). Care is needed to not overlook critical raw materials used in small amounts but nonetheless important to product functionality. Further methodological development could address regional and firm‐level supply risks, multiple supply‐chain stages, and material recycling, while improving coverage of supply risk characterization factors.

Mineral resources in life cycle impact assessment: part II – recommendations on application-dependent use of existing methods and on future method development needs

“…The method also incorporates a "product-level importance" factor that effectively "cancels out" the magnitude of inventory flows. The term "inventory flows" is used to encompass both elementary and intermediate flowsas the total supply risk associated with a product system is a function of its entire supply chain (for further explanation see (Cimprich et al 2019)).…”

“…The differences in the LCIA results when using the GeoPolRisk and ESSENZ methods can be explained by the broader range of supply risk aspects considered in the ESSENZ method, the different coverage of inventory flows, the "canceling out" of mineral resource amounts in the GeoPolRisk method, and the spatial resolution of the CFs assessing the supply risk of European imports (GeoPolRisk) or global production (ESSENZ). Further discussion of the case study, results obtained by the supply risk methods is provided in a separate publication by Cimprich et al (2019).…”

Criticality Assessment of the Life Cycle of Passenger Vehicles Produced in China

“…And so far, none with the viewpoint of Chi((nese BEVs and ICEVs production [ 31 ]. Criticality refers to the “risk” of supply disruption (or “supply risk”) together with potential (socio-economic) impacts of supply disruption (“vulnerability to supply disruption”), sometimes including other dimensions such as environmental and social aspects [ 32 ].…”

Analyzing Changes in Supply Risks for Abiotic Resources over Time with the ESSENZ Method—A Data Update and Critical Reflection

“…With abiotic resources being vital inputs for a stable economy and society, their supply disruption has been perceived as being particularly relevant [4,5]. Several methods were developed in the past, applying a variety of indicators and approaches to determine potential supply risks of abiotic resources on a micro (product) level [6] (e.g., the. Economic Resource Scarcity Potential [7], the ESSENZ method [8] (comprehensive method to measure and assess resource efficiency of products in the context of sustainable development) and the GeoPolRisk method [9,10]), on a meso (company) level (e.g., [11][12][13]) as well as on a macro (country) level (e.g., [14][15][16]).…”

“…Economic Resource Scarcity Potential [7], the ESSENZ method [8] (comprehensive method to measure and assess resource efficiency of products in the context of sustainable development) and the GeoPolRisk method [9,10]), on a meso (company) level (e.g., [11][12][13]) as well as on a macro (country) level (e.g., [14][15][16]). Within the UNEP/SETAC (United Nations Environment Programme/Society of Environmental Toxicology and Chemistry) Task Force "mineral resources" the topic of measuring potential supply risk in the context of life cycle assessment (LCA) was also discussed [17] and recommendations for methods and future method developments are provided [6].…”