WO1998011493A1

WO1998011493A1 - Method and means for calculation of ecological cost of products

Info

Publication number: WO1998011493A1
Application number: PCT/NZ1997/000115
Authority: WO
Inventors: Branton Kenton
Original assignee: Trucost Management Ltd.
Priority date: 1996-09-10
Filing date: 1997-09-10
Publication date: 1998-03-19
Also published as: AU4403897A

Abstract

A computer controlled process is provided for quantifying the consumption of ecological capital in producing any predetermined product. The consumption of ecological capital is determined by whether or not the substances used in the manufacturing of that product satisfies three (or four) conditions of ecological sustainability (2) in respect of the production and use of that product. Ecological sustainability is determined by the satisfaction of three or four predetermined conditions which apply to the manufacture and use of all products. The process is computer controlled by an algorithm which ascertains the physical substances used (10) and incorporates the conditions of ecological sustainability (2, 3, 4). Additional steps (5, 6) permit the quantification of the ecological cost of the consumption of ecological capital. The process and the two associated databases of information are able to be stored and used in a distributed electronic manner with remote accessing of the second data base for the quantification of ecological cost.

Description

TITLE: METHOD AND MEANS FOR CALCULATION OF ECOLOGICAL COST OF

PRODUCTS Field of the invention

The present invention relates to a method for commercial quantification of the ecological capital cost consumed by commercial activity in the methods and production of material products. More particularly the present invention relates to a method of assessment of a financial cost for any product based on the cost of the restoration of the ecological capital that was consumed in the making of that product.

Background of the Invention

The consumption of ecological capital can be a cost to a business but at present there are few accurate methods or processes by which such a cost can be quantified Little has been done on the evaluation of financial savings made to a commercial operation through the effective use of ecological capital or product design aimed to reduce use of ecological capital Nevertheless, such factors are requiring an increasingly necessary amount of time, requiring an objective basis of comparison between ecological capital consumed through the production of products and actual direct financial costs to companies, thus enabling them to increase their market by demonstrating an ecological responsibility for their products by comparing them with their competitors. Also there has been little done on developing an objective basis or standard for the analysis of the cost of restoration of the environment Environmental impact reports are generally prepared on an individual basis with the boundaries being arbitrarily drawn for each report. This makes the comparative use of such reports limited Other approaches to the calculation of environmental impact in production fail because the complex interaction between physical substances in the ecosystem is insufficiently understood and insufficiently determmable.

An object of the present invention is to avoid this complexity, by using a different methodology in the quantification of consumption of ecological capital, as opposed to an analysis of the environmental impact of a product.

A further object of the present invention is the provision of a method of identifying, given the conditions on earth that are required for ecological sustainability, the cost of restoring ecological sustainability and deriving an ecological cost, for any given product A further object of the present invention is the provision of means for the storage of data necessary for the calculation of the consumption of ecological capital and the ecological cost for any given product. A still further object of the present invention is the provision of a method which can calculate the amount of ecological capital consumed and the ecological cost for any given product quickly and "on demand".

Ecological sustainability may be determined by the satisfaction of three system conditions. These are: firstly, that substances from the earth's crust must not systematically increase in the ecosphere ("condition one"); secondly, that substances produced by society must not systematically increase in the ecosphere ("condition two"); and thirdly, that the physical basis for the productivity and diversity of nature must not be systematically diminished ("condition three"). For the purposes of this specification, "ecological cost" is defined as the cost, in respect of any one product, of restoring the ecology and of satisfying the three conditions of ecological sustainability in respect of the production of that product. The "ecological capital" of a product is defined in terms of the materials used in making a product and the quantities of materials used that violate the three system conditions of ecological sustainability. The "financial cost" of the ecological capital is the cost of the materials that consume ecological capital in the production of the product.

Optionally, an additional, fourth condition of ecological sustainability may also be added, namely that fair and efficient use of resources must be made with respect to meeting human needs. For the purposes of this specification the time taken in the manufacture of products is taken to be zero.

Summary of the Invention

The present invention provides a computer controlled process for the determination of the amount of ecological capital consumed in producing a product, said method, in respect of any one product, including:

(a) providing one or more first data bases of information including categories of information, each of which includes data on at least one product as follows: data pertaining to determining the physical substances used in the manufacture of said one product; data on said physical substances and their properties (said properties including a chemical analysis) used in the manufacture of said one product; data on all physical substances discharged in the manufacture of each product, wherein: said substances include energy expressed as the physical substances taken to generate the energy; data pertaining to the plurality of physical substances (including energy) used in the distribution of said product; and wherein each said first data base is stored in memory means in an electronic medium;

(b) providing an algorithm to perform the following operations, said algorithm including three system conditions:

(i) that substances from the earth's crust must not systematically increase in the ecosphere ("condition one"); (ii) that substances produced by society must not systematically increase in the ecosphere ("condition two"); and

(iii) that the physical basis for the productivity and diversity of nature must not be systematically diminished ("condition three"); and

(c) providing appropriate programming instructions, in accordance with the algorithm, for the computer to carry out the steps of:

(i) in respect of said product, successively assessing each input physical substance used in the manufacture of said product against each system condition one and three;

(ii) in respect of said product, successively assessing each output physical substance used in the manufacture of said product against system condition two; (iii) in respect of said product, successively assessing each physical substance used in the distribution of said product against the system conditions one, two and three, in the same manner as above; wherein the sum of the successive assessments results in a quantitative value for the ecological capital consumed in respect of the production of said one product; whereby said instructions and algorithm are operated in a processing means connected to the or each memory means; and (d) said value (for the ecological capital) is provided through one or more outlet media.

Optionally, data on more than one product may be stored in one said first data base. Optionally also more than one said first data base includes data on the same product. Further, each said first data base may be stored electronically in a distributed manner and accessed remotely by a user.

The above process further includes a computer controlled process for the determination of the ecological cost of restoration of the environment in respect of each product, said steps being: evaluating the amount of ecological capital consumed, as defined above, and including the additional steps of: under step (a) incorporating into a second data base data pertaining to the restoration cost of each said input physical substance; and under step (c) adding the following two steps: (iv) for each of the above assessments in which the system condition is not met, determining the quantity of each input physical substance present in said product and then successively calculating a cost for the restoration of that physical substance within the ecosystem, to the point where the system condition in question is then met;

(v) for said input product ascertaining the quantity of the product required and summing up the restoration cost for each substance for which a restoration cost is calculated, to produce a cost value for the ecological cost of the said product; wherein said second data base is accessible remotely by users of each said first data base.

Preferably, the second data base, which is stored in an electronic medium, is accessed remotely by all users of each first data base. Preferably also, the second data base is in a form that allows for constant updating by a plurality of users so that the costings and information stored therein is as accurate as possible.

Brief Description of the Drawing

By way of example only, a preferred embodiment of the present invention is described in detail with reference to the accompanying drawings, in which:- Fig. 1 is a diagrammatic representation of a flow chart demonstrating the operation of the algorithm in respect of assessment of the ecological cost of consumption of ecological capital in respect of the production of 1 kg of iron.

Detailed Description of the Invention

Example 1

A example of the preferred embodiment of the present invention is the example of the manufacture of soap from coal. The properties of the chemical substances in the coal (or the particular coal in question) are ascertained if they are not already available in a first data base. These substances are then entered into a first data base if not already present. All other physical substances used in the manufacture of the soap are ascertained and entered into the first data base if not already listed.

The type and physical substance(s) used to release the energy used is also entered into the first data base. If so desired, the chemicals or substances can be listed in a plurality of alternative ways, so that any one substance can be located and identified either under its common name, correct chemical name, any standard trade mark, by the makeup of elements in the substance, etc.

The manner in which energy is categorised is via an analysis of the physical substances used in the generation of the energy and quantified, for example in tonnes of coal.

Additionally, the first data base also includes the physical substances used in the distribution of the manufactured product - for example the fuel used in the physical distribution of the soap. Optionally the second data base includes actual cost effective examples of actual ecological restoration of some or all of the physical substances in coal, depending on the availability of such information. If so desired, the restorative cost is determined by evaluating the medium value of the five most cost effective examples of ecological restoration as undertaken by ecological management organisations from whom data is available within the data base. However, other cost methods may be used.

The ecological cost of the soap is derived from the combined sum of the ecological cost of all the separate physical substances each separately assessed against the above defined three system conditions. The algorithm is based on the equation: E = N(SC1 (Q $R) + N^*SC2(Q*P O ^*$R) + SC3(Q^*PI^*$R)) in which:

E = Ecological cost of product

SC = assessment against a system condition (either 0 or 1 ) Q = the quantity of the input physical substance

PI = the input physical substance P O = the physical output substance $R = restoration cost of actual examples (or medium of five) N = number of physical substances, either inputs, outputs or distribution values for the product respectively.

By successive summation for each of the physical substances where the various system conditions (as defined above) are not met, the ecological cost of the use of coal in the manufacture of soap is arrived at. Thus a total cost for the first use of the soap can be determined by adding the ecological cost to the market price of coal. The method of determining the ecological capital consumed in the manufacture of a product, or additionally the ecological cost of a product, requires a means for processing the algorithm (as described below) for the quantification of the ecological capital consumed and of the ecological cost, in addition to storage means for the first and second data bases, and an input means (e.g. keyboard) and output means (e.g. VDU screen and printer). The use of computer software on appropriate computer hardware fulfils this requirement. In practice it has been found that Windows 97 (TM,

Microsoft Corporation) and compatible products provided appropriate software for the operation of the invention. The appropriate hardware is any computer capable of running such software and of electronic connection to other remote) terminals (for example via the internet).

Example 2

Referring to Fig. 1 a diagrammatic flow chart of the present invention is thereshown, with reference to the production of ten kg of iron. Each box represents one step in the process. In the first step 10 a list of all the physical substances (including energy) used in the product of iron is compiled. Quantities and chemical formula are also compiled. If the data base on which the algorithm is operating does not have all the information, other remote first data bases may be accessed to obtain the information. The second step 2 is to ascertain, in respect of each physical substance, whether this substance has consumed any ecological capital. This is assessed against each of three or four system conditions (as set out above). If none of the system conditions are violated, then no ecological capital has been consumed (7). If the answer is yes, the next step (3) is to compile a listing of the physical substance(s), the system condition violated and the quantity of each substance. Step 4 allocates an operating cost from a first data base to the consumption of this ecological capital. Step 5 involves the accessing of the second data base to obtain the restoration cost for the ecological capital consumed by the physical substance for the quantity of that substance. Referring to the production of ten kg of iron: the system conditions which are violated are condition one (that substances from the earth's crust must not systematically increase in the ecosphere) as well as condition two and condition three in respect of the man made chemicals used in the smelting process and the land upon which the smelter is built (respectively). The financial cost of the production of ten kg of iron is (for example) $69. However the ecological cost (restoration so that none of the system conditions are violated) is $178. These two figures are compared in the final output (6).

Example 3 It is to be noted that the products for which this cost analysis is conducted need not be derived de novo from substances au naturel in the earth's ecosphere. For example, prevention of systematic accumulation of facsimile machines in the ecosphere (and thus fulfilling the first system condition in respect of this product) may be for a commercial force to initiate a buyback scheme and recycle or sell the machines or all the parts. Such action (provided no processing or manufacture/distribution was incurred in the recycling process) would fulfill all three (and the optional fourth) system conditions. Thus the ecological cost of reselling facsimile machines would be zero.

Thus any complete recycling of a product, without any material, distribution or energy input would have a zero ecological cost. If so desired, the second data base containing the information on restoration costs and of each physical substance is a data base which is stored electronically, but accessed remotely by all users of the or each first data base. With appropriate programming security, the data contained in the second data base could be constantly updated by the relevant organisation (who originally contributed the data) without the base being unavailable to other users.

If so desired, with appropriate software and computer hardware, accessing the data base for information for ecological costings can be remote and by multiple concurrent users.

Example 4

On the following sheets is a table of various aspects of the quantification of used in the determination of the answers to the questions in step 2 of Example 2 (above). Table 1

Description Level Reason Example Question

SC 1 assessed on inputs SC1 rule Any physical Iron from the Does this substances will be lithosphere used to physical extracted from the make car mirrors is substance lithosphere before their calculated by the imputed or its use amount at the time of component parts input into the value violate SCI ? chain

Lithosphenc PS's are only SC1 rule assessed for SC1 in the

Origin PM

The system defaults that SC1 rule The system defaults in elements present in the favour of the earth lithosphere are from the lithosphere

Components of lithosphenc SC1 rule The restoration price Calcium, Carbon and Any there any substancos must be entered of Lithosphenc Oxygen are the components to if there are any substances is based components of this lithosphenc on their compound Limestone (CaCO.) PS? components

SC1 assessment requires SC1 rule The system can only The restoration cost of that all composite discern what are the Coal is the cost of

Lithosphenc PS have their components if they are restoring the Carbon, components entered through listed Sulphur and other various levels of detail until components that the compounds are arrived constitute it at

Elements that are not SC1 rule The system asses Gold is an element Does this derived from the lithosphere SC1 costs only on Yet if the gold was element derive need to be tagged as Lithosphenc tagged ecosphere derived or from the

"ecosphenc elements" PSs recycled (as opposed Lithosphere? to lithosphere derived) a new PS called "eco- gold" would need to be created in the system Trees are an acceptable SC1 Trees are a medium The C0₂ from fuel Is the uptake of method of restonng SC1 in term carbon store emissions can be Carbon through relation to Carbon This falls short of SC1 calculated by the cost sustainable cntena but does of planting and forestry a cost promote the maintaining biomass effective method restoration of biomass capable of up taking of restoring

(and hopefully biothe Carbon of the fuel SC1? diversity) of SC3 through the creation of market incentives to plant trees For the overall system point of view good

The use of recycled PSs in SC1 Because there is no Waste paper, scrap Has the physical a commercial stream incurs systematic iron, tin cans, tyres substance no SC1 cost (Recycled - accumulation of the already been

PSs that have already physical substance in used in its served their intended the ecosphere - it is intended purpose - and have already there purpose? Does therefore already had their the physical

SC1 calculation made for substance come them Also they are already from the in the ecosphere therefore lithosphere or not contributing to has it been systematic accumulation ) recycled from the biosphere?

The associated PS extracted SC1 rule Until the supply chain A company is not What associated at the same time and locality back to restoration is responsible for the PSs were as a PS used in an input better quantified it is other rock and mineral extracted from into the production moment difficult to know what extracted at the same the lithosphere have no ecological cost associated compounds time that the iron is at the same time were extracted at the has purchased for its as the PS used same time production moment in the production was extracted moment?

SC2 violation is assessed SC2 rule Synthetic materials will Araldite may be an Does this on outputs only accumulate after input into a furniture physical they have been making business but it substance produced is also an output It is outputted in its its output as part of present physical the table that violates structure violate SC2 SC2?

SC2 is assessed on the SC2 rule All man made outputs of all PMs that are compounds violate part of the commercial SC2, whether they stream, including the end continue through the product commercial stream or are releases as waste products

SC2 assessment requires SC2 rule The system can only A windscreen that if an output is a track the man made assembly for a car composite PS then its PS of composite PS may contain a components must be through their synthetic glue This entered (These components will only be know if the components will be derived Otherwise if does not components of the from the outputs of previous know what they are windscreen (a

- upstream - PMs) made of composite PS) are known SC2 cost of any composite SC2 rule A composite is made A car is a composite

PS is calculated from up of various PSs A windscreen assessing its compound These PSs may assembly of the car is components themselves be also a composite But composites The the glue used on the system needs to go windscreen is a back to the compound compound This the level in order to system can assess for assess for SC2 SC2 violation, violation

Man made PSs recycled SC2 If the PS has come PCBs recovered from Has this from the ecosphere, (but not from the ecosphere the soil have not SC2 man-made from closed technological there is no systematic cost physical cycles) have zero SC2 cost accumulation of the substance PS, hence no SC2 derived from the violation ecosphere?

Ecosphere derived SC2 rule The system will treats PCBs recovered from Is this

(recycled) man made PSs all man made PS as the soil are entered as man-made PS need to be created as such potential violations of recycled PCB and been recycled? for the system, e g 'PCB's SC2 Tagging the PS tagged as coming from would become 'recycled as ecosphere denved the ecosphere

PCB's and labelled as would signal a zero coming from the ecosphere ecological cost

SC2 can be restored SC2 All these processes It may be possible to What is the through 1 Breaking the prevent the systematic break down CFCs into cheapest means physical substance down accumulation of the their naturally of restoring SC2 into its naturally occurring physical substance in occurring constituent for this physical substances, 2 recycling the the ecosphere parts, to recycle it in substance? physical substance in a new fridges, or to seal permanent technical cycle, it in the bedrock

3 sealing the substance in the bedrock as a final repository

The cost of recycling in a SC2 Responsibility for the The plastic in a car What is the cost technological loop in order physical substance battery could be of preparing the to restore SC2 must include remains until it is cleaned and made physical the ecological cost of passed on by the ready for a new substance for restoring in another way the manufacturer of battery through a re-use + what is percentage of the physical another value chain buy-back system The the cost of substance lost to the There is always some cost of managing this restoration for ecosphere during recycling loss in the recycling of system + cost of any the physical materials batteries that are not substance lost returned and therefore dunng cannot be recycled = recycling? restoration cost of SC2

Man made physical SC2 By definition man Is this PS man substances systematically made substances are made? accumulate in the not usually present in ecosphere the Ecosphere The system treats them as persistent until they are proven otherwise

If a physical substance can SC2 The system defaults in be man made, then the favour of the earth system treats it as man made until confirmed otherwise If SC3 violation occurs SC3 SC3 violation may take A factory is built on an What is the through more than one place over many area of land which depreciated product, then its cost is commercial streams violates SC3 The lifetime of the allocated using the Companies spread ecological cost of locality (e g depreciation model current their capital costs violation is spread over factory or for the user company's through depreciation the depreciation quarry), and standard accounts models The same lifetime of the factory, what percentage can be done to spread and each product as a can be allocated the cost of SC3 percentage of that to this specific ecological capital allocation product?

The assessment of SC3 SC3 rule The system treats all Peat is dug from a 12 What is the violation requires that the inputs as PS, including ha site for the Capital PS terrestrial or aquatic area be specific areas of land production of compost whose input is entered as an input into a To ascertain the The PS 12ha becomes this area? factory PM It is input as a quantity of land used it an input to a Peat

'section' It's cost is needs to be translated Factory Production allocated in the PM in terms into 'factory hours' Moment, whose output of the number of factory This is the method to is 50,000 hours iβ the hours' required do this expected lifetime of

SC3 assessment concerns SC3 Harvest of specific A runway at an airport Has this area the POTENTIAL of a products from areas covers land with retained its specific terrestrial or aquatic represent current Tarmac which diversity and the area to revert to its climactic income It is the ability prevents the land from potential to state and the ACTUAL of an area to produce reverting to its full revert to its full diversity present in the area this harvest as potential Hence it and productive measured by violates SC3 The capacity? productive capacity farmers field next door and diversity, that would revert if left to constitutes ecological its own devices and capital hence has no SC3 cost

Productive potential is SC3 Soil quality is the Compaction through Has soil quality assessed through soil determining local logging has reduced been maintained quality If the soil quality is factor governing the the soil quality of an for this area? said to be reduced by ability of a terrestnal area The area is said measuring various criteria area to reach its to have lost its full then the area of land is said productive potential productive potential to have lost its productive capacity

Terrestrial areas can be said SC3 Biomes primarily the The desert biome has Biome does this to have comparable result of temperature low rainfall It also has area naturally potentials for productive and rainfall These low productive produce? capacity by assessing their are also the main capacity Which biome they would naturally factors (other than soil support These biomes are quality and then classed as areas of topography) governing

High, Medium or Low productive capacity productive potential Biomes are therefore an indicators of productive capacity

The diversity of a terrestrial SC3 The Anderson codes An area coded as Which Land Use area can be assessed using are widely used in GIS 'Industrial is said to Code is

Anderson Land Use Codes imagery and cover have low diversity appropriate for and classifying them into both natural and man this terrestrial areas of High Meduim and made areas area?

Low diversity The diversity of an area or SC3 It is not enough to The diversity of an What is the level comparable area is said to replenish a specific industnal site has been of diversity of be restored if an area is species that has been diminished Its this area? raised to the next level of removed because of restoration involved diversity the complex the cost of turning an relationships involved industnal site into in a ecosystem residential housing Therefore the means to guarantee restoration of diversity is to raise the general level of diversity of an area

Restoration of SC3 requires SC3 Maintaining flonstic An area of land in New Which flonstic that the terrestrial or aquatic regions maintains Zealand Flonstic region does this area is restored in the same diversity at the region can only be area of land flonstic region as the area ecosphere level compared in terms of belong to? violated diversity with another area in the same flonstic region

If an area is certified as SC3 Certified management Timber harvested from Is this area from sustainability managed plans protect FSC (Forest which this under accepted productive capacity of Stewardship Council) product has management plans, it is land and species certified areas has no been harvested taken that there has been diversity SC3 violation certified as no SC3 violation sustainably managed?

Order to enter SC3 inputs to SC3 rule The assessment A factory stands on 3 How is this be allocated across more requires that the ha of land and has a area across than one product or PM ecological capital capital depreciation products^?

1 Create factory Capital PS consume by an area of period of 5 years

2 Create terrestπal/aquatic land be allocated duπng which it

PS 3 Create Factory PM This entails converting produces 1000

4 Input terrestrial/aquatic an area into hours products Through this

PS as section input into method the area is factory PM 5 Have Factory divided by the

PS (hours) as output for products

Factory PM

SC3 costs are allocated SC3 rule The restoration cost 3 acres of land may be What is the size through translating sections will be based on land used to build a new of the land being into hours via rule 310 area whereas the factory The database assessed?

SC3 restoration costs from allocation of cost is via contains prices to Over what time the database are calculated hours restore comparable is the land being using ha/acres land of a comparable depreciated? size while the system allocates this restoration cost to products via a depreciaton model using hours of productive use

SC3 violation is calculated SC3 rule The allocation of cost A quarry mining Is this the most at the most downstream PM will only be known at limestone may be downstream this level 12ha in size yet the PM? SC3 cost allocated to this packet of chalk is a tiny fraction of the entire productive life of the quarry If a terrestrial or aquatic SC3 An area is generally A mining operation in Is this terrestnal area is protected by national protected to ensure Arthur's Pass National or aquatic area or international agreement the survival of rare Park in NZ has protected? then SC3 ∞sts entail the species or habitats destroyed the restoration of the exact This accords with SC3 productive potential of same habitat and flora fauna and there needs to be 2ha of land SC3 species no further reduction in ∞sts = the cost of these species/habitat restoring the same types flora/fauna species to land of same area currently without productive potential

The cost of areas or species SC3 The cost is calculated A mining operation in What is the cost that are protected by from a planetary Arthur's Pass National of SC3 violation national or international systems point of view Park, New Zealand, of this specific treaty cannot be provide for It is not equipped to that removed the locality? deal with local productive potential of instances of species or land would have to habitat depletion input its own restorative cost for SC3 violation

SC3 costs for terrestrial or SC3 rule This cost is complete Its takes 002 factory aquatic areas that have in itself No other hours to produce a been apportioned to a calculation needs to be car This produces a product via a depreciation made to it SC3 cost for the system are ADDED to the Factory land of $2 other ecological costs for This figure is added to this product in the the other figures calculation bin gained from the database,

SC3 assessed against SC3 The diversity and The land cleared for Do these inputs inputs productivity of Nature mining is a violation of violate SC3? are pnmariiy affected SC3 because of the by the removal of the removal of the productive potential of productive potential of a terrestrial or aquatic the land area area as well as resource extraction to serve as inputs to a commercial stream

Animate PS from the SC3 Ecosphere derived Has the harvest of Has the harvest

Ecosphere must be animate PS can either wood consumed the of this animate, assessed against SC3 to be the harvest of ecological capital of an ecosphere check if their harvest has nature (current area? denved PS destroyed, or threatens to income) or their ∞nsumed the destroy, the productive harvest can have led ecological capacity or diminish, or to the consumption of capital of its threaten to diminish the ecological capital in harvest area? diversity of the area relation to the diversity harvested from of an area or its productive potential

Assessing Animate PS from SC3 rule It is not the PS itself 5 cubic metres of trees What area did the E∞sphere is done by that may have were harvested from this animate creating a PM with the PS consumed ecological an area These are the ecosphere as the output and the area capital, but its effect outputs of a 'Tree derived PS as the input on the area it was production PM The ∞me from? harvested from As input is the harvest Join in a PM the area is also a PS area of land the relationship between the two is shown in a PM The restoration of a species SC3 The protection of a The ecological cost of Is this species protected by national or species suggests that a tiger skin (a protected? international agreement it is of importance or protected species) requires that the exact its is threatened Both would be the cost of species, in the exact number have an impact on raising a cub to the and age be provided diversity same matunty as the tiger whose skin is being used

Volume as a unit of measure General Volume can only be can only be used if the rule converted to weight - specific gravity of a PS is the default unit of also entered measure of the system - through the specific gravity

The scale used as the General Scale is a relative A PM may contain salt What is the relative measure of a PM is rule measure, specific to and phosphate as primary the primary commercial the PM It descnbes inputs and fertiliser as commercial output PS of that PM the quantity an output In this case output of this relationship of PS's of the Fertilizer would be PM? that PM However it deemed the scale helps the ease of use of the system if it is kept to the primary commercial output

Capital investments (plant General Plant and equipment The lorry used to Is the physical and equipment) are at are finished goods deliver a companies substance part present not sub-ect to The responsibility for goods has at present of the capital ecological cost their ecological costs zero ecological ∞st investment of rests with their the company? manufacturer

The ecological cost of a PS General At the same time The restorative price What is the is calculated as the mean taking the mean of the for SC1 for boron on mean of the 5 pπce of the 5 cheapest 5 best prices reduces the database are $45, lowest prices for restorative prices for that PS the volatility of $57, $200, $35, $79 this PS? ecological costs $23 per tonne Take the mean of the best 5 Therefore the ecological cost is $47 80

If a PS has less than 5 General Even with a smaller If Peroxide only has If there are less prices entered on the sample, a mean price two restorative prices than 5 database, the mean of the provides greater price entered for it $50 and restorative number of entries is taken stability $60, the ecological prices, what is cost would be the the mean of the mean of these two, iβ number that $55 there are^?

Calculate restoration cost at General It adds unnecessary SC1 for wood can be At this level can the most gross level of a PS rule complexity if a physical calculated at this gross system violation as possible substance is broken level SC1 for Araldite be assessed? If down to its constituent require discovering yes then parts which constituent parts calculate If no came from the then breakdown lithosphere

Key SC1 System Condition One PS Physical Substance SC2 System Condition Two PM Production Moment SC3 System Condition Three

Claims

1. A computer controlled process for the determination of the amount of ecological capital consumed in producing a product, said method, in respect of any one product, including:

(i) that substances from the earth's crust must not systematically increase in the ecosphere ("condition one");

(ii) that substances produced by society must not systematically increase in the ecosphere ("condition two"); and (iii) that the physical basis for the productivity and diversity of nature must not be systematically diminished ("condition three"); and

(i) in respect of said product, successively assessing each physical substance used in the manufacture of said input product against each system condition one and three; (ii) in respect of said product, successively assessing each output physical substance used in the manufacture of said product against system condition two; (iii) in respect of said product, successively assessing each physical substance used in the distribution of said product against the system conditions one, two and three, in the same manner as above; wherein the sum of the successive assessments results in a quantitative value for the ecological capital consumed in respect of the production of said one product; whereby said instructions and algorithm are operated in a processing means connected to the or each memory means and (d) said value (for the ecological capital) is provided through one or more media outlets.

2. A computer controlled process for the determination of the ecological cost of restoration of the environment in respect of each product, said steps being: evaluating the amount of ecological capital consumed, as defined above, and including the additional steps of: under step (a) incoφorating into a second data base data pertaining to the restoration cost of each said input physical substance; and under step (c) adding the following two steps: (iv) for each of the above assessments in which the system condition is not met, determining the quantity of each input physical substance present in said product and then successively calculating a cost for the restoration of that physical substance within the ecosystem, to the point where the system condition in question is then met;

3. A computer controlled process as claimed in claim 2, said process further including the step of providing the actual direct financial cost of manufacture of each said product at the same time as said ecological cost is provided through one or more outlet media from said electronic medium.

4. A computer controlled process as claimed in any preceding claim wherein said algorithm includes calculation of the following equation:

E = N(SC1(Q^*PI^*$R) + N^*SC2(Q*P O *$R) + SC3(Q*PI^*$R)) in which:

E = Ecological cost of product

SC = assessment against a system condition (either 0 or 1) Q = the quantity of the input physical substance

PI = the input input substance

P O = the physical output substance

$R = restoration cost of actual examples (or medium of five)

N = number of physical substances, either inputs, outputs or distribution values for the product respectively.

5. A computer controlled process as claimed in any one of the preceding claims wherein the time taken in the manufacture of any one product is deemed to be zero.

6. A computer controlled process as claimed in any one of the preceding claims wherein system condition one is assessed on inputs into the manufacture of each said one product.

7. A computer controlled process as claimed in any one of claims 2 to 6 wherein a user of said process is remote from the second database storage site and accesses said second data base by remotely controlled electronic means.

8. A computer controlled process as claimed in claim 7 wherein said remotely controlled electronic means is the internet.

9. A computer controlled process as claimed in any one of the preceding claims wherein each first data base contains data pertaining to the manufacture of more than one product.

10. A computer controlled process as claimed in any one of the preceding claims wherein data pertaining to the manufacture of any one product is contained in a plurality of first data bases.