Guide

Réflex : Our Organizational Life Cycle Assessment

In order to gain a better understanding of the environmental impacts stemming from its activities, Simplex conducted an Organizational Life Cycle Assessment in partnership with Ellio. This initiative helped identify the most impactful activities and uncover opportunities for improvement, enabling the company to invest its efforts in the right areas.

Organizational Life Cycle Assessment

What is Organizational Life Cycle Assessment (O-LCA) ?

OLCA examines everything an organization does, from what it uses to what it produces, to determine its impact on the environment. "OLCA provides a very comprehensive view of a company's impacts, as the entire value chain is taken into account," explains Sandra Arce, OLCA expert at Ellio. "Moreover, several indicators are considered, unlike a carbon footprint which only considers greenhouse gas emissions."

Specifically, what elements were analyzed in Simplex's O-LCA ?

Procurement (e.g., equipment purchases)
Customers (e.g., customer travel)
Transportation (e.g., delivery and pickup)
Building (e.g., electricity and natural gas consumption)
Support activities (e.g., employee travel)

As a result of this analysis, it was determined that Simplex emits 20,732 metric tons of CO2 equivalent. Now, let's look in detail at where these emissions come from and what solutions are being considered to reduce them.

Supply Chain

Supply chain accounts for 50% of Simplex's total environmental impacts. Within this percentage, 48% is attributed to three types of equipment: forklifts, cherry pickers, and scaffolding. Together, this trio accounts for 95% of the environmental impacts in terms of procurement. Why do these equipment types have such a significant impact on OLCA? The amount of metal required for their production amounts to 1600 tons per year.

"What's particularly interesting here is that we've targeted the supply chain, specifically the purchase of machinery and tools, as the main source of impact. However, Simplex's business model is based on leasing. This means that Simplex customers who choose to rent rather than buy are making a choice that is highly beneficial for the environment," remarks Sandra Arce.

What are the proposed solutions ?

Devote time to constant strategic monitoring to stay abreast of equipment innovations since there are currently no equipment options on the market with less metal.
Implement a responsible procurement policy, which involves developing selection criteria and favoring suppliers with responsible practices.

Customers

The use of tools rented by customers accounts for 34% of Simplex's total environmental impacts. The fossil fuels required for the operation of rented equipment explain this percentage. To arrive at this figure, the firm Ellio assumed that tool usage represented 10% of the total rental duration and that, on average, three tools were rented per customer.

What are the proposed solutions?

Reduce fossil fuel consumption by increasing the proportion of electric equipment in the inventory and prioritizing equipment that consumes less fuel.
Ensure that equipment operates optimally, requiring proper maintenance and regular tire pressure checks.

Transportation

Transportation accounts for 8% of Simplex's total environmental impacts. The impact of this category is directly proportional to the kilometers traveled. Property management has resulted in 1,300,000 kilometers, with 6% of these trips made using electric and hybrid vehicles. Delivery, on the other hand, has resulted in 2,300,000 kilometers of travel.

What are the proposed solutions?

Replace end-of-life vehicles with electric and hybrid vehicles.
Ensure that the size and power of vehicles meet actual needs.
Formalize the monitoring of maintenance operations on vehicles.
Optimize transport flows at the logistics level.
Raise awareness among employees about eco-driving practices.

Buildings

Buildings account for 3% of Simplex's total environmental impacts. The Montreal branch located on Rue des Futailles contributes nearly 40% of the environmental impacts in this category due to the use of natural gas.

What are the proposed solutions ?

Develop a strategy to decarbonize all branches, focusing on heating systems.
Implement an energy management program and raise awareness among building technicians about energy efficiency.

Support activities

Procurement accounts for 50% of Simplex's total environmental impacts. Within this percentage, 48% is attributed to three types of equipment: forklifts, cherry pickers, and scaffolding. Together, this trio represents 95% of the environmental impacts in terms of procurement. Why do these equipment types have such a significant impact on OLCA? The amount of metal required for their production amounts to 1600 tons per year.

"What's particularly interesting here is that we've targeted procurement, specifically the purchase of machinery and tools, as the main source of impact. However, Simplex's business model is based on leasing. This means that Simplex customers who choose to rent rather than buy are making a choice that is highly beneficial for the environment," remarks Sandra Arce.

What are the proposed solutions ?

Dedicate time to constant strategic monitoring to stay abreast of equipment innovations as there are currently no equipment options on the market with less metal.
Establish a responsible procurement policy, which involves developing selection criteria and prioritizing suppliers with responsible practices.

Reflex, for a sustainable future

En mettant en œuvre ces solutions, Simplex peut non seulement contribuer à la protection de l’environnement, mais aussi améliorer son efficacité opérationnelle et sa réputation sur le marché grâce à Réflex.

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