‘Sustainability’ of two automobile options
This purpose of this exercise is to assess the ‘Sustainability’ of two automobile options by applying Integrated
Bottom Line (IBL) Sustainability Metrics and a Life Cycle Analysis (LCA) approach. Using the information and tools
that were presented in class and in the assigned readings; and, using additional tools and other data that you
might research on your own – please complete the exercise described below.
Step 1 – Define Criteria: Using Integrated Bottom Line (IBL) Sustainability Metrics combined with a Life Cycle
Analysis (LCA) approach, define the criteria you would use to compare and assess the ‘sustainability’ of two
vehicles. The two vehicles to be compared are an all-electric automobile (Nissan Leaf, or Tesla Model 3 or
similar) and a diesel (VW Passat or similar).
Step 2 – Sustainability Assessment: Complete the sustainability assessment using your IBL and LCA criteria and
select the more sustainable of the two vehicles.
Due Date: Present your results in a class presentation (and short report) during the class session on Tuesday June
9, 2020.
EXERCISE DETAILS:
The class has been divided into three groups of five student by a random selection as shown below. IBL
assignments were made at random. You can change the IBL assignments among your team members if you
prefer. Coordinate that through your team leader and inform the professor if or when that occurs.
my part is HUMAN CAPITAL, and the two vehicles we choose is Tesla Model 3 and BMW 3 series.
Procedure:
- On an individual basis, for each assigned IBL define the criteria or metrics that you would use to measure
‘sustainability’ in each step of the LCA (i.e. upstream inputs, production/manufacturing phase, operation
and downstream end-of-life inputs). Describe and list these criteria.
- As a team, complete a sustainability assessment of the two vehicles using your IBL/LCA parameters.
Select/defend your selection of the more sustainable vehicle.
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- DELIVERABLE: 30-minute presentation in class on June 9th. Each student will present the LCA criteria that
they developed and then the group will present the results of their sustainability selection. The
presentation should be backed by a written report which provides pertinent details regarding the group
selection process. The report should be no more than 5 pages.
- Your sustainability selection presentation and report should provide an explanation of how you would
balance the relationship between the financial balance sheet and the sustainability balance sheet (Natural
Capital, Social Capital, Human Capital) when assessing the sustainability of an auto. Do you assign
different weights to the various criteria?
- Assumptions:
- Car is driven 30,000 miles per year – 15000 in city, 15000 on open roads. All in an area with a similar
climate to Chicago (i.e. experience all four seasons of the climate cycle).
- Each car will be kept for 10 years. Assume battery packs and engines will not need to be replaced
during that time.
- Use manufacturer’s suggested retail prices for US. Try to standardize optional equipment for both
models. If you add luxury items to one car, add them for the other car also.
- Cost of electricity: $0.11per kWh. Inflation 1% annually.
- Cost of gasoline: $3.00/gallon. Inflation 3% annually.
- Use manufacturer’s/EPA energy consumption data (fuel & electricity)
- Cost of cash/Inflation: 3%
- Salvage values and costs – make your own appropriate assumptions.
Comments from Customer
Discipline: sustainability