Transcript DRAFT UNEP Life Cycle Management Training Kit Part 1

Life Cycle Management
a Business Guide to Sustainability
Training Session 1 of 4
November 2006
1
Life Cycle Management Training Outline
•
Introduction to LCM
– This Session!
•
How LCM is used in Practice
– Second Session
•
Communicating LCM Results
– Third Session
•
LCM and Stakeholder
Expectations
– Fourth Session
2
Learning Objective: Understand the theoretical basis of life cycle
management & its history
08.0008.30
•
Introduction to LCM
– This Session!
What is a life-cycle? Impacts & value created
along the life cycle of a product or service
Definitions
History
Use
08.3008.40
Why LCM is needed in business and in
government?
Drivers
08.4009.15
What does LCM encompass?
09.1510.00
Group exercise
10.0010.30
Break for coffee & refreshments
What are the unique aspects of LCM?
3
Learning Objective: Understand the practical aspects of
LCM in policy development & business operations, through
discussions of how to integrate it into decision making &
through case examples
10.30-10.45
Life cycle management
•
How LCM is used in Practice
– Second Session
Definition & Benefits
10.45-11.00
LCM involves…
Learning from a range of examples
11.00-12.00
A process for implementing LCM
Plan – Do – Check – Adjust
A focus on design
Further examples to illustrate
12.00-12.30
Group exercise
12.30-13.30
Break for lunch
4
Learning Objective: Provide a good understanding of
communication tools and strategies. Why and how can they
be valuable to business?
08.00-08.15
Why communicating LCM? To whom?
Definition and scope, drivers, target
groups of communication
08.15-09.00
Communication toolbox
Main features and link with LCM
Examples and diffusion of tools
09.00-09.45
•
Communicating LCM Results
– Third Session
Case-studies
Sector-specific drivers
Communication strategies
Combination of tools
09.45-10.00
Group exercise
10.00-10.30
Break for coffee & refreshments
5
Learning Objective: Understand how to identify
stakeholders, as well as their priorities & concerns
10.30-10.35
Why Engage Stakeholders?
10.35-10.45
Identifying Stakeholders
Potential Stakeholders
Ask the right people
Ranking
10.45-11.00
Importance of Including Stakeholders
Risk Avoidance
Opportunity Creation
11.00-11.45
Case example
11.45-12.30
Group exercise
12.30-13.30
Break for lunch
•
LCM and Stakeholder
Expectations
– Fourth Session
6
Life Cycle Management is…
… the application of life cycle thinking to
business practices, with the aim to
systematically manage the life cycle of
an organisation’s products and services
… the systematic management of
product and material life cycles, to
promote production and consumption
patterns that are more sustainable than
the ones we have today
…a flexible integrated, management
framework of concepts, techniques and
procedures to address environmental,
economic, and social aspect of
products, procedures and organisations
adapted from Background Report UNEP Guide to LCM – A bridge to Sustainable Products Feb 2006 7
Life Cycle Management is…
… the application of life cycle thinking to
business practices, with the aim to
systematically manage the life cycle of
an organisation’s products & services
… the systematic management of
product & material life cycles, to
promote production & consumption
patterns that are more sustainable
than the ones we have today
…a flexible integrated, management
framework of concepts, techniques &
procedures to address environmental,
economic & social aspect of products,
procedures & organisations
8
The life cycle
9
The Life Cycle – An Example
Worldwatch Institute, Worldwatch Paper 166: Purchasing Power: Harnessing Institutional
Procurement for People and the Planet, July 2003, www.worldwatch.org
10
Life Cycle Thinking
11
More sustainable
Sustainable development
“meets the needs of the
present …
$
12
More sustainable
Sustainable development
…without compromising the
“meets the needs of the
ability of future generations to
present …
meet their own needs.”
$
13
Environmental Social Economic – A Triple Result
14
Where does LCM apply in the organisation?
From: Life Cycle Management - A Business Guide to Sustainability. UNEP/SETAC, 2007.
15
Products & Services
16
Life Cycle Management is…
… the application of life cycle thinking to
business practices, with the aim to
systematically manage the life cycle of
an organisation’s products & services
… the systematic management of
product & material life cycles, to
promote production & consumption
patterns that are more sustainable
than the ones we have today
…a flexible integrated, management
framework of concepts, techniques &
procedures to address environmental,
economic & social aspect of products,
procedures & organisations
17
History of LCM
Increasing number & complexity of expectations
2001
OECD EPR
Guidelines
2002
Sarbanes-Oxley
Act
2001
EU Green
Paper IPP
2005
South Asian
Tsunami
2000
Starlink Corn /
2006
1999
GMO
Hurricane
OECD Principles
Katrina
of Corporate
2001 GRI
2004
2000
Governance
ISO 14001
GRI SD Reporting Guidelines
Guidelines
2001
1997
Exxon & BP
1998
SA8000
2001
Shareholder
Global Mining
ISPS Code
Activism
Initiative
1996
2001
Nigeria
1999
1999
FTSE4Good
1990s
AA1000
Seattle RiotsIndex
Rise of the
2000
1997
WTO
Internet
UN Global
Kyoto Protocol
Compact
1992/97
1999
UNEP Finance
Global Sullivan
1990s
Initiatives
Principles
2001
Globalization
European
of Media
1996
1989
1992
Green Paper
Blue Water
Exxon Valdez
UNCED/
on CSR
1986
1999
Network
Agenda 21
Chernobyl
Nike Labour
1989
1990
1996
Practices
CERES
Domini Index
ISO14001
Campaign
1987
1999
Principles
Fund
Montreal
DJSI
1984
1995
Protocol
1989
Union Carbide,
Brent Spar
1993
ILO Convention
Bhopal
1986
on Ind. People
ISM Code
Responsible
1987
1974
Care
Our Common
1989
SOLAS
1993
Future
The Natural
TRI
1972
1986
Step
FCCA
Right to Know
1990s
1962
Act
Growth in SRI
1980
Silent Spring
Superfund
1971
1982
Green Peace
Seveso
& FOE
Directive
Time
source: Five Winds International
18
History of LCM
Increasing number & complexity of expectations
Life Cycle Management
Life Cycle Assessment
Improved Corporate
Environmental Performance
Early
Environmental
Movement
Time
Time
source: Five Winds International
19
Who is Active in Life Cycle Thinking Today?
DAIMLERCHRYSLER
20
Why is LCM Needed? Anticipate & Respond to Drivers
1. Business Strategy Drivers
•
•
•
•
Decision Making
Efficiency
Total Cost
Design
2. Market Drivers
• Market Share
• Access
• Public Relations
3. Financial Sector Drivers
• Predictability
• Competitive Advantage
4. Legislative Drivers
• Removal of Banned Substances
• End of Life Responsibility
21
LCM Business Drivers – 1. Business Strategy
• Decision Making
– Getting a complete picture
– New business
opportunities
• Efficiency
– Eco-Efficiency
• Total Cost
• Design
– Improved value or
performance
• Avoided Risk
22
LCM Business Drivers – 2. Market
• Shifting expectations
– Aware consumers
– Procurement
– Retailers
23
LCM Business Drivers – 2. Market
24
LCM Business Drivers – 2. Market
25
LCM Business Drivers – 2. Market
• Shifting expectations
– Aware consumers
– Retailers
– Procurement
26
LCM Business Drivers – 3. Financial Sector
Total Growth in Social Investing in the US
Between 1995 and 2005
Value in Billions
2500
2000
1500
1000
500
0
1995
1997
1999
2001
2003
2005
Year
27
LCM Business Drivers – 3. Financial Sector
28
LCM Business Drivers – 4. Legislation
• Legislative Impact
– Becoming more stringent
– Targeting Firms
• Simplicity
• Globalization
• Declining trust
29
LCM Business Drivers – 4. Legislation
WEEE
RoHS
Environmental
Preferable
Purchasing
Program
End-of-life vehicle
directive
3R
Initiative
Regulation for Pollution
Control of Electronics
Products (RPCEP)
Japan’s Environmental
Policy Priorities Index
(JEPIX)
30
LCM Business Drivers – 4. Legislation
31
LCM Business Drivers – 4. Legislation
32
What Does LCM Encompass?
Strategies
&
Concepts
Systems
&
Processes
Programmes
Life Cycle
Management
Data
Information
& Models
Tools
&
Techniques
33
What makes LCM unique from other approaches?
Output
Inputs
• Data Sources
•Strategy
improvements
• Tools
•Market Share
• Concepts
•Access to
Financing
• Systems
• Policies
LCM
•Regulatory
Compliance
34
What Does LCM Encompass?
Strategies
&
Concepts
Systems
&
Processes
Programmes
Life Cycle
Management
Data
Information
& Models
Tools
&
Techniques
35
Dematerialization
Strategies
&
Concepts
Cleaner Production
Life Cycle
Industrial Ecology
Management
Eco-efficiency
36
Dematerialization
Strategies
&
Concepts
source: Intier, Five Winds International, National Resources Canada
37
Dematerialization
Strategies
&
Concepts
Cleaner Production
- Is an environmental strategy
- Can be applied to processes, products and services
- Can increase overall efficiency and reduce risks to
humans and the environment
38
Dematerialization
Strategies
&
Concepts
Cleaner Production
Industrial Ecology
Industrial
Ecosystems
Balancing
Production and
Natural Capacity
Dematerialization
Policy
Alignment
Improved energy
use patterns
Emulating metabolic
Pathways
39
Dematerialization
Strategies
&
Concepts
Cleaner Production
Industrial Ecology
Eco-efficiency
“Creating more value with less impact” (WBCSD)
40
Integrated and
Environmental
Management Systems
Systems
&
Processes
Certification
(i.e. ISO 14000, EMAS, EFQM)
Extended Producer
Responsibility (EPR)
Integrated Product
Policy (IPP)
41
Integrated and
Environmental
Management Systems
Systems
&
Processes
(i.e. ISO 14000, EMAS, EFQM)
42
Budgetary
Planning
Continual
Improvement
MS in Action
“Plan”
• Annual Budget [and Five Year Plan]
• Environmental Management Programs
[Objectives, Targets, Resources]
Revised
management
priorities
“Feedback”
“Do”
• Management
Review
• Industry
meetings
• Discourse
with
regulators
New Best
Management
Practices
MS Body
of Knowledge
•
•
•
•
•
•
•
Significant Aspects
Legal and Other Req.
Op. Controls:SOP/SWI
Training Programs
Monitoring Programs
Comm. Program
Emergency Response
New
Employee
Training
• Awareness
Training
• Corrective
Actions
Response
to Public
Inquiries
• Emergency
Response
• Corrective
Actions
• Communication
• Purchasing
Practices
• Routine
Documentation
“Check”
Corporate,
Internal &
Regulatory Audits
• Measurement and Monitoring
• Aspect & Legal Reviews
• Auditing
New
Developments
or Activities
EMS Document
Reviews vs. Actual
Processes
© Five Winds
International
43
Integrated and
Environmental
Management Systems
Systems
&
Processes
(i.e. ISO 14000, EMAS, EFQM)
44
Integrated and
Environmental
Management Systems
Systems
&
Processes
(i.e. ISO 14000, EMAS, EFQM)
Extended Producer
Responsibility (EPR)
45
Integrated and
Environmental
Management Systems
Systems
&
Processes
(i.e. ISO 14000, EMAS, EFQM)
Classic
Responsibility
INPUTS
Final Product
46
Integrated and
Environmental
Management Systems
Systems
&
Processes
(i.e. ISO 14000, EMAS, EFQM)
Waste
Benefit
Waste
Extended Producer
Responsibility (EPR)
Use
INPUTS
Final Product
47
Systems
&
Processes
Integrated and
Environmental
Management Systems
(i.e. ISO 14000, EMAS, EFQM)
Extended Producer
Responsibility (EPR)
Integrated Product
Policy (IPP)
By using a variety of tools it is possible to develop a
policy that addresses the system wide impacts of
products or processes
48
Integrated and
Environmental
Management Systems
Systems
&
Processes
Certification
(i.e. ISO 14000, EMAS, EFQM)
Extended Producer
Responsibility (EPR)
Integrated Product
Policy (IPP)
49
Design for Environment
(DfE)
Supply Chain
Management
Public Green Procurement
Programmes
Stakeholder Engagement
Corporate Social
Responsibility (CSR)
Communication
50
Design for Environment
(DfE)
The systematic integration of environmental
considerations into product and process
design.
Programmes
•Internal Drivers
•External Drivers
51
Design for Environment
(DfE)
Supply Chain
Management
• Procurement policies, and
Programmes
procedures, are a common, and
effective, gate by which life cycle
management can develop in a firm
• Working with suppliers and supply
chain issues is rapidly increasing as
an important strategic consideration
52
Design for Environment
(DfE)
Supply Chain
Management
Public Green Procurement
Programmes
• The best value for money considerations such as,
price, quality, availability, functionality, etc.;
• Considers the entire Life Cycle of products;
• Social aspects: effects on issues such as poverty
eradication, international equity in the distribution of
resources, labour conditions, human rights.
53
Design for Environment
(DfE)
Supply Chain
Management
Public Green Procurement
Programmes
Stakeholder Engagement
“… Value creation for everyone involved in enterprise is
fundamental to creating common purpose and
addressing the complex issues facing the planet.”
- The Stakeholder Engagement Manual
54
Design for Environment
(DfE)
Supply Chain
Management
Public Green Procurement
Programmes
Stakeholder Engagement
Corporate Social
Responsibility (CSR)
• Integration of social and environmental concerns in
their business operations and in their interaction
with their stakeholders
55
Design for Environment
(DfE)
Supply Chain
Management
Public Green Procurement
Programmes
Stakeholder Engagement
Corporate Social
Responsibility (CSR)
Communication
• Any manner of information sharing with
stakeholders, generally through one-way,
non-iterative processes, i.e. Corporate
Sustainability Reporting
56
Analytical
Procedural
Tools
&
Techniques
Supportive
57
Analytical
• Input – Output Analysis
• Material Intensity
Tools
&
Techniques
58
Analytical
Procedural
• Audits
• Checklists
Tools
&
Techniques
59
Analytical
Procedural
Tools
&
Techniques
Supportive
• Standards
• Voluntary Agreements
60
Data: Databases, Data
Warehousing, Controlling
Best Practice: Best
Practice Benchmarks,
References, etc.
Data
Information
& Models
Models: Fate,
Dose-Response,
etc.
61
What Does LCM Encompass?
Strategies
&
Concepts
Systems
&
Processes
Programmes
Life Cycle
Management
GOAL
Data
Information
& Models
Sustainable
Development
Tools
&
Techniques
62
LCM in My
Organisation
Strategies
&
Concepts
EcoEfficiency
Systems
&
Processes
Programmes
Certification
Life Cycle
Communication
Management
Best Practice Benchmarks
Data
Information
& Models
Supportive, ISO standards on
product eco-labeling
Tools
&
Techniques
63
LCM in Her
Organisation
Systems
&
Processes
Strategies
&
Concepts
Programmes
Extended Producer
Responsibility
Dematerialization
Life Cycle
Management
Databases
Data
Information
& Models
Design for
Environment
Analytical, LCA
Tools
&
Techniques
64
LCM in His
Organisation
Strategies
&
Concepts
Cleaner Production
Systems
&
Processes
Integrated Management Systems
Programmes
(i.e. ISO 14000, EMAS, EFQM)
Life Cycle
Management
Supply Chain
Management
Procedural, Supplier Audits
Data
Information
& Models
Benchmark
supplier
management
best practices
Tools
&
Techniques
65
LCM In Context – An Example
Worldwatch Institute, Worldwatch Paper 166: Purchasing Power: Harnessing Institutional
Procurement for People and the Planet, July 2003, www.worldwatch.org
66
LCM In Context – An Example
Worldwatch Institute, Worldwatch Paper 166: Purchasing Power: Harnessing Institutional
Procurement for People and the Planet, July 2003, www.worldwatch.org
67
LCM In Context – An Example
Geoffrey Gaudreault, NPR
68
LCM In Context – An Example
69
What are the impacts of your clothes?
70
What are the impacts of your clothes?
Time to discuss…
71
Life Cycle Management Training Outline
•
Introduction to LCM
– This Session!
•
How LCM is used in Practice
– Next session!
•
Communicating LCM Results
– Subsequent Session
•
LCM and Stakeholder
Expectations
– Subsequent Session
72