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Life Cycle Management a Business Guide to Sustainability Training Session 1 of 4 November 2006

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Life Cycle Management a Business Guide to Sustainability Training Session 1 of 4 November 2006 Life Cycle Management Training - Outline Introduction to LCM This Session! – PowerPoint PPT presentation

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Title: Life Cycle Management a Business Guide to Sustainability Training Session 1 of 4 November 2006


1
Life Cycle Managementa Business Guide to
SustainabilityTraining Session 1 of 4November
2006
2
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

3
  • Introduction to LCM
  • This Session!

4
  • How LCM is used in Practice
  • Second Session

5
  • Communicating LCM Results
  • Third Session

6
  • LCM and Stakeholder Expectations
  • Fourth Session

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
organisations 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
8
Life Cycle Management is
the application of life cycle thinking to
business practices, with the aim to
systematically manage the life cycle of an
organisations 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
9
The life cycle
10
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
11
Life Cycle Thinking
12
More sustainable
Sustainable development meets the needs of the
present
13
More sustainable
without compromising the ability of future
generations to meet their own needs.
Sustainable development meets the needs of the
present
14
Environmental Social Economic A Triple Result
15
Where does LCM apply in the organisation?
From Life Cycle Management - A Business Guide to
Sustainability. UNEP/SETAC, 2007.
16
Products Services
17
Life Cycle Management is
the application of life cycle thinking to
business practices, with the aim to
systematically manage the life cycle of an
organisations 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
18
History of LCM
2002 Sarbanes-Oxley Act
2004 ISO 14001
2001 GRI Guidelines
Increasing number complexity of expectations
2001 ISPS Code
1999 Seattle Riots-WTO
1990s Rise of the Internet
1992/97 UNEP Finance Initiatives
1996 Blue Water Network
1986 Chernobyl
1993 ISM Code
1974 SOLAS
Time
source Five Winds International
19
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
20
Who is Active in Life Cycle Thinking Today?
DAIMLERCHRYSLER
21
Why is LCM Needed? Anticipate Respond to Drivers
  • Business Strategy Drivers
  • Decision Making
  • Efficiency
  • Total Cost
  • Design
  • Market Drivers
  • Market Share
  • Access
  • Public Relations
  • Financial Sector Drivers
  • Predictability
  • Competitive Advantage
  • Legislative Drivers
  • Removal of Banned Substances
  • End of Life Responsibility

22
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

23
LCM Business Drivers 2. Market
  • Shifting expectations
  • Aware consumers
  • Procurement
  • Retailers

24
LCM Business Drivers 2. Market
25
LCM Business Drivers 2. Market
26
LCM Business Drivers 2. Market
  • Shifting expectations
  • Aware consumers
  • Retailers
  • Procurement

27
LCM Business Drivers 3. Financial Sector
28
LCM Business Drivers 3. Financial Sector
29
LCM Business Drivers 4. Legislation
  • Legislative Impact
  • Becoming more stringent
  • Targeting Firms
  • Simplicity
  • Globalization
  • Declining trust

30
LCM Business Drivers 4. Legislation
Environmental Preferable Purchasing Program
WEEE
RoHS
End-of-life vehicle directive
3R Initiative
Japans Environmental Policy Priorities Index
(JEPIX)
Regulation for Pollution Control of Electronics
Products (RPCEP)
31
LCM Business Drivers 4. Legislation
32
LCM Business Drivers 4. Legislation
33
What Does LCM Encompass?
Life Cycle Management
Data Information Models
34
What makes LCM unique from other approaches?
  • Inputs
  • Data Sources
  • Tools
  • Concepts
  • Systems
  • Policies
  • Output
  • Strategy improvements
  • Market Share
  • Access to Financing
  • Regulatory Compliance

35
What Does LCM Encompass?
Life Cycle Management
Data Information Models
36
Life Cycle Management
37
source Intier, Five Winds International,
National Resources Canada
38
  • Is an environmental strategy
  • Can be applied to processes, products and
    services
  • Can increase overall efficiency and reduce risks
    to humans and the environment

39
Industrial Ecology
Industrial Ecosystems
Policy Alignment
Balancing Production and Natural Capacity
Improved energy use patterns
Dematerialization
Emulating metabolic Pathways
40
Creating more value with less impact (WBCSD)
41
Systems Processes
42
Systems Processes
43
(No Transcript)
44
(No Transcript)
45
Integrated and Environmental Management Systems
(i.e. ISO 14000, EMAS, EFQM)
Extended Producer Responsibility (EPR)
46
Integrated and Environmental Management Systems
(i.e. ISO 14000, EMAS, EFQM)
Classic Responsibility
INPUTS
Final Product
47
Integrated and Environmental Management Systems
(i.e. ISO 14000, EMAS, EFQM)
Waste
Extended Producer Responsibility (EPR)
Waste
Benefit
Use
INPUTS
Final Product
48
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
49
Integrated and Environmental Management Systems
(i.e. ISO 14000, EMAS, EFQM)
Certification
Extended Producer Responsibility (EPR)
Integrated Product Policy (IPP)
50
(No Transcript)
51
Design for Environment (DfE)
  • The systematic integration of environmental
    considerations into product and process design.
  • Internal Drivers
  • External Drivers

52
Design for Environment (DfE)
  • Procurement policies, and 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

53
  • 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.

54
Design for Environment (DfE)
Supply Chain Management
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
55
Design for Environment (DfE)
Supply Chain Management
Stakeholder Engagement
  • Integration of social and environmental concerns
    in their business operations and in their
    interaction with their stakeholders

56
Design for Environment (DfE)
Supply Chain Management
Stakeholder Engagement
Corporate Social Responsibility (CSR)
  • Any manner of information sharing with
    stakeholders, generally through one-way,
    non-iterative processes, i.e. Corporate
    Sustainability Reporting

57
(No Transcript)
58
  • Input Output Analysis
  • Material Intensity

59
Analytical
  • Audits
  • Checklists

60
Analytical
Procedural
  • Standards
  • Voluntary Agreements

61
(No Transcript)
62
What Does LCM Encompass?
Life Cycle Management
Sustainable Development
GOAL
Data Information Models
63
LCM in MyOrganisation
Certification
Life Cycle Management
Communication
EcoEfficiency
Supportive, ISO standards on product eco-labeling
Best Practice Benchmarks
Data Information Models
64
LCM in HerOrganisation
Extended Producer Responsibility
Life Cycle Management
Dematerialization
Design for Environment
Databases
Analytical, LCA
Data Information Models
65
LCM in HisOrganisation
Integrated Management Systems (i.e. ISO 14000,
EMAS, EFQM)
Life Cycle Management
Supply Chain Management
Cleaner Production
Procedural, Supplier Audits
Benchmark supplier management best practices
Data Information Models
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
Worldwatch Institute, Worldwatch Paper 166
Purchasing Power Harnessing Institutional
Procurement for People and the Planet, July 2003,
www.worldwatch.org
68
LCM In Context An Example
69
LCM In Context An Example
70
What are the impacts of your clothes?
71
What are the impacts of your clothes?
Time to discuss
72
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
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