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

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Title: DRAFT UNEP Life Cycle Management Training Kit Part 1 Introduction Author: fivewinds Last modified by: Jeppe Frydendal Created Date: 6/5/2006 3:16:04 PM – PowerPoint PPT presentation

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


1
Life Cycle Management a Business Guide to
Sustainability Training Session 4 of 4 November
2006
2
Life Cycle Management Training - Outline
  • Introduction to LCM
  • First session
  • How LCM is used in Practice
  • Second session
  • Communicating LCM Results
  • Third session
  • LCM and Stakeholder Expectations
  • This Session!

3
Learning Objective Understand the theoretical basis of life cycle management its history Learning Objective Understand the theoretical basis of life cycle management its history
08.00-08.30 What is a life-cycle? Impacts value created along the life cycle of a product or service Definitions History Use
08.30-08.40 Why LCM is needed in business and in government? Drivers
08.40-09.15 What does LCM encompass? What are the unique aspects of LCM?
09.15-10.00 Group exercise
10.00-10.30 Break for coffee refreshments
  • Introduction to LCM
  • First session

?
done
4
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 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 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
  • How LCM is used in Practice
  • Second Session!

?
done
5
Learning Objective Provide a good understanding of communication tools and strategies. Why and how can they be valuable to business? 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 Case-studies Sector-specific drivers Communication strategies Combination of tools
09.45-10.00 Group exercise
10.00-10.30 Break for coffee refreshments
  • Communicating LCM Results
  • Third Session

?
done
6
Learning Objective Understand how to identify stakeholders the basics of a process for stakeholder engagement Reflect on your relevant stakeholders Learning Objective Understand how to identify stakeholders the basics of a process for stakeholder engagement Reflect on your relevant stakeholders
10.30-10.45 Opening engaging Discussion
10.45-11.00 Stakeholder Expectations Today Value of Engaging your Stakeholders
10.45-11.00 A Process for Stakeholder Engagement
11.00-11.45 Case examples
11.45-12.15 Closing group Discussion
12.15-13.30 Break for lunch
  • LCM and Stakeholder Expectations
  • This Session!

7
Exercise Who Has a Stake?
8
Companies are not alone in the world
From Life Cycle Management - A Business Guide to
Sustainability. UNEP/SETAC, 2007.
9
Trends changing expectations
  • Complexity of Stakeholder Expectations
    Increasing
  • Economic ? Environment ? Social ?
    Sustainability
  • Facilities ? Products ? Suppliers End of Life
  • Trust Me ? Tell Me ? Show Me ? Involve me
  • Definition of Stakeholders is Broadening
  • External ? Internal

10
Consider 2 types of stakeholders
1. Corporate 2. Community
Organisations that work with a number of different companies at a strategic or corporate level Organisations that work with the companies who operate in their region at the local community level
  • The two types are not mutually exclusive

11
What do corporate-level stakeholders expect?
  • Strategic, corporate level stakeholders
  • Can have high expectations of the companies with
    whom they partner
  • Most focused on a clear agenda of specific issues
  • Approached by many companies, so will be
    selective of whom they work with
  • A majority of engagements at this level rely very
    much on personal relationships
  • Many expectations revolve around building
    maintaining trust

12
What do community-level stakeholders expect?
  • Local, community level stakeholders
  • Expectations are unique to each community
  • Often, companies incorrectly assume that
  • Stakeholders who want to be consulted or engaged
    will be the same in each community / region
  • Stakeholder expectations or issues will be the
    same from facility to facility, region to region
  • Companies need to take the time to effectively
    listen to their concerns, to ensure they
    understand the real roots of the concerns

13
Stakeholder expectations in 3 areas
Expectations Expectations Expectations
Community / Operations Corporate performance Product performance
Contribution to social, cultural economic wellbeing of local community Environmental, social stated in company's mission Policy to address environmental impact of products
Two-way communication, engaging community in decision-making Code of ethics or policy on expected behavior of employees business partners Programs to address same (design for environment, product and packaging take-back
Identifies prioritises risks Targets on sustainability monitored, measured, reported publicly Targets on environmental performance of products monitored, measured, reported (e.g. product declarations)
14
Value of working with stakeholders
  • Opportunity creation
  • Risk avoidance

15
Business value of working with stakeholders
Business Value of Stakeholder Engagement A survey of 8 companies Business Value of Stakeholder Engagement A survey of 8 companies Business Value of Stakeholder Engagement A survey of 8 companies Business Value of Stakeholder Engagement A survey of 8 companies Business Value of Stakeholder Engagement A survey of 8 companies Business Value of Stakeholder Engagement A survey of 8 companies Business Value of Stakeholder Engagement A survey of 8 companies Business Value of Stakeholder Engagement A survey of 8 companies Business Value of Stakeholder Engagement A survey of 8 companies
Business value Company 1 2 3 4 5 6 7 8
Maintain or improve reputation image ? ? ? ? ? ? ? ?
Keep the radar screen tuned - Stay in front of influence regulations expectations ? ? ? ? ? ? ?
Stimulate innovation generate ideas ? ? ? ? ?
Expedite permitting approvals ? ? ? ?
source Five Winds International, 2003.
Effectively Engaging Stakeholders A survey of
current practice presentation to Conference
Board of Canada, 20 May 2003, Kevin Brady,
Director, Five Winds International.
16
Business value of working with stakeholders
From Life Cycle Management - A Business Guide to
Sustainability. UNEP/SETAC, 2007.
17
Importance of Including Stakeholders
  • Opportunity Creation
  • Less Developed Countries
  • Presenting to the greater community
  • Establishing mechanism for ongoing community
    input
  • Building the organisations brand
  • Reassessing opportunities for value creation

18
Importance of Including Stakeholders
  • Opportunity Creation
  • Less Developed Countries
  • Existing Markets
  • Innovation
  • Good Reputation
  • Social Licence to Operate

19
Importance of Including Stakeholders
  • 2. Risk avoidance
  • Project delays
  • Cancellations
  • Public relations disasters, e.g. Public boycotts
  • Damaged reputations

20
Process for Stakeholder Engagement
  • Commitment Principles
  • Designate responsibility
  • Develop principles to guide engagement
  • Identifying Prioritising Stakeholders
  • Identify key stakeholders
  • Identify the issues
  • Methods Types of Engagement (Toolbox)
  • Determine appropriate method of engagement
  • Implementation Exit

source Five Winds International, 2003.
Effectively Engaging Stakeholders A survey of
current practice presentation to Conference
Board of Canada, 20 May 2003, Kevin Brady,
Director, Five Winds International.
21
Process for Stakeholder Engagement 1. Commitment
Principles
  • Designate responsibility to a group or
    individual
  • need internal champion(s) to ensure that
    appropriate stakeholder engagement takes place
  • champions should have experience in stakeholder
    engagement strong interpersonal skills for
    relationship building
  • champions should be interested, willing see the
    value
  • champions need to report to a senior executive to
    ensure high level commitment involvement

22
Process for Stakeholder Engagement 1.
Commitment Principles
  • Develop principles to guide engagement, in order
    to
  • demonstrate commitment to stakeholders
  • establish rules of the game for fair, respectful
    dialogue
  • ensure consistent approach across all operations

23
Process for Stakeholder Engagement 2.
Identifying Prioritising Stakeholders
  • Potential Stakeholder Groups to include
  • International, national and regional regulatory
    bodies
  • Shareholders
  • Investment community
  • Local and global environmental and social
    non-governmental organisations
  • Local communities
  • Members of supply chain
  • Customers
  • Employees and contractual workers
  • Media
  • Labour Associations
  • Commercial Trade Associations

24
Process for Stakeholder Engagement 2.
Identifying Prioritising Stakeholders
  • Ask the right people
  • Contact/ interview key representatives from your
    organisation about who they feel are key
    stakeholders
  • Collaborate with leaders from various business
    functions

25
Process for Stakeholder Engagement 2.
Identifying Prioritising Stakeholders
  • Rank stakeholder groups based on their relevance
    to your organisations LCM strategy
  • Prioritise the stakeholder groups based on their
    relevance to the business
  • Select the stakeholder groups in terms of their
    expectations

26
Process for Stakeholder Engagement 3. Methods
Types of Engagement
  • What determines the method of engagement?
  • business value, issues being discussed, location,
    stage of process, level of resources required
    etc.
  • Method entail different levels of involvement
  • Information Sharing
  • Consultation
  • Collaboration

Increasing level of involvement
27
Process for Stakeholder Engagement 4.
Implementation Exit
  • Implement
  • develop action items to address issues raised
  • measure success
  • Maintain enthusiasm credibility
  • Justify time expense
  • Exit
  • Set a time line
  • If reason for engagement is addressed, exiting
    relationship is natural
  • With local community stakeholders, engagement
    often lasts for the duration of an operation or
    project, even after closure or decommissioning

28
Process for Stakeholder Engagement 4.
Implementation Exit
Case Study CEMEX
29
Stakeholder engagement case studies
30
Case Study Anglo American
  • Have Operations in over 60 countries
  • Many in developing or emerging markets
  • Often in remote or rural communities
  • There is a public expectation that they
    facilitate poverty alleviation, health and
    unemployment, both in their operations and in the
    greater community.

31
Case Study Anglo American
  • Use their Socio-Economic Assessment Toolbox
    (SEAT)
  • Develop Community Engagement Plans
  • Facilitate engagement through
  • Social Forums
  • Partnerships
  • Continually look for Feedback

32
Case Study Anglo American
  • Stakeholders include
  • Investors
  • Employees and their representatives
  • Governments
  • International organisations
  • Communities (operational responsibility)
  • Contractors and suppliers
  • Customers
  • NGOs

33
Case Study Anglo American
  • Mondi Packaging Paper Mill
  • Located in Swiecie, Poland
  • Conducted a socio-economic assessment
  • Developed a strategy to address local concerns

34
Case Study WWF Conservation Partners
  • Basic Principles of Engagement
  • Mutual Respect
  • Transparency
  • Right to criticise

35
Case Study WWF Conservation Partners
  • The Partnership aim to facilitate
  • Conservation
  • Communications
  • Joint Learning Initiatives
  • Conservation Partnerships
  • Investment

36
Case Study WWF Conservation Partners
37
Discussion Who Can I Engage?
38
Additional questions for thought
  1. Who in your organisation should participate in
    identifying the most important stakeholders to
    engage with?
  2. Name one issue important to your organisation
    that stakeholder engagement could help address?
  3. Think about one particular stakeholder you could
    work with. What perspectives and skills could
    they bring to the table? What would the benefits
    be for your organisation and for the stakeholder
    respectively?
  4. Are there particular opportunities for your
    organisation to improve stakeholder engagement in
    less developed countries? In established markets?

39
Life Cycle Management Training - Outline
  • Introduction to LCM
  • First session
  • How LCM is used in Practice
  • Second session
  • Communicating LCM Results
  • Third session
  • LCM and Stakeholder Expectations
  • This Session!
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