1 Life Cycle Management a Business Guide to Sustainability Training Session 1 of 4 November 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! Learning Objective: Understand the theoretical basis of life cycle management & its history What is a life-cycle? Impacts & value created along the life cycle of a product or service Definitions History Use Why LCM is needed in business and in government? Drivers What does LCM encompass? What are the unique aspects of LCM? Group exercise Break for coffee & refreshments

4 How LCM is used in Practice –Second Session 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 Life cycle management Definition & Benefits LCM involves… Learning from a range of examples A process for implementing LCM Plan – Do – Check – Adjust A focus on design Further examples to illustrate Group exercise Break for lunch

5 Communicating LCM Results –Third Session Learning Objective: Provide a good understanding of communication tools and strategies. Why and how can they be valuable to business? Why communicating LCM? To whom? Definition and scope, drivers, target groups of communication Communication toolbox Main features and link with LCM Examples and diffusion of tools Case-studies Sector-specific drivers Communication strategies Combination of tools Group exercise Break for coffee & refreshments

6 LCM and Stakeholder Expectations –Fourth Session Learning Objective: Understand how to identify stakeholders, as well as their priorities & concerns Why Engage Stakeholders? Identifying Stakeholders Potential Stakeholders Ask the right people Ranking Importance of Including Stakeholders Risk Avoidance Opportunity Creation Case example Group exercise Break for lunch

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 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 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

9 The life cycle

10 Worldwatch Institute, Worldwatch Paper 166: Purchasing Power: Harnessing Institutional Procurement for People and the Planet, July 2003, The Life Cycle – An Example

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 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

Exxon Valdez History of LCM Increasing number & complexity of expectations Time 1962 Silent Spring 1971 Green Peace & FOE 1972 FCCA 1974 SOLAS 1984 Union Carbide, Bhopal 1986 Responsible Care 1980 Superfund 1982 Seveso Directive 1986 Right to Know Act 1989 ILO Convention on Ind. People 1987 Our Common Future 1989 CERES Principles 1987 Montreal Protocol 1989 The Natural Step 1986 Chernobyl 1993 TRI 1997 Kyoto Protocol 1996 Nigeria 1997 SA AA Global Mining Initiative 1999 OECD Principles of Corporate Governance 1993 ISM Code 1992 UNCED/ Agenda Domini Index Fund 1990s Globalization of Media 1995 Brent Spar 1990s Growth in SRI 1996 Blue Water Network 1992/97 UNEP Finance Initiatives 1999 Seattle Riots- WTO 1996 ISO DJSI 1999 Global Sullivan Principles 1999 Nike Labour Practices Campaign 1990s Rise of the Internet 2001 OECD EPR Guidelines 2000 GRI SD Reporting Guidelines 2000 Starlink Corn / GMO 2000 UN Global Compact 2001 Exxon & BP Shareholder Activism 2001 EU Green Paper IPP 2001 European Green Paper on CSR 2001 FTSE4Good Index 2002 Sarbanes-Oxley Act 2001 ISPS Code 2004 ISO GRI Guidelines 2005 South Asian Tsunami 2006 Hurricane Katrina source: Five Winds International

19 History of LCM Time Early Environmental Movement Improved Corporate Environmental Performance Life Cycle Assessment Life Cycle Management Increasing number & complexity of expectations Time source: Five Winds International

20 Who is Active in Life Cycle Thinking Today? D AIMLER C HRYSLER

21 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

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 WEEE RoHS End-of-life vehicle directive 3R Initiative Japan’s Environmental Policy Priorities Index (JEPIX) Environmental Preferable Purchasing Program 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? Strategies & Concepts Systems & Processes Programmes Data Information & Models Tools & Techniques Life Cycle Management

34 Inputs Data Sources Tools Concepts Systems Policies What makes LCM unique from other approaches? LCM Output Strategy improvements Market Share Access to Financing Regulatory Compliance

35 What Does LCM Encompass? Strategies & Concepts Systems & Processes Programmes Data Information & Models Tools & Techniques Life Cycle Management

36 Life Cycle Management Industrial Ecology Dematerialization Cleaner Production Eco-efficiency Strategies & Concepts

37 Strategies & Concepts Dematerialization source: Intier, Five Winds International, National Resources Canada

38 Strategies & Concepts Dematerialization 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

39 Industrial Ecology Dematerialization Cleaner Production Industrial Ecosystems Balancing Production and Natural Capacity DematerializationEmulating metabolic Pathways Improved energy use patterns Policy Alignment Strategies & Concepts

40 Strategies & Concepts Industrial Ecology Dematerialization Cleaner Production Eco-efficiency “Creating more value with less impact” (WBCSD)

41 Certification Extended Producer Responsibility (EPR) Integrated and Environmental Management Systems (i.e. ISO 14000, EMAS, EFQM) Systems & Processes Integrated Product Policy (IPP)

42 Integrated and Environmental Management Systems (i.e. ISO 14000, EMAS, EFQM) Systems & Processes

43

44 Integrated and Environmental Management Systems (i.e. ISO 14000, EMAS, EFQM) Systems & Processes

45 Integrated and Environmental Management Systems (i.e. ISO 14000, EMAS, EFQM) Extended Producer Responsibility (EPR) Systems & Processes

46 Integrated and Environmental Management Systems (i.e. ISO 14000, EMAS, EFQM) Classic Responsibility INPUTS Final Product Systems & Processes

47 Integrated and Environmental Management Systems (i.e. ISO 14000, EMAS, EFQM) INPUTS Final Product Waste Use Extended Producer Responsibility (EPR) Benefit Systems & Processes

48 Extended Producer Responsibility (EPR) Integrated and Environmental Management Systems (i.e. ISO 14000, EMAS, EFQM) Systems & Processes 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) Systems & Processes

50 Supply Chain Management Communication Corporate Social Responsibility (CSR) Stakeholder Engagement Public Green Procurement Design for Environment (DfE) Programmes

51 Design for Environment (DfE) The systematic integration of environmental considerations into product and process design. Internal Drivers External Drivers Programmes

52 Design for Environment (DfE) Supply Chain Management 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 Programmes

53 Design for Environment (DfE) Supply Chain Management Public Green Procurement 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. Programmes

54 Design for Environment (DfE) Supply Chain Management Stakeholder Engagement Public Green Procurement “… 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 Programmes

55 Design for Environment (DfE) Supply Chain Management Corporate Social Responsibility (CSR) Stakeholder Engagement Public Green Procurement Integration of social and environmental concerns in their business operations and in their interaction with their stakeholders Programmes

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

57 Analytical Procedural Supportive Tools & Techniques

58 Analytical Input – Output Analysis Material Intensity Tools & Techniques

59 Analytical Procedural Audits Checklists Tools & Techniques

60 Analytical Procedural Supportive Standards Voluntary Agreements Tools & Techniques

61 Data: Databases, Data Warehousing, Controlling Best Practice: Best Practice Benchmarks, References, etc. Models: Fate, Dose-Response, etc. Data Information & Models

62 What Does LCM Encompass? Strategies & Concepts Systems & Processes Programmes Data Information & Models Life Cycle Management Tools & Techniques GOAL Sustainable Development

63 LCM in My Organisation Best Practice Benchmarks Communication Certification EcoEfficiency Strategies & Concepts Systems & Processes Programmes Data Information & Models Tools & Techniques Life Cycle Management Supportive, ISO standards on product eco-labeling

64 LCM in Her Organisation Databases Design for Environment Dematerialization Strategies & Concepts Systems & Processes Programmes Data Information & Models Tools & Techniques Life Cycle Management Analytical, LCA Extended Producer Responsibility

65 LCM in His Organisation Supply Chain Management Cleaner Production Strategies & Concepts Systems & Processes Programmes Data Information & Models Tools & Techniques Life Cycle Management Procedural, Supplier Audits Benchmark supplier management best practices Integrated Management Systems (i.e. ISO 14000, EMAS, EFQM)

66 Worldwatch Institute, Worldwatch Paper 166: Purchasing Power: Harnessing Institutional Procurement for People and the Planet, July 2003, LCM In Context – An Example

67 Worldwatch Institute, Worldwatch Paper 166: Purchasing Power: Harnessing Institutional Procurement for People and the Planet, July 2003, LCM In Context – An Example

68 LCM In Context – An Example Geoffrey Gaudreault, NPR

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