International Life Cycle Partnership To bring science-based life cycle approaches into practice worldwide UNEP/SETAC Life-Cycle Initiative Life Cycle Management Capability Maturity Model (LCM-CMM) Building Capacity for Sustainable Value Chains

QUICK TOUR OF LCM – CMM CONTINUAL LEARNING

LCM- CMM APPROACH Situation Analysis Competitive Context Maturity Assessment Product Life Cycle Scan (WHAT TO DO) (HOW TO DO) S TO W SWOT Analysis Improvement Plan Near term business objectives Long term org. development Action Learning Speed implementation Just enough analysis + just in time training

Assess performance against targets Capture lessons learned CYCLES OF LEARNING Plan Do Learn Act Communicate vision and provide necessary resources Identify improvement priorities Set quantified targets Action learning Defined processes Roles & responsibilities Training & development Embed new practices in management system Management Commitment Linked to business strategy Integrated into organizational routines Identify key gaps to be addressed in next cycle

ACTION LEARNING Directed by business manager Supported by LCM champion Training/ technical consultant Active learning Feedback from work outcome Accelerated implementation ACTIONABLE TASKS SWOT AnalysisSituation AnalysisImprovement Project

Inspections Corrective action Root cause QUALIFIED – Do No Harm Plan Do Learn Act Basic procedures to protect people and the environment Quantify outputs Set Targets Hazard ID Controls, procedures Emergency planning Roles & responsibilities Employee training Accountability Management Commitment Risk avoidance Legal compliance License to operate Identify key measurement gaps to define business case

QUALIFIED Key capabilities –Environmental awareness, hazard identification, root cause analysis, numerical literacy Business impacts –Legal compliance, license to operate, risk/ cost avoidance LCA Methodology –Data quality, process mapping (gate- to- gate) EMS Elements –Legal & regulatory requirements, environmental aspects, roles & responsibilities, operating controls, training, inspections, emergency response, incident investigation & corrective action

QUALIFIED Key Activities PLAN Inventory key waste streams and most frequent accidents. Establish baseline performance measures and set targets for improvement. Inventory toxic chemical uses. DO Conduct job hazard assessments & install procedures and controls to manage hazards. Characterize all waste streams. Implement procedures to ensure compliance activities are conducted as required. Implement inspections to reinforce required safety and environmental actions. Assess for potential incidents & identify necessary actions for response and containment LEARN Conduct emergency response drill. Review inspection findings and implement corrective action. Establish incident investigation process to drive to root cause. Conduct independent 3rd party compliance audit. ACT Establish emergency response plan. Establish employee awareness training program, including new employee orientation. Formalize operational controls and management systems for ongoing safety and environmental compliance Implement corrective action to address any findings from third- party compliance audit. Publicly report compliance with legal and regulatory requirements & progress toward improvement goals. Identify key information needs to drive next cycle of improvement

Management system audit Track KPIs against targets Process efficiency Improve operating margins “Eliminate waste” EFFICIENT Plan Do Learn Act Upgrade procedures to reduce impacts to lowest economically feasible level Aspects & impacts Energy & water use Chemical inventory Risk assessment Environmental costs Pollution prevention Process safety Management Commitment Organization Accountability Public reporting Identify performance gaps that require redesign/ innovation

EFFICIENT Key capabilities –Risk assessment, financial literacy & environmental accounting, quality improvement tools (e.g. statistical process control), cross- functional collaboration Business impacts –Process efficiency/ operational excellence, improved margins, reduced inventory & working capital LCA Methodology –Life cycle inventory, product system modeling (cradle- to- gate; gate- to- grave; attributional), impact assessment EMS Elements –Policy, environmental impacts, objectives & targets, organization & accountability, programs, management audits, external reporting (environmental)

EFFICIENT Key Activities PLAN Identify environmental & safety aspects and impacts of facility operations. Inventory energy uses. Compile a water balance for facility. Establish baseline performance and set targets for improvement DO Conduct a risk assessment of facility aspects and impacts & set priorities for improvement. Conduct pollution prevention/waste minimization projects as required to meet goals. Develop environmental accounting system to quantify costs of pollution and injuries. Conduct alternatives assessment for all uses of toxic chemicals LEARN Conduct management system audit of inspection process in reducing incidents. Define and monitor key performance indicators (KPIs) to assess progress toward targets. Review effectiveness of EH&S programs. Review adequacy of information system for supporting environmental accounting. ACT Draft policy and formalize environment, health and safety programs. Standardize measurements & establish quality assurance procedures. Integrate measurement requirements into information technology strategic planning. Integrate EH&S requirements into employee development programs. Define plan for substitution of toxic chemical uses with safer alternatives. Establish communication plan for public reporting of company performance

Annual program review Stakeholder feedback Create goods & services that improve human condition while continually reducing impacts and resource rqmts Top line growth New markets Innovative products EFFECTIVE Management Commitment Plan Do Learn Act Identify key policy barriers to sustainable business Value chain impacts Scope 1 & 2 GHG Water footprint Materiality matrix LCA Design for environment Chemical substitution Sustainability reporting – e.g. GRI (partial) GHG/ water footprint/ eco- labels

EFFECTIVE Key capabilities –Robust & user- centered design principles, systems thinking, multi- attribute decision- making, conflict resolution, inter- organizational collaboration Business impacts –Product & business model innovation, new markets & expansion of existing markets LCA Methodology –Interpretation & communication, cradle- to- grave modeling (consequential, scenarios), critical review EMS Elements –Annual management review, design for environment, supplier environmental management, stakeholder engagement, external reporting (CSR)

EFFECTIVE Key Activities PLAN Identify environmental & safety aspects and impacts of company’s value chain. Compile scope 1 & 2 GHG inventory for company. Estimate water footprint. Develop preliminary materiality matrix of stakeholder issues. Establish baseline performance and set targets for improvement. DO Conduct streamlined LCA for key product family. Use results to upgrade design manuals or implement eco- design idea(s) in new product development. Conduct design for environment pilot on product with key customer designed to enhance customer value proposition with superior environmental performance. Conduct process improvement project with strategic supplier(s). Complete project to substitute a toxic chemical use with a safer alternative. LEARN Conduct management review of LCM programs. Engage stakeholders to review company progress and assess their understanding/ acceptance of KPIs used to communicate progress Assess progress against toxic used reduction plan. ACT Update policy and extend environmental programs to cover full product life cycle system. Upgrade communication plan to ensure product marketing and public reporting aligned. Develop formal stakeholder engagement plan to inform strategic planning. Bring public reporting into compliance with GRI guidelines.

Balance sheet focus Capital preservation Sustainable prosperity Plan Do Learn Act Stakeholder review of performance ADAPTIVE Transform business model to support sustainable consumption & production Socio- economic profile Stakeholder engagement System innovation Public- private partnerships Management Commitment Sustainability mgmt. system Public policy reform Co- create new markets for enhanced well- being!

SUSTAINABLE CONSUMPTION & PRODUCTION WBCSD. (2010). Vision 2050: The new agenda for business