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Copyright © United Nations Environment Programme, 2007
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Society of Environmental Toxicology and Chemistry (SETAC).
ISBN: 978-92-807-2772-2
DTI/0889/PA
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Resumen ejecutivo
El viaje hacia la sostenibilidad requiere La GCV no es una herramienta única ni una actividades que puedan asegurar la mejora
que las empresas encuentren maneras metodología, sino un sistema de gestión que continua. Finalmente, el ciclo Planear-Hacer-
innovadoras para ser rentables y al mismo recolecta, estructura y disemina información Verificar-Actuar es recomendado, en línea con
tiempo extender las fronteras tradicionales relacionada al producto de diversos los sistemas de gestión internacional como
de su negocio para abarcar las dimensiones programas, conceptos y herramientas. Éste ISO 9001 e ISO 14001.
ambientales y sociales, lo que en otras incorpora aspectos económicos, ambientales
palabras es tomar en cuenta “la Línea y sociales de los productos, los cuales son Los autores seleccionaron para esta Guía
de Triple Base”, y para introducir el aplicados en cada una de las etapas del ciclo veintiún ejemplos, cuya selección se basó
“Pensamiento de Ciclo de Vida de Producto”. de vida de ellos. La organización debe ir en su relevancia. Estos ejemplos ilustran
más allá de los límites de sus instalaciones cómo las organizaciones empresariales están
La Gestión de Ciclo de Vida (GCV) busca y tener la voluntad de extender su alcance poniendo en práctica el pensamiento de ciclo
minimizar las cargas ambientales y socio de colaboración y comunicación a todas las de vida alrededor del mundo. Debido a una
económicas asociadas con el producto o partes interesadas y afectadas en la cadena necesidad de sistematización, los detalles son
portafolio de productos durante todo su de valor. limitados en este documento. Para mayor
ciclo de vida y cadena de valor. La GCV hace información acerca de cualquier aspecto
operacional en los negocios el pensamiento La GCV puede ser específicamente adaptada cubierto en esta guía el lector deberá visitar
de ciclo de vida y la sostenibilidad del y gradualmente introducida en cualquier las fuentes o direcciones de los sitios Web.
producto a través de mejora continua de los organización, incluyendo a las PyMEs. Las
sistemas de productos, así como también, organizaciones deben empezar con metas y
apoyando la incorporación de, por ejemplo, objetivos pequeños de acuerdo a los recursos
políticas integradas de producto. que poseen y volverse progresivamente
más ambiciosos a lo largo del tiempo. Para
La GCV es para organizaciones que ser exitosos se necesita un compromiso la
han expresado su deseo de producir o Alta Dirección y una participación activa
comercializar productos tan sostenibles como de empleados clave de los departamentos
sea posible para mejorar su imagen pública, relevantes en la organización.
incrementar la visibilidad y sus relaciones
generales con partes interesadas y afectadas, La GCV es un proceso dinámico y voluntario,
aumentar el valor ante sus accionistas y y la mejor manera de implementarlo es paso
estar mejor informados y preparados ante a paso. Se debe dar especial atención a las
contextos legislativos cambiantes.
Contents
Forewords by UNEP and SETAC 8-9
7
Foreword by UNEP
The desire to realise our vision is importance and scope of intervention work on cleaner production and eco-
driven by human nature. that different areas have in the efficient industrial systems. It is a next
organizations, and a step-by-step step in broadening the horizons of
The collective vision and desire of guide, adaptable to enterprises of pollution prevention; a process which
the UNEP/SETAC Life Cycle Initiative any size, to support the integration has gone from a focus on production
network is the broad-based application of Life Cycle Management in the processes (cleaner production), to
of Life Cycle Thinking; making this management process. products (Design for Sustainability)
a reality requires transferring the and then to product-systems
vision and desire to the key groups Life Cycle Management is for (incorporating transport logistics,
that could facilitate a worldwide companies that are ready to expand end-of life collection and component
implementation of Life Cycle their traditional focus on the reuse or materials recycling) and to
Approaches: consumers; small and production process by incorporating sustainable innovation (new products
medium sized enterprises; key growth various management aspects and product-systems and enterprises
sectors in emerging economies; associated with a product over its designed for win-win solutions for
natural resource extraction sectors; entire life cycle. This guide will assist business, the environment and
civil society in developing economies; in the systematic implementation people). It also contributes to the
and leading companies, organizations of Life Cycle Approaches resulting 10-year framework of programmes
and governments. in continual improvements for the mandated by the World Summit on
organization and a contribution Sustainable Development in 2002.
This publication, “Life Cycle towards sustainable development in
Management - a business guide to society. We invite practitioners to use
sustainability”, is the result of a joint this guide in their quest for new ways
effort of key experts and friends of to improve the overall management, Achim Steiner
the UNEP/SETAC Life Cycle Initiative long term benefits and sustainability Executive Director
and incorporates almost 20 years of of your businesses. United Nations Environment Programme
experience in Life Cycle Assessment
as well as in other recognized This publication is a contribution
approaches such as ISO 14001, to UNEP’s activities to promote
eco-design and ecolabels. This guide more sustainable consumption and
provides a series of key definitions production patterns. The growing
and principles related to Life Cycle attention to life cycle issues is a
Management, a description of the natural outcome of decades of UNEP
8
Foreword by SETAC
During the last couple of decades, Saur as Chairman and Allan Astrup as a major contribution to the present
society has developed a better Jensen as Convener. Since then, LCM publication.
understanding of human influence has been a major topic at SETAC
on the environment. As we entered annual conferences in Europe and Life Cycle Management: A Business
the twenty-first century, the case for North America. The SETAC Working Guide to Sustainability outlines
improved sustainable performance Group has convened 8 meetings practical examples of product
of products became more compelling during the years since its inception, sustainability and life cycle thinking
and more deeply understood. and the report Life-Cycle Management and describes useful ways to
was published by SETAC Press in 2004 implement LCM. We hope this
More and more companies have now with David Hunkeler as the lead editor publication will result in LCM being
embraced Life Cycle Management used to take action and to drive
(LCM) as a unique and systematic The work in SETAC was also the basis market transformation forward.
framework of concepts, techniques, for the first International Conference
and procedures with the goal of on Life Cycle Management LCM2001 I would like to thank all of the
creating more sustainable products held in Copenhagen, Denmark, 27-29 LCM Programme participants,
and businesses. August 2001 and later conferences the International Life Cycle Panel
LCM2005 in Barcelona, Spain, 5-7 members, and the Initiative’s
Members of the Society of September 2005 and the coming Executive Committee for their
Environmental Toxicology and LCM2007 in Zürich, Switzerland, 27-29 extremely valuable contributions,
Chemistry (SETAC) have been August 2007. comments, and suggestions.
pioneers in developing the scientific
background for LCM. In 1998, the first Therefore, it was clear that LCM
SETAC Working Group on Life Cycle should be an important part of the
Management was formed with Konrad UNEP/SETAC Life Cycle Initiative. A
LCM Programme was established with
five Task Forces. Several workshops G. Allen Burton
were held, and many working President. 2006-2007
documents were discussed and Society of Environmental Toxicology and
Chemistry
finalised in the first phase. Especially
important was the development of a
“Background Report on a LCM Guide”
9
Sustainability and Life Cycle Thinking
10
Sustainability and Life Cycle Thinking
1 2 3
• Cleaner production processes Resource savings/Margins No Some Significant
Benefit Benefit Benefit
11
Sustainability and Life Cycle Thinking
12
Sustainability and Life Cycle Thinking
Life cycle thinking expands the In each life cycle stage there is
established concept of cleaner the potential to reduce resource
consumption and improve the
SCA Sustainability Policy
production to include the complete
product life cycle and its sustainability. performance of products. In order “SCA assesses the environmen-
Source reduction in a product life to succeed every department in the tal impact of its products during
cycle perspective is then equivalent to organization and all of the important their various life cycle stages
design for sustainability principles, and stakeholders in the product chain have and includes suppliers and sub-
to be involved as will be discussed later contractors in this process”
what is called the “6 RE philosophy”
in this guide.
as shown below: SCA Environmental and Social
Report 2005
• RE-think the product and its • RE-use. Design the product www.sca.com
functions. For example, the for disassembly so parts can
product may be used more be reused
efficiently Stora Enso Sustainability
Policy
• RE-pair. Make the • RE-duce energy, material ”To minimise our impact on
product easy to repair e.g. consumption and socio- the environment, we consider
via modules that can easily economic impacts a life cycle approach and use
be changed throughout a product’s applicable control technologies”.
life cycle Stora Enso Sustainability Report, 2007
www.storaenso.com
13
Sustainability and Life Cycle Thinking
Consumers Producers
Communication and
Retailers Transporters
Collaboration
14
Sustainability and Life Cycle Thinking
For enterprises, a challenge is to make Most importantly, existing supply of useful information. Producers often
linkages in the product chain in such chain management practices will decrease the number of suppliers
a way that there is focus on both the be clearly enhanced by such an they deal with establishing closer
environmental optimisation of the approach. Firms are increasingly and more collaborative relationships
material flow in the supply chain; requesting information from suppliers and improve risk sharing amongst
and on the customer’s expectations on materials used in production and them. This is particularly true in
regarding environmental and social the systems they are using to track established industries such as the
issues in the value chain. and manage their environmental automotive and aerospace sectors,
impacts. As supplier firms receive where a contraction in the number
An organization’s procurement policies these requests, they in turn pass of manufacturers has been observed
and procedures are a common and them along their supply chain. An over the past two decades. The
effective gate by which life cycle organization that is unsure of how or complexity of the product chain
management can enter into the firm. where to begin can use an effective is likely to decrease as this trend
Working with suppliers and supply procurement policy to learn and progresses. Despite decreasing
chain issues is rapidly increasing as benefit from the efforts of other complexity, firms are out-sourcing the
an important strategic consideration. firms in the chain. Alternatively, assembly and design of components,
Traditionally, enterprises manage firms who are leading can improve to full systems more as a rule than an
suppliers in order to optimize the performance of up- and down- exception.
the supply chain, track flows of stream suppliers by collaborating on
information, materials and funds, programs, tools and efforts. Thus, Present trends in management
manage the logistics of supply and the understanding of environmental approaches indicate more focus on
distribution, minimize cycle times and impacts through the supply chain a problem-oriented and project-
costs and to integrate processes and can extend into other parts of the organized cooperation; the later
functions along the supply chain. A organization leading to a more often referred to as ‘the matrix
Life Cycle Management system is for comprehensive and integrated life organization’. Expanding the
continuous improvement based on cycle management approach. organization to encompass suppliers
a life cycle perspective; thus, supply and customers, as well as other actors
chain management practices can be This comprehensive approach might in the product chain, will contribute to
effective entry gates for life cycle also serve to align the improvements the harvesting of potential benefits of
management. in the chains and ensure the exchange life cycle cooperation.
15
Sustainability and Life Cycle Thinking
The principles of the UN Global Compact can be used throughout the life cycle to promote Corporate
Environmental and Social Responsibility
The UN Global Compact was launched in 2000. It is a purely voluntary initiative for the business community
to help promote sustainable development through the power of collective action. The Global Compact
seeks to promote responsible corporate citizenship so that business can be part of the solution to the chall-
enges of globalization. Today, many hundreds of companies from all regions of the world, and international
labour and civil society organizations are engaged in the Global Compact, working to advance ten universal principles
in the areas of human rights, labour standards, the environment and anti-corruption.
www.unglobalcompact.org
16
Sustainability and Life Cycle Thinking
Tailings
Transportation Civil Works Exploration Perforation Drilling Blasting Extraction Concentration
Disposal of
Suppliers INMINSUR Waste
Antapite has supported the implementation of environmental management systems (EMS) by its 10 suppliers and
furthermore it has a “supplier assessment policy”, which requires compliance with at least the following criteria:
compliance with the law, attention to health and security aspects of employees or sub-contractors, positive impacts
on the neighborhood, and minimum pollution of water courses. The implementation of an extended EMS in Antapite
(INMINSUR) and its 10 suppliers, has lead to the following results along the Life Cycle:
• Less utilization and consumption of: explosives (then less air and dust emissions), water, and consumption and
fuel for the workers transportation (then less air emissions and waiting times)
• Less generation of construction wastes (e.g. rests of cement)
• Non use of toxics in the exploration stage
• Controlled disposal of sludge from exploration processes
• Fewer accidents in the mine site
www.buenaventura.com
17
What is Life Cycle Management?
18
What is Life Cycle Management?
19
What is Life Cycle Management?
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declarations, LCA data, product Figure 2.1. Examples of green/sustainable public procurement
environmental performance guidelines that can also be used by private organizations.
indicators, or product profiles.
• Communication with public Ecolabels in India
authorities via product information In order to increase consumer awareness, the
schemes and green public Government of India launched the ‘Ecomark’ scheeme
procurement guidelines. in 1991 for easy identification of environment-friendly
• Communication with the public, products.
consumers and retailers using
product brochures and various The criteria follows a cradle-to-grave approach, i.e. from
ecolabeling systems and raw material extraction, to manufacturing, to disposal.
information campaigns. The ‘Ecomark’ label is awarded to consumer goods which meet the specified
environmental criteria and the quality requirements of Indian Standards.
• Communication with suppliers,
including SMEs, using company An earthern pot has been chosen as the logo for the Ecomark scheme in
codes or manuals of conduct, audit India.
or supplier evaluation systems. www.envfor.nic.in/cpcb/ecomark/ecomark.html
20
What is Life Cycle Management?
Tools and
The organization such as Systems and
• Life Cycle Assessment (LCA) Procedures, such as
can also initiate
• Life Cycle Costing (LCC) Life Cycle • Communication
different • Cost Benefit Analysis (CBA) • Stakeholder Engagement/ Product Panel
Management • Eco-labelling
programs to • Material and Substance Flow Analysis (MFA/ SFA)
• Certification
21
Life Cycle Management in Practice
22
Life Cycle Management in Practice
for product sustainability as an the broader corporate management integration of sustainable performance
opportunity to achieve these goals structure. concerns.
and reduce costs. Leading companies
will undertake initiatives to increase An integrated management system Life Cycle Management offers a
market share and enhance the – covering quality, environment and framework that allows management
potential for product innovation as health & safety – with policies, goals, to organize and align the various
can be seen in the 3M case. More performance measures and a strategic applied concepts and tools in such a
conservatively, intrinsic factors will plan that supports continuous way as to exploit the synergies and
include reduced penalties and risks. improvements will be a driver for interrelations between them.
23
Life Cycle Management in Practice
24
Life Cycle Management in Practice
Coordination and
Capacity Building
CSR and
Communication Sustainable Production
Sustainability and Distribution
and
Environment
Stakeholder Production and
Relations Distribution
Life Cycle
Sales and Management Product
Marketing Development
Marketing of
Sustainable Design for
Products Sustainability
Economy
Purchasing and Finance
25
Life Cycle Management in Practice
Such departments are typically The electronics giant SONY has developed a comprehensive system to
responsible for reporting integrate environmental responsibility into its business strategy and product
developments within environmental design. A Group Environmental Vision sets out the company’s long-term
and sustainable policy and they can aspirations, and the “Green Management” group’s environmental action
provide valuable inputs through plan defines the mid-term targets required of each business division.
training of employees in the other Divisions must establish and implement annual business plans which
departments. However, it is crucial incorporate environmental considerations. Explicit targets have been
that the whole company is motivated established such as to reduce product weight and to increase their recycled
and speaks ‘the same language’. material content.
Most small and medium-sized Reduction of the environmental impacts of products requires life cycle
enterprises (SMEs) do not have a assessment from manufacture of parts and products, to transport, to use
sustainability department nor an by customers, and to final disposal. SONY has developed a system to
environmental or quality department clarify the environmental impacts of products throughout their life cycle.
to take care of the necessary This draws on data relating to product information, parts configurations,
coordination of an LCM initiative. product transport conditions and other factors. Product design divisions
In this case a cross-organizational can estimate CO2 emissions at each stage of the life cycle. This enables
or cross-functional team with a SONY to identify products and stages with high environmental impacts,
representative from each relevant clarify improvement priorities and prepare targets. A product environmental
function can act as coordinator and data collection system gathers this data and allows SONY to monitor their
at the same time make sure that product’s environmental impacts.
everybody has the necessary tools
and materials to inspire and carry out
the initiative. www.sony.net
26
Life Cycle Management in Practice
27
Life Cycle Management in Practice
28
Life Cycle Management in Practice
opportunities for improvement of answering machines shifts improvement within the different life
environmental and social performance to an electronic answering cycle stages with special attention to
along with other criteria are identified, service delivered by the environmental impacts.
as well. Technical aspects, economy, phone company.
design, quality, etc. are still crucial A380 Designed to be Greener
to the development of a product, Based on a definition of the product
system, the environmental and socio- In 1991 Airbus presented a vision
but these aspects may be combined
economic aspects of a product are for the future - an aircraft that
so that environmental and social
assessed from two different angles: would meet the demands of the
considerations are given more weight,
21st century with an ultra high
for example:
• A product life cycle passenger capacity.
• Move environmental and perspective with assessment Today the vision has become
social considerations higher of the environmental and reality. In 2007 the first super
up on the design criteria list. socio-economic impacts jumbo aircraft with a standard
of a product system with seating capacity of 555
• Develop a new product with
tools such as Life Cycle passengers began operating.
the starting point of social,
Assessment (LCA) or Life The A380 has been designed in
ethical and environmental
Cycle Costing (LCC). order to optimise environmental
considerations - for example
performance at each stage
a new clothes collection • A stakeholder perspective of the aircraft life cycle. In
based on organic cotton and with assessment of particular, the high passenger
fair trade. impacts based on the capacity with a 2-deck design
stakeholders’ view such and the use of new light
• Make the existing product
as legal requirements, weight materials has decreased
more sustainable, for
market demands, and the energy consumption per
example by replacing an
competitors’ products. passenger dramatically. The A380
environmentally harmful
Quality Function Deployment is expected to use less than 3
substance with a less
(QFD), interviews, etc. are litres of fuel per
harmful substance.
commonly applied tools. 100 passengers
• Shift from producing kilometres.
The radar plot (Figure 3.2) is an
a product to supplying example of an overview of ideas for www.airbus.com
a service - the sale of
29
Life Cycle Management in Practice
To be considered a Philips Green Flagship, a product must first go through divisional EcoDesign procedures. Next,
the product or product family is investigated in at least three of the Green Focal Areas (including energy). Based on
this analysis, the product or product family must be proven to offer a better environmental performance of more than
10% in one Green Focal Area with a Life Cycle Score on par (+/-5%), calculated with Philips’ EcoScan tool.
During this investigation, a product or product family is compared with its predecessor or closest commercial
competitors. When compared with more than one competitor, the results are expressed as an improvement compared
to the average of the competitors’ performance in the investigated focal areas. So while a product may be ‘green’,
only Philips top EcoDesigned products achieve Green Flagship status.
An example of one of the more than 200 Philips Green Flagships on the market is shown on the picture above. Philips
CosmoPolis street lighting systems are twice as efficient to run as older mercury vapor lamps. CosmoPolis systems
provide a significantly better quality of light and contain industry leading low levels of mercury.
www.philips.com/sustainability/report
30
Life Cycle Management in Practice
ranking institutions may also have in regards to the environmental turing ofto map all environmental re
andh socio-
waste per year as part of the manufac- t
u
diapers, cotton swabs,
Environmental Cost
y
Johnson & Johnson
t
an impact on driving organizations impacts of their operations and economic aspects ofareas the organization,
Fu
P e
Reduction and Avoidance By viewing this waste as potential raw many as a result of our
efforts to minimize
o p l e
toward sustainability and Life Cycle products. Liability forJohnson
exceeding its suppliers
possibilities for reuse, and customers to ensure
l t h y
Management. Traditionally, investors local air quality emissions limits, for lifeto manufacture
cycle insoles information iswhen
available for
cycle costs avoided as a result of such as using sanitary napkin manufac- greater than what we
e a
�
turing waste predicted the Next
projects implemented by facilities
Generation Goals were H
look for funds with calculated risks example, can result toTotal
inmeetlife
athecycle
bad image, decision making at all levels at all
H
Next Generation Goals. for shoes, diaper waste to create brake instituted in 2000.
e
a
�
and some level of predictability. fines and even licensing restrictions time.
h y
costs of purchasing, transporting, swab waste to produce plastic wood. P l a n
storing, treating and disposing Since 1996, the facility has increased
a comprehensive approach to
strong business case for its environ- 17 percent. Through selective waste
mental goals and programs. reduction, recycling and reuse, the
understanding and managing their Johnson & Johnson tracks the life cycle costs avoided as a result of projects
For 2003, total cost savings from
avoidance and cost reduction
facility has realized $1.1 million in cost
savings in 2003 alone.
environmental and social impacts implemented by facilities to meet the Next Generation Goals.
projects exceeded $155 million.
Thailand
will be viewed as a high-risk Total life cycle costs include
Johnson & Johnson Asean Limited,
2003 Environmental Costs & Cost Savings
investment. This trend can be seen
Bangkok, Thailand, has taken an active
Jones Sustainability Index applying Through this successful redesign, Toxic NPO Management 0.4 1.4
economic, social and environmental material use, packaging Management Systems 1.7 0.04
criteria to assess and rank the saved more than $4.1 million overall Governance
Consultants
2.0
4.2
0
0
savings from priorfromyears,
in packaging and raw material costs
a strong businessLtda.
case for
Johnson & Johnson Indústria e Comércio
Insurance companies are also in São José dos Campos, Brazil, Manufacturing Materials
Raw Materials – 84.9
www.jnj.com
31
Life Cycle Management in Practice
Purchasing
When organizations purchase raw Purchasers are able to encourage Communication may be broadened
materials, semi-products, goods and environmental considerations at their to include dialogue and collaboration,
services, they may use a supplier suppliers via questions and demands. where the enterprise contributes ideas
evaluation system, asking suppliers to A purchaser may request the following and constructive criticism regarding
provide specific information such as information: improvements at the supplier’s end.
life cycle data and social responsibility The purchaser may take on the role of
in addition to the documentation of • Overview of the supplier’s a critical, environmental and socially
product safety. Those requirements environmental and social conscious customer with numerous
are further imposed on the sub- initiatives as well as demands, or the role of a collaborative
suppliers in the product chain. policies; partner working together on creating
Rather than playing ‘catch-up’ or mutual advantages associated with
just reacting to demands, firms have • Documentation of the the product’s development.
the opportunity to use a proactive
impacts from the previous
life cycle approach to manage their
environmental impacts together with life-cycle stages;
more traditional cost-driven supply
• Overview of working
chain management efforts.
conditions at suppliers Suppliers of IKEA Must Take the
The purchaser has an important and sub-suppliers; and/or IWAY to Sustainability
role in selecting the optimal raw
• Specific environmental IKEA products shall be
materials and products for production.
and social data regarding manufactured under acceptable
Consequently, a buyer requires some
working conditions by suppliers
tools, which integrate environmental raw materials, secondary who take responsibility for the
and social considerations together materials, etc. environment. For that reason, in
with other factors such as price,
2000 the company established a
quality, and functionality.
code of conduct “The IKEA Way
on Purchasing Home Furnishing
Products” (IWAY).
IWAY specifies the minimum criteria
for the supply chain and what
32
Life Cycle Management in Practice
suppliers can expect of IKEA. IKEA IKEA has few factories of its own. also employs independent auditors to
suppliers are themselves responsible Instead production takes place at carry out random checks and verify
for ensuring that their own suppliers around 1,600 suppliers in Europe, Asia working methods and results.
also fulfil IWAY criteria. and North America, frequently in low-
IKEA’s work with social and
cost countries. By helping suppliers to
There are rules for working conditions, environmental issues is an ongoing
live up to the IWAY criteria, IKEA also
minimum wages, overtime rates, trade process. The many small steps
helps to raise standards and increase
union representation rights, waste forward are an expression of
prosperity in developing countries.
management, chemical management, IKEA’s aspiration for continuous
and emissions to air and water. IKEA has specially trained inspectors improvement.
IKEA will not tolerate child labour, who visit suppliers all over the world.
discrimination or the use of timber They continually check that IWAY
from intact natural forests. criteria are met, and help suppliers
who are experiencing difficulties. IKEA
www.IKEA-goup.ikea.com
33
Life Cycle Management in Practice
34
Life Cycle Management in Practice
www.steelcase.com
35
Life Cycle Management in Practice
Stakeholder Relations
Companies do not operate alone. Some of the possible benefits and To learn more about “the principles of
Employees as well as suppliers and outcomes of stakeholder collaboration systematic stakeholder engagement”
customers are obvious stakeholders and communication are listed in please consult “The Stakeholder
– without whom the enterprise Figure 3.4. However, it is not always Engagement Manual” of UNEP
would not exist. In addition, financial easy to measure the benefits of www.unep.fr/outreach/home.htm
institutions and public authorities also engaging in closer collaboration and
have a crucial role to play as primary communication with stakeholders.
stakeholders.
ake h old e rs
Stakeholders are in principle any party da r y St
Se con
that has an interest (“stake”) in a Environmental and Social
Non-governmental Organizations
company or its products. As illustrated Int
er
/ s ders Or gove
in Figure 3.3 several other secondary rce ion takehol
m me ciat r i m a ry S ga
niz rnme
o P ati nt
stakeholders exist throughout the Co Ass on al
de s
product life cycle. How important Tra
s/
plier ses Emp
Sup Busines loye
these stakeholders are to a company st re a m es
Up
will depend on the specific case and
Research Institutes /
context.
Associations
Universities
Labour
or
st
th
o
Au
m
ic
s
bl
Pu
36
Life Cycle Management in Practice
Tacit Knowledge
Good Corporate Reputation
Acquirement
in the End...
Tangible Outcomes
Figure 3.4: Possible benefits and outcomes of Long-Term Stakeholder Value Created!
stakeholder collaboration and communication
(adapted from Wuppertal Institute, 2004)
37
Implementation of Life Cycle Management
nt
management.
ge
Se
ion ga
the olicies -
Ta ne et
t u or
he
at en
ke w ail
et
p ed
m
er o be
cip et
it goa ed
h
g
to ls st
w t
of ants
pa ze –
p
th an ud
management areas:
e
Set
iew d w
rti
ne d a s,
i
an an
v
er an
xt cti etc
ov s
• Policy, objectives and targets – on i
Or
le on .
1.
d
ve s,
y t i re
rve iza whe
ie
l-
r-
2.
e go
N
min
• Monitoring and registration plan
systems
• Documentation and reporting
K
EC
as well as communication D 5.
CH Ma
along the product life cycle
O
– p ke e
ut nvir
7.
the on
pla men
ne s a the
ni t
ed nd
nto al an
as icie te
ed
es ol a
ion ocia
an
ct ise eva
po
pro
l s d r se
– d ul
ve
Do-Check-Act Cycle” is applied as
na an evi
m en
oc ts
r
ts
za c d
tio e
en
t
a
the
Ev
38
Implementation of Life Cycle Management
Policies
Life Cycle Management should the manufacturing level, for demands. It should also answer
become part of an organization’s instances, in materials selection such questions as: Where are we in
policies so that its importance rings and acquisition, use of product, comparison to our competitors? Do
through all levels of the organization. distribution and end-of-life – based we have the necessary information
A policy should be visionary with a on a screening of the product’s on supplied parts and materials?
long-range focus, while also being performance. Are environmental quality and social
realistic and concrete, grounded concerns of our customers being
• Product profiles to the market.
by its ambition level. Setting goals fulfilled?
The environmental and social
according to the level of ambition
profile of the product can create
ensures conformity between policy When the policy has been set, the
competitive advantages. However,
and actions. next steps are to organize the effort
these improvements should be
and set up specific targets.
supported by proof, such as a
There are at least three different level
life cycle assessment, to avoid
of ambition:
‘greenwashing’. Quotes from the Environmen-
• Internal readiness and tal Policy of Konica Minolta
commitment to continuous These ambition levels help an
“The Konica Minolta Group aims
improvements. This level organization to understand where to
to promote sustainable develop-
signifies awareness that begin. A less experienced organization
ment and profitable growth. We
environmental and social can easily ‘graduate’ to higher
integrate environmental, econom-
improvements can be made using ambition levels as knowledge and
ic and social perspectives into our
management frameworks such familiarity associated with putting
business strategies...
as ISO 9001, ISO 14001 and/or plans into action are achieved.
corporate social responsibility Consideration for the environment
(CSR), and that a commitment Furthermore, the policy must provide throughout the entire life cycle of
to improvements of product sound strategies and objectives for products and services...”
performance is the first step improvements in all relevant stages Konica Minolta Holdings Inc., 2006
towards LCM. from cradle to grave. The definition President and CEO Yoshikatsu Ota
of the product profile should take
• Life cycle improvement of
into account legal requirements, an
products. An organization
evaluation of the impacts along the
understands the value of www.konicaminolta.com
life cycle and other interested parties’
addressing its products beyond
39
Implementation of Life Cycle Management
Organize
- Commitment and Cross Functional Teams
As noted earlier, top management of people from purchasing, product Implementation in the organization
must be an integral part of the development and marketing. requires the allocation of appropriate
initiative, with different parts of the resources, assignment of
organization participating in the For small or medium sized (SMEs) responsibilities for the different tasks,
process. organizations a single but permanent building expertise based on practical
cross functional team might be the experience as well as procedures and
Responsibility within a coordination best solution, but it depends on the instruction to ensure that activities are
group shopuld lie with a team leader, specific structure and culture of the running properly.
who is responsible for ensuring that organization.
the group functions, meetings are
arranged, minutes are taken, etc.
The members of the coordination
group should be selected so that all Cross-functional teams
relevant departments or functions
are represented, including top FORD of Europe uses a Product Sustainability Index (PSI) to translate
management, product development, sustainability aspects to the organization of vehicle product development.
production, product distribution, sales, PSI limits the scope of those key environmental, social and economic
marketing, and purchasing. characteristics of passenger vehicles that are controllable by the product
development organization. PSI considers environmental, economic and
Cross functional teams may be social aspects - based on externally reviewed LCA and Cost of Ownership/
established in order to work on Life Cycle Costing (LCC), externally certified aspects (allergy-tested interior)
specific issues. Some groups are and related aspects such as sustainable materials, safety, mobility capability
permanent in order to secure and noise. The tool is an easy to use spreadsheet which requires only
continuous improvement of the one hour of training before it can be used by engineers. PSI has been
environmental performance, for integrated into the existing decision-making process. It allows non-experts
example, an energy group involving to manage key environmental, social and economic aspects in the product
employees from production and development. This allows mainstream functions to take ownership of
product development. Other groups sustainability and assigns accountability to those who can really decide on
could be ad hoc in order to implement changes affecting the vehicle’s sustainability performance.
a specific task, e.g. a supplier
evaluation scheme with involvement
Source: Wulf-Peter Schmidt, FORD www.ford.com
40
Implementation of Life Cycle Management
Survey/Review
- Overview of Status
An initial review of an organization’s
products or services is a good way
to identify where and how it will
initiate the LCM process. The review
EN TAL & SOCIAL
should cover information pertaining
O NM IM
PA
to a particular product as well R
as the knowledge related to the VI CT
S
market and external stakeholders, EN • Life cycle stages – where are the most
important environmental and social impacts?
including pressure groups. Extending
this to cover suppliers, business • Technology – is there a new technology avail-
able or being developed that can reduce the
associations, authorities, retailers, impacts?
research institutions, etc. ensures that
important aspects are not missed. • Do the competitors have the same impacts
- and how do they address them?
Furthermore, a standard like ISO • Product chain
14031 on environmental performance actors – are suppliers,
MARKET/COM
sustainability perspective economic • Which is the main pressure • Value – what advantages
O
and social group - and what are their are achieved by adding
C
H
IA
an extra product
O
S concerns and demands ND
quality?
of consumers in IT
export markets? IO
S N
Figure 4.2: Aspects of a survey.
41
Implementation of Life Cycle Management
42
Implementation of Life Cycle Management
43
Implementation of Life Cycle Management
Report
- Document Efforts and Results
With regard to the commitment of and environmental initiatives, may Internal as well as external
management and employees, it is be redirected to be more product- communication is a necessary
crucial that the results of the LCM oriented, thus providing a good forum precondition for achieving the benefits
efforts are documented, and that to document results and make them of LCM initiatives.
they are made publicly available. visible to the public. Product-oriented
Such documentation gives credibility environmental reporting may address
when answering inquiries from some of the following:
customers, suppliers, etc. The form • To what degree has the energy consumption of the product
of documentation is completely through the entire life cycle stages been reduced?
dependent upon the ambition level in
the organization. It is advantageous • How much of the product can be recycled?
for organizations to have some insight
into the kind of environmental and • To what degree and how has distribution and transport been
social impacts that the stakeholders optimized?
prioritise, so that communication can
be tailored to meet these demands. • Which social improvements have been carried out affecting
Some ideas can be adopted from the relevant stages of the life cycle? s
gr es
ta in tern
atio rt
S us s In R e po
• Etc.
and lity
a Br sibi
pon
quit Res
Chi ate
r por
2 Co
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challe pharm betes car
05
value workplac
s in act e
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perfoR
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rman
ida highli I ce C
consol
2005
T G
R A R
spotlig E I N O
access ht
( to healton
P U
O P
ess eth n ME
I L
ics NT I T
)
Y
44
Implementation of Life Cycle Management
Such an evaluation, conducted at least Remember that the idea behind • Conducting internal audits to
once a year, makes an excellent forum a step-by-step approach is determine and provide information
for adjusting an organization’s policy ensuring the interaction between to management on whether LCM
so that it is consistent with the actual developing knowledge of a product’s conforms to plans, has been
efforts. After such an evaluation an environmental and social impacts, properly implemented, as well as,
organization may decide to continue market demands, etc. and the to identify improvement options.
at the same ambition level until the implementation of concrete product-
internal commitment and readiness oriented improvements.
45
Implementation of Life Cycle Management
46
Further Reading and References
> Jensen A A; Remmen A (eds) (2004): Background Report for a UNEP Guide to Life
Cycle Management. UNEP DTIE.
www.uneptie.org/pc/sustain/lcinitiative/home.htm
> Environmental Life Cycle Management: A Guide for Better Business Decisions.
Ottawa: Environment Canada, 1997.
Design
> Crul M R M; Diehl J C (2006). Design for Sustainability - A Practical Approach for
Developing Economies. UNEP DTIE and TU Delft.
Other
> ISO 14040:2006, Environmental management – Life cycle assessment – Prin-
ciples and framework. International Organization for Standardization.
> The Innovation High Ground: How Leading Companies are Using Sustainability-
Driven Innovation to Win Tomorrow’s Customers. Arthur D. Little Global Management
Consulting, 2005.
> Wuppertal Institute/triple innova (2004): High 5 - Communicating your Business Suc-
cess through Sustainability Reporting - A Guide for Small and Not-So-Small Busi-
nesses. Global Reporting Initiative.
> Elkington J (1997): Cannibals With Forks: The Triple Bottom Line of 21st Century
Business. Capstone, New Society.
47
Glossary (of concepts and tools mentioned but not explained in the text)
Cleaner Production Assessment (CPA): Cleaner Production Assessment is structured methodology to systemically identify and
evaluate Cleaner Production opportunities and facilitate their implementation.
Cost of Ownership: A financial estimate designed to help consumers and enterprise managers assess direct and indirect costs related
to the purchase of any capital investment.
Cost Benefit Analysis (CBA): Estimates and totals up the equivalent money value of the benefits and costs to the community of
projects to establish whether they are worthwhile.
Cumulative Energy Requirements Analysis (CEPA): Quantify the primary energy requirement for products and services in a life-
cycle perspective.
Eco-efficiency Analysis: Eco-efficiency can be defined as maximizing the economic efficiency while minimizing the impact on the
environment.
Environmental Impact Assessment (EIA): The process of identifying and evaluating the consequences of one economic activity
on the environment and, when appropriate, mitigating those consequences. EIA is used as an aid to public decision making on larger
projects.
Environmental Product Declaration (EPD): Declaration of a product’s performance with regard to different environmental parameters
during the products life cycle either cradle-to-grave or cradle-to-gate.
Environmental Risk Assessment (ERA) is the examination of risks resulting from technology that threaten ecosystems, animals and
people.
Green (or Sustainable) Procurement: “A concept for reducing the environmental burden by buying products with a reduced
environmental impact compared to similar products.
Input-Output Analysis: An economic tool used to measure impacts of an existing, proposed, or anticipated business operation,
decision, or event on the economy.
Life Cycle Assessment (LCA): “Compilation and evaluation of the inputs, outputs and the potential Environmental Impacts of a
Product System throughout its life cycle”.
Life Cycle Costing (LCC): “All costs associated with the system as applied to the defined life cycle”.
Material and Substance Flow Analysis (MFA/SFA): “Mapping of the total use, recycling and disposal of a specific material or
substance in a defined region.”
Material Input per Unit Service (MIPS): A measure of the Environmental Impact potential of goods defined as the weighted cradle-
to-grave material inputs per units of services obtainable.
Product environmental performance indicators: Describe products impacts on living and non-living natural systems, including
ecosystems, land, air and water.
Product-Oriented Environmental Management Systems (POEMS): Environmental management system focusing on the life cycle
of the products and intermediates that passes through the company’s operations.
Product Stewardship: A product-centered approach to environmental protection that calls on those in the product life cycle
(manufacturers, retailers, users, and disposers) to share responsibility for reducing the environmental impacts of products.
Quality Function Deployment (QFD): A method for the systematic analysis of “the voice of the customers” and relationships between
these quality requirements and the product structure.
Supply Chain Management: An information management tool, which integrate procurement, operations, and logistics from raw
materials acquisition to customer satisfaction.
48
About the UNEP/SETAC Life Cycle Initiative
The Global Life Cycle Initiative was established by UNEP and SETAC. Among other
things, the Life Cycle Initiative builds upon and provides support to the ongoing
work of UNEP on sustainable consumption and production, such as Industry
Outreach, Industrial Pollution Management, Sustainable Consumption, Cleaner and
Safer Production, Global Reporting Initiative (GRI), Global Compact, UN Consumer
Guidelines, Tourism, Advertising, Eco-design and Product Service Systems.
The Initiative’s efforts are complemented by SETAC’s international infrastructure and its
publishing efforts in support of the LCA community.
The Life Cycle Initiative is a response to the call from governments for a life cycle
economy in the Malmö Declaration (2000). It contributes to the 10-year framework
of programmes to promote sustainable consumption and production patterns, as
requested at the World Summit on Sustainable Development (WSSD) in Johannesburg
(2002).
Our mission is to develop and disseminate practical tools for evaluating the
opportunities, risks, and trade-offs associated with products and services over their
entire life cycle to achieve sustainable development.
The programme’s aim is to put life cycle thinking into practice and improve the
supporting tools through better data and indicators, by hosting and facilitating expert
groups, and disseminating their work through webbased information systems.
> The Life Cycle Management (LCM) programme creates awareness and improves the
skills of decision-makers by producing information materials, establishing forums for
sharing of best practices, and carrying out training programmes around the world.
> The Life Cycle Impact Assessment (LCIA) programme increases the quality and
global reach of life cycle indicators by promoting the exchange of views among
experts whose work results in a set of widely accepted recommendations.
> The Life Cycle Inventory (LCI) programme improves global access to transparent,
high-quality life cycle data.
49
Sponsors of the UNEP/SETAC Life Cycle Initiative
About SETAC
The Society of Environmental Toxicology and Chemistry (SETAC) is a professional society, in the form of a
not-for-profit association, established to promote the use of a multidisciplinary approach to solving problems
of the impact of chemicals and technology on the environment. Environmental problems often require a
combination of expertise from chemistry, toxicology, and a range of other disciplines to develop effective
solutions. SETAC provides a neutral meeting ground for scientists working in universities, governments, and
industry who meet, as private persons not bound to defend positions, but simply to use the best science
available.
Among other things, SETAC has taken a leading role in the development of Life Cycle Management (LCM)
and the methodology of Life Cycle Assessment (LCA). The organisation is often quoted as a reference on
LCA matters.
50
About the UNEP Division of Technology,
Industry and Economics
51
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