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UNEP/SETAC Life-Cycle

Initiative

Life Cycle Management Capability


Maturity Model (LCM-CMM)
Building Capacity for
Sustainable Value Chains

International Life Cycle Partnership


To bring science-based life cycle approaches into
practice worldwide
QUICK TOUR OF LCM – CMM
CONTINUAL LEARNING
LCM- CMM APPROACH

(WHAT TO DO)
Competitive
Context

SWOT Analysis
O T Improvement Plan
Situation • Near term business
Analysis S
objectives
• Long term org.
W development

Maturity Product Life Cycle Action Learning


Assessment Scan • Speed implementation
• Just enough analysis +
(HOW TO DO) just in time training
CYCLES OF LEARNING
Management Communicate vision and provide
Commitment necessary resources

Identify improvement
Plan
Identify key gaps to be priorities
addressed in next cycle Set quantified targets

Act Linked to
business strategy
Integrated into Do
Embed new practices in
management system organizational
routines Action learning
Defined processes
Roles & responsibilities
Training & development

Assess performance Learn


against targets
Capture lessons learned
ACTION LEARNING

Directed by business manager


Supported by LCM champion
Training/ technical consultant
Active learning
Feedback from work outcome
Accelerated implementation

Situation Analysis SWOT Analysis Improvement Project

ACTIONABLE TASKS
QUALIFIED – Do No Harm
Management Basic procedures to protect people and
Commitment the environment

Quantify outputs
Plan
Identify key measurement Set Targets
gaps to define business
case

Act
Risk avoidance
Legal compliance Do
Roles & responsibilities
License to operate
Employee training
Hazard ID
Accountability
Controls, procedures
Emergency planning

Inspections Learn
Corrective action
Root cause
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
Inventory key waste streams and most frequent accidents.
PLAN

Establish baseline performance measures and set targets for improvement.


Inventory toxic chemical uses.
Conduct job hazard assessments & install procedures and controls to manage hazards.
Characterize all waste streams.
DO

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
Conduct emergency response drill.
LEARN

Review inspection findings and implement corrective action.


Establish incident investigation process to drive to root cause.
Conduct independent 3rd party compliance audit.
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
ACT

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
EFFICIENT
Management Upgrade procedures to reduce impacts to
Commitment lowest economically feasible level

Plan
Identify performance gaps Aspects & impacts
that require redesign/ Energy & water use
innovation Chemical inventory

Act
Process efficiency
Organization Improve operating Do
Accountability margins
Public reporting “Eliminate waste” Risk assessment
Environmental costs
Pollution prevention
Process safety

Learn
Management system audit
Track KPIs against targets
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
Identify environmental & safety aspects and impacts of facility operations.
PLAN

Inventory energy uses. Compile a water balance for facility.


Establish baseline performance and set targets for improvement
Conduct a risk assessment of facility aspects and impacts & set priorities for improvement.
Conduct pollution prevention/waste minimization projects as required to meet goals.
DO

Develop environmental accounting system to quantify costs of pollution and injuries.


Conduct alternatives assessment for all uses of toxic chemicals
Conduct management system audit of inspection process in reducing incidents.
LEARN

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.
Draft policy and formalize environment, health and safety programs.
Standardize measurements & establish quality assurance procedures.
Integrate measurement requirements into information technology strategic planning.
ACT

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
EFFECTIVE
Management Create goods & services that improve
Commitment human condition while continually
reducing impacts and resource rqmts

Identify key policy barriers Plan Value chain impacts


to sustainable business Scope 1 & 2 GHG
Water footprint
Materiality matrix
Act
Top line growth
Sustainability reporting – New markets Do
e.g. GRI (partial) Innovative products
GHG/ water footprint/
LCA
eco- labels
Design for environment
Chemical substitution

Annual program review Learn


Stakeholder feedback
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
Identify environmental & safety aspects and impacts of company’s value chain.
PLAN

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.
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
DO

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.
Conduct management review of LCM programs.
LEARN

Engage stakeholders to review company progress and assess their understanding/


acceptance of KPIs used to communicate progress
Assess progress against toxic used reduction plan.
Update policy and extend environmental programs to cover full product life cycle system.
Upgrade communication plan to ensure product marketing and public reporting aligned.
ACT

Develop formal stakeholder engagement plan to inform strategic planning.


Bring public reporting into compliance with GRI guidelines.
ADAPTIVE
Management Transform business model to support
Commitment sustainable consumption & production

Plan
Co- create new markets for Socio- economic profile
enhanced well- being! Stakeholder engagement

Act Balance sheet focus


Capital preservation
Sustainable Do
Sustainability mgmt. prosperity
system
Public policy reform System innovation
Public- private partnerships

Stakeholder review of Learn


performance
SUSTAINABLE CONSUMPTION &
PRODUCTION

WBCSD. (2010). Vision 2050: The new agenda for business


http://www.wbcsd.org/WEB/PROJECTS/BZROLE/VISION2050-FULLREPORT_FINAL.PDF

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