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http.//lcinitiative.unep.fr Sonia Valdivia Life Cycle Management Capability Maturity Model: helping SMEs apply LCA in business decision making Division of Technology, Industry and Economics Sustainable Consumption and Production Branch S. Valdivia 1 , T.E. Swarr 2 and B. Vigon 3, , J.A. Fava 2 , A.A. Jensen 4 1- United Nations Environment Programme 2 - Five Winds International 3 - Society of Environmental Toxicology and Chemistry 4 - Nordic Institute for Product Sustainability, Environmental Chemistry and Toxicology (NIPSECT) International Life Cycle Partnership To bring science-based life cycle approaches into practice worldwide

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Page 1: Life Cycle Management Capability Maturity Model: helping ... · Life Cycle Management Capability Maturity Model: helping SMEs apply LCA in business decision making Division of Technology,

http.//lcinitiative.unep.fr Sonia Valdivia

Life Cycle Management Capability Maturity Model: helping SMEs apply

LCA in business decision making

Division of Technology, Industry and Economics Sustainable Consumption and Production

Branch

S. Valdivia1, T.E. Swarr2 and B. Vigon3, , J.A. Fava2, A.A. Jensen4

1- United Nations Environment Programme

2 - Five Winds International

3 - Society of Environmental Toxicology and Chemistry 4 - Nordic Institute for Product Sustainability, Environmental Chemistry and Toxicology (NIPSECT)

International Life Cycle Partnership To bring science-based life cycle approaches into

practice worldwide

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http.//lcinitiative.unep.fr Sonia Valdivia

Capability maturity model

Introduction

Overview

UNEP’s activities

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http.//lcinitiative.unep.fr Sonia Valdivia

Life cycle challenges and

opportunities

3

80% of current management effort covers only 20% of

the available opportunities for value creation

Opportunities for value

creation through

environmental and social

responsibility

Upstream

Opportunities:

Building up better

alliances with suppliers

, access to

limited resources,

stability of supply, etc.

high

low

Envir

onm

enta

l and s

ocia

l im

pacts

Product Chain

Disposal Consumption Retail Manufacturing/

Processing Transportation Production

Source: Adapted from WWF-UK 2003

Downstream

Opportunities:

Customer satisfaction

and loyalty, improved

brand image, etc.

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http.//lcinitiative.unep.fr Sonia Valdivia

SMEs in a globalized world - a glance to emerging economies-

1. Corporate responsibility and sustainability issues are VASTLY different

around the world. Culture counts, more than anything: Local knowledge

essential

2. Global principles with local implementation, combined with „redline‟ areas of

ethics (i.e. bribes) and overall targets, is the way large companies are

operating successfully and sustainably

3. Stakeholders are less predictable and issues can escalate very quickly

4. Agendas are different: But skills,

education and jobs are always

Number One

5. ‘The greener agenda’ is

understood and often consumers

are less skeptical

0%

10%

20%

30%

40%

50%

60%

70%

80% 68%

78%72%

67% 67%61%

57%

30%

Jobs created in SMEs

SUSTAINABILITY IS

LOCAL!

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http.//lcinitiative.unep.fr Sonia Valdivia

Sustainability

Life Cycle Approaches - LCM

- Ecolabel, Ecodesign, Sustainable Procurement

• Material Flow Accounting, Input – Output Analysis

• (Env) LCA, Social LCA, Life Cycle Costing, LCSA

• Data

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http.//lcinitiative.unep.fr Sonia Valdivia

• Complements performance measures – Fewer but targeted

– Quality control

• Aligns near term targets with longer term development need

• More fundamental concept that applies across industries, products & regions

6

Capability

(Learning)

Perf

orm

ance

(Accounta

bili

ty)

Heroic

efforts

Underutilized

Investments

Focused Results

Capability Framework Promotes Balanced Improvement Efforts

Page 7: Life Cycle Management Capability Maturity Model: helping ... · Life Cycle Management Capability Maturity Model: helping SMEs apply LCA in business decision making Division of Technology,

http.//lcinitiative.unep.fr Sonia Valdivia

No metrics

Binary

Yes – no

Process

Inputs/outputs

Eco-efficiency

Cradle to grave,

Integrated across

Value chain

Sustainability,

resilience

Metrics

/ qualified

/ efficient

/ effective

/adaptive

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http.//lcinitiative.unep.fr Sonia Valdivia

- Adapted to current level of organizational capability - Continual Improvement - Multiple P-D-L-A Cycles - Gradual expansion system boundaries for added capability and enhanced business value Scope Business case

Socio- technical system

Enhanced well being- sustainable prosperity

Value chain Stronger balance sheet- long- term competitive advantage

Enterprise Top line growth - Innovative products, new markets

Facility Bottom line gains- efficiency, cost reduction

Unit operation Risk avoidance- Legal compliance

ACTION LEARNING

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http.//lcinitiative.unep.fr Sonia Valdivia

CAPABILITY SELF- ASSESSMENT

Improvement projects designed to achieve near- term objectives and

incrementally build components of LCM management system

Page 10: Life Cycle Management Capability Maturity Model: helping ... · Life Cycle Management Capability Maturity Model: helping SMEs apply LCA in business decision making Division of Technology,

http.//lcinitiative.unep.fr Sonia Valdivia

UNEP/SETAC: Next Steps

• Conduct Phase 2 pilot to validate with quantified benefits

• Refine self- assessment protocol & assess integration with MNC supply mgmt

• Refine training materials and deploy to internal (MNC) and external (local network) trainers

Confirm ability of SME suppliers to plan their own improvement

programs & balance local/ global sustainability objectives

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http.//lcinitiative.unep.fr Sonia Valdivia

Benefits of Capability Approach • Global companies

– Extend supply chain programs to a much broader base than practical with internal staff

– Focus company programs on strategic partners, material issues

– Leverage previous investments in lean manufacturing

• SME suppliers

– Faster learning, more successful projects

– Framework to rationalize competing requirements of customers & develop a more cohesive improvement strategy

– Facilitates integration of life cycle issues into existing procedures, routines

– Local sustainability

• Communities

– Emphasis on localized decision- making ensures action aligned with significant environmental issues and development priorities

– Job creation (better jobs) for organizations to support suppliers locally

Capable suppliers, vibrant communities, and resilient value chains!

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http.//lcinitiative.unep.fr Sonia Valdivia

• Objective 1:

Expanding capability worldwide to apply life cycle approaches

• Objective 2:

Refine and facilitate methodologies for life cycle assessment achieved by international consensus

• Objective 3:

Facilitate the use of life cycle based approaches in business, government and the society about natural resources, materials and products targeted at consumption clusters (food, housing and mobility)

UNEP/SETAC

Life Cycle Initiative

2002 - …..

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http.//lcinitiative.unep.fr Sonia Valdivia

•UNEP/SETAC Life Cycle Initiative:

2002 - on

•International Life Cycle

Partnership for a Sustainable

World

•- Our sponsors -

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http.//lcinitiative.unep.fr Sonia Valdivia

USETox

The UNEP/SETAC Life Cycle Initiative

Business, Academic, and

Governments working together to:

To bring science-based life cycle

approaches into practice

worldwide

Over 2000 individuals

collaborating globally

SETAC brings the science

UNEP brings access to

governments and dissemination

One stop shop for

life cycle approaches

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http.//lcinitiative.unep.fr Sonia Valdivia

Life Cycle Approaches Worldwide – Next activities: Capability Development

Legend: : No information available. Level 0 : No LC experience or regulation. Level 1 : Limited experience and no regulation. Level 2 : Some research experience and foundations of LC based regulation. Level 3 : Some good practices and limited regulation. Level 4 : Advanced LC practices and developed regulation.

LCA IX

Chicago, Oct 2011

LCM

India Nov 2011

SETAC LCA Europe

Copenhagen, Set 12

Training in Chile

Dec 6,7, 2011

UNEP/SETAC 2012

LCA Databases,

Jan, Japan

ALCANET training

activities –South

Africa (Pending)

SETAC World Conf

Berlin, May, 2012 3rd LCM China Conf

April, 2012

LCA Seminar

Arab region, 2011

Basis: 2008

3rd LCM Brazil

Oct 2012

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http.//lcinitiative.unep.fr Sonia Valdivia

•UNEP/SETAC Life Cycle Initiative: 2002 - on

•International Life Cycle Partnership for a Sustainable World

•- Our sponsors -

Thanks,

Questions?

Sonia Valdivia,

[email protected]

http://lcinitiative.unep.fr