1. Forum “Greening ICT Supply Chain”
Life Cycle Management in the value chains - UNEP's activities worldwide
Sonia Valdivia
Oficial de Programa
UNEP DTIE
Tom Swarr
Five Winds International

2. Overview Introduction
Life Cycle Management & the Capability maturity model
Next steps

3. LCT and the 3 pillars of the sustainability
Sustainable development “meets the needs of the present …
We are here at Rio+20 discussing about how Sustainable development can improve the quality of life for every individual without expending the earth’s resources beyond its capacity.
This cannot be done by one person only. The journey towards sustainable development requires that businesses, governments and individuals take action, by changing consumption and production behaviors, setting policies and improving the quality of life.
As a result, businesses have to find innovative ways to be profitable and at the same time improve the environmental and social performance of products.
Resources: A UNEP Guide to Life Cycle Management, UNITED NATIONS PUBLICATION, DTI/0889/PA, ISBN:
…without compromising the ability of future generations to meet their own needs.”

4. Life Cycle Management
Nevertheless, still more is needed, and in order to raise awareness of the benefits and ways to include in the day by day activities of an organization, the LC Initiative published Life Cycle Management.
UNEP and SETAC (2012)

5. Why Life Cycle Approaches?
Adopting a life cycle approach demands data, methods, users and management, all of them aiming sustainability as shown in the adaptation of this idea in Fava's publication.
It is clear that taking into account the whole life cycle demands much more than traditional management. One does need more information along the life cycle and we all know that even the info in an organization is already high.
Nevertheless that is what brings the organization to more sustainable products.
Adapted from Fava (2011)

6. Life cycle challenges and opportunities
80% of current management effort covers only 20% of the available opportunities for value creation
Environmental and social impacts
high
Upstream Opportunities:
Building up better
alliances with suppliers
, access to
limited resources,
stability of supply, etc.
Downstream
Opportunities:
Customer satisfaction
and loyalty, improved brand image, etc.
Opportunities for value creation through environmental and social responsibility
low
Disposal
Consumption
Retail
Manufacturing/
Processing
Transportation
Production
Product Chain
Source: Adapted from WWF-UK 2003

7. Economic benefits of applying LCA based approaches Figures based on real cases20
Xerox saved 400M $ in 2009 by implementing D4E (=LCA)
Some of Wall-Mart suppliers saved up to 71% of their annual energy bill by implementing the Wall-Mart footprint approach
Through implementation of LCA results, detergents producers in US saved over 1.8 Mm3 of water, t of plastics, t of cardboard, and several millions of dollars in transportation costs over 3 years
Every 1$ spent on sustainability saves 2$ in operating costs. Bloomberg’s sustainability efforts have resulted in over 25M$ in net savings in 2008.
By implementing Life Cycle Management principles, 3M has saved over 1.2 billion $ over 30 years
Philips uses LCA as an eco-innovation tool to develop their “green” products. From 2007 to 2010 they increased their sales of green products of about 50% (from 20 to 38% of total sales)
Most of the top 500 companies listed in Forbes are using LC based tools
...
Imola Bedő

8. Metrics / chaotic / qualified / efficient / effective /adaptive
No metrics
Binary , Yes – no
Legal compliance
Procedures in place
Process, Inputs/outputs
Efficiency, prevention
Waste minimized
Life cycle perspective,
Integrated across
Value chain
New markets/products
Sustainability,
Resilience
Focus on capital
Preservation & long-
Term prosperity
/ qualified
/ efficient
/ effective
/adaptive

9. Alignment with ISO 9000 and 14000
- Management system approach - Continual improvement - Monitoring plan - Adapted to current level of organizational capability - Multiple P-D-L-A Cycles - Gradual expansion system boundaries for added capability and enhanced business value

10. ACTION LEARNING 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

11. Qualified: implement basic procedures to protect people and the environment
Management commitment
End-of-pipe measurements:
-Waste
-Air emissions
-Water discharges
Identify key measurement
Gaps for next cycle?
-Corrective actions
-Working rules
-Employee training
Legal compliance
Risk avoidance
Starting with an end-of pipe approach
Teaching on:
-Compliance
-Basic procedures
(e.g. planning)
Sources of learning:
-Inspection reports
-Root-cause
Analysis?

12. Efficient: upgrade procedures
Management commitment
Facility approach (Input/output):
-impacts
-energy consumption
-water balance
-toxic chemicals use
Identify performance gaps
that require redesign/innovation?
-Management
&monitoring plan
-Employee development plan
-Report performance to
public
Process efficiency
Eliminated waste
ISO and ISO 9000 approaches
Risk assessment to set priorities:
-Risk assessment
-Pollution prevention
-Waste minimization
Sources of learning:
- Management system results
-Define KPIs and targets
-Assess training & development needs

13. Effective: Life cycle thinking in progress
Management commitment
Identify key external barriers
For enhanced well being
Value chain perspective:
-hotspots and impacts
-scopes 1,2&3 GHG
-water footprint
Reporting involving
Stakeholders and the
Value chain:
Ecolabels, EPDs,
Green marketing &
Stakeholder
Engagement plan
New markets
Innovative products
LCA/LCM training:
-Ecodesign/design for environment
Annual program review:
-Resources use reduction
- Extend KPIs to value
Chain
Trend analysis
Stakeholder feedback

14. Adaptive: becoming a mean towards SCP
Management commitment
Product system:
-socio-economic profile
-sustainability index for
production systems
-market barriers
- Stakeholder assessment
Co-create new markets for
Enhanced well-being
-Sustainability management
System
-Public reporting
(transparency)
Focus on capital
Preservation & long-
Term prosperity
Action learning:
-System innovation
-Public private
Partnership to overcome market barriers
Sources of information:
-Stakeholder review
performance
-Baseline sustainability
assessment

15. Adaptive: becoming a mean towards SCP

16. 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

18. Merci! Contact http://lcinitiative.unep.fr/ E-mail: ilci@unep.org

19. Value chain (ISO 26000) 20
The entire sequence of activities or parties that provide or receive value in the form of products or services (ISO 26000)

20. 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!