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Life Cycle Management in the value chains - UNEP's activities worldwide

Life Cycle Management in the value chains - UNEP's activities worldwide. Forum “Greening ICT Supply Chain”. Sonia Valdivia Oficial de Programa UNEP DTIE Tom Swarr Five Winds International. Introduction. Life Cycle Management & the Capability maturity model. Next steps. Overview.

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Life Cycle Management in the value chains - UNEP's activities worldwide

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

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

  3. LCT and the 3 pillars of the sustainability Sustainable development “meets the needs of the present … …without compromising the ability of future generations to meet their own needs.”

  4. Life Cycle Management UNEP and SETAC (2012)

  5. Why Life Cycle Approaches? Adapted from Fava (2011)

  6. Environmental and social impacts Opportunities for value creation through environmental and social responsibility Production Transportation Manufacturing/ Processing Retail Consumption Disposal Life cycle challenges and opportunities 80% of current management effort covers only 20% of the available opportunities for value creation 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. low Product Chain Source: Adapted from WWF-UK 2003

  7. Economic benefits of applying LCA based approachesFigures based on real cases 20 • 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, 43000 t of plastics, 57000 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 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. - 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 Alignment with ISO 9000 and 14000

  10. ACTION LEARNING

  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 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 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

  17. http://www.avnir.org/documentation/congres_avnir/LCMacademylast.pdfhttp://www.avnir.org/documentation/congres_avnir/LCMacademylast.pdf

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

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