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
SUSTAINABILE VALUE CHAINS
Global Issues, international
standards, certifications, reporting
LEARNING CURVE CHALLENGE

Today’s
Best
Practices

Incremental improvements to build capability

10 - 20 years of learning
SUSTAINABILITY CHALLENGE
Global Issues, international
standards, certifications, reporting

Local concerns, Global logic of markets

development priorities
vs.
Local logic of sustainability
Capability Framework Promotes
Balanced Improvement Efforts
• Complements
performance measures Focused
– Fewer but targeted Heroic Results
– Quality control efforts
• Aligns near term targets

(Accountability)
Performance
with longer term
development need
• More fundamental
concept that applies
across industries,
products & regions Underutilized
Investments

Capability
(Learning)

5
LIFE CYCLE ASSESSMENT
ISO- 14040 & 14044

1
Goal and Scope
Definition
4

Interpretation
2 Inventory Analysis

3 Impact Assessment
BETTER DECISIONS &
IMPROVED PERFORMANCE

• Use of diverse sources of information,

• Sensitivity to boundary definition and
interconnections,
• Systemic view of problem,
• Causal analysis to promote innovative solutions,
• Inclusive process to resolve conflicts and build
support, and
• Open communications to build trust and
collaboration.

Improved decision- making supports innovation,

operational excellence, risk management
MAKING A BUSINESS CASE
EXTERNAL DRIVERS IMPACT ON COMPANY
•Products / Customers
CAPTURING VALUE
•Economic
–Income inequality –New products & services,
–Outsourcing jobs brand value Revenue
–Trade imbalances –Market restrictions
•Environmental –Taxes- e.g. carbon tax
–Climate change- extreme •Factories/ Communities Margin
weather, rising sea, 90°F –License to operate, ease of
days, crop damage permitting
–Peak oil, price volatility Cost of
–Improved process efficiency Sales
–Air quality- respiratory –Employee morale,
illness, asthma productivity
–Resource depletion- e.g. rare –Taxes, fines, liabilities
earths ROIC
•Supply Chain
–Toxic chemicals
–Water scarcity, quality –Public campaigns, supply
interruptions Working
–Land use Capital
–Biodiversity & species –Liability for clean up
extinctions –Access to quality suppliers
•Social •Public/ Communications Invested
–Child, forced labor –Access to capital Capital
–Supply chain mgmt in –Recruitment & retention
developing economies –Reputation, brand value, Fixed
–Socially responsible stock P/E ratio Capital
investors
–Fair trade
Life Cycle Management Capability
Maturity Model (LCM - CMM)

Level Span of Metrics Decision Business case

control / Process
influence
Qualified Project Compliance- yes/no Team-based, Risk Avoidance; license
Process outputs visible trade-offs to operate

Efficient Enterprise Process inputs/ Rule-based trade- Improved operating

outputs offs to achieve margins
Eco- efficiency enterprise goals Labor & resource
efficiency

Effective Value chain Cradle to grave, Fact-based to Top line growth,

integrated across anticipate value Innovative products,
value chain chain trade-offs new markets

Adaptive Society Sustainability Value-based to co- Strong balance sheet

measures develop business Long- term competitive
Resiliency goals & social advantage
expectations
Continual Improvement
Multiple P-D-L-A Cycles

Capability Scope Business case

Adaptive Society Capital preservation;
sustainable prosperity
Effective Value Top line growth -
chain Innovative products, new
markets
Efficient Company Process efficiency;
improved margins
Qualified Facility/ Risk avoidance; license
Process to operate

Logical sequence of improvements based on experiences of

global leaders to speed learning
Table of Contents

1. A Quick Tour
2. Competitive Context
3. Conducting a Maturity Assessment
4. Developing an Improvement Plan
5. Align Improvements with Business
Strategy
6. Moving from Events to Management
Systems