To bring sciencebased life cycle approaches into practice worldwide UNEPSETAC LifeCycle Initiative Life Cycle Management Capability Maturity Model LCMCMM Building Capacity for Sustainable Value Chains ID: 402804
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International Life Cycle Partnership
To bring science-based life cycle approaches into practice worldwide
UNEP/SETAC Life-Cycle Initiative
Life Cycle Management Capability Maturity Model (LCM-CMM)
Building Capacity for
Sustainable Value ChainsSlide2
UNDERSTANDING THE COMPETITIVE CONTEXTSlide3
ENVIRONMENTAL CONTEXT
Each industry sector has unique set of impacts, public issues, etc.Each position (tier) in supply chain has own set of constraints & opportunitiesEach facility must address concerns & priorities of host community and site specific environmental factorsSlide4
BUSINESS CONTEXT
Value PropositionAttributes customer uses to evaluate product offeringStrategyWhat company will do better/ differently to achieve competitive advantageBusiness Model
How company is organized to capture financial value from its activities, products and servicesSlide5
PRODUCT SYSTEM LIFE CYCLE
What is ‘visible’ in your value chain?
Visible products
Eco- labels, green marketing
Visible waste streams
Take-back & recycle
Visible companies
Green procurement Design standards
Sustainability reporting
Visible industries
Best available technology,
Industry code of conductSlide6
COTTON TEXTILES
Environmental and Social Issues
Water Use
Pesticides
Soil degradation
Child labor
Dyes & bleaches
Worker health
Bulky waste
Where are you in value chain?
Which practices are you ready to adopt?
Fair labor practices
Bed & Furrow
Integrated pest mgmt.
Patagonia Common Threads
Green
ChemistrySlide7
Seed Cotton
Raw Fiber
Yarn
Finished Product
COTTON TEXTILES
Business
Value Chain
Where is profit captured in value chain?
What is your ability to shift value capture?
Fair labor practices
Bed & Furrow
Integrated pest mgmt.
Patagonia Common Threads
Green
Chemistry
Retail
$0.32
$0.76
$1.32
$3.80
$25.00/kgSlide8
Textco Inc.
Hypothetical case study- fabric producer, weaving, dyeing, bleaching, etc.Supplier to branded consumer goods company
Customer has requested data for eco- labels & carbon footprint goalsOperations manager has been tasked with developing plan to respondSlide9
EXERCISE #1 – FACILITY PROFILE
Child labor Pesticides Water use Chemicals- dyes, bleaches Soil degradation, habitat destruction
Spun yarn
dyes
Nat gas, electricity
Wet processes
Bleaching
Peroxide,
complexing
agents
surfactants
Continuous pad dyeing
Water, dyes
Fixation by steam
Scouring
Alkali, auxiliary chemicalsOxidative desizing
Hydrogen peroxideCaustic sodaWastewater treatment
Steam boilerFinished fabricWet chemical proc.
COD, metal complexesSingeing off- gas
See companion Worksheet #1Slide10
WORKSHEET #1 – Facility ProfileSlide11
LIFE CYCLE SCAN
Harvest/ Extract
ManufactureDistribute/ Use/ Service
EOL Mgmt.
Materials
Water use
Landfill disposal
Energy
Wash & dry
Chemicals
Pesticides
Dyes, bleaches
Detergent, softeners
Other
Child labor
Soil degradation
Habitat loss
Child labor
Short fashion life of garmentSlide12
SWOT MATRIX
Strength
Weakness
Use strengths to take advantage of opportunities
Overcome weaknesses by taking advantage of
opportunities
Use strengths to avoid threats
Minimize weakness and avoid threats
Threat
Opportunity
EXTERNAL FACTORS
INTERNAL FACTORS
Maturity
assessment
Growth
Risk Mgmt.
Positioning – Org. Development
Positioning – Org. Development
LCASlide13
EXTERNAL FACTORS
THREATSTighter water quality limits
Chemicals of concernOrganic cottonOPPORTUNITIES
Green chemistry / substitution
Organic cotton
See companion Worksheet #2Slide14
WORKSHEET #2 – External FactorsSlide15
CAN ENVIRONMENTAL INITITAIVES ADD TO VALUE PROPOSITION?
Costs
- Do
environmental drivers influence cost structure?
Customer value
- Are we in a position to communicate
environmental
benefits?
Risk
- Are we exposed or in a position to assume risk for a fee?
Resources & capabilities
- Are we in a position to leverage technical strengths?
Market power
- Are we in a position to exercise power to drive higher standards?
Information
- Are we in a position to control the flow? Do customers want environmental data?