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
UNDERSTANDING THE
COMPETITIVE CONTEXT
ENVIRONMENTAL CONTEXT
• Each industry sector has unique set of impacts,
public issues, etc.
• Each position (tier) in supply chain has own set of
constraints & opportunities
• Each facility must address concerns & priorities of
host community and site specific environmental
factors
BUSINESS CONTEXT
• Value Proposition
– Attributes customer uses to evaluate product
offering
• Strategy
– What company will do better/ differently to achieve
competitive advantage
• Business Model
– How company is organized to capture financial value
from its activities, products and services
PRODUCT SYSTEM LIFE CYCLE
Visible industries
Best available
technology,
Industry code of
conduct
Visible companies
Green procurement
Design standards
Sustainability
reporting
Visible
products
Eco- labels,
green
marketing
•What is ‘visible’ in your value chain?
Visible
waste
streams
Take-back
& recycle
COTTON TEXTILES
Environmental and Social Issues
Water Use
Pesticides
Soil
degradation
1.
2.
Bed &
Furrow
Worker
health
Child labor
Dyes &
bleaches
Bulky
waste
Where are you in value chain?
Which practices are you ready to adopt?
Integrated
pest mgmt.
Green
Chemistry
Fair labor
practices
Patagonia
Common
Threads
COTTON TEXTILES
Business Value Chain
$0.32
$0.76
Seed Cotton
1.
2.
Bed &
Furrow
Raw Fiber
$1.32
$3.80
$25.00/kg
Yarn
Finished
Product
Retail
Where is profit captured in value chain?
What is your ability to shift value capture?
Integrated
pest mgmt.
Green
Chemistry
Fair labor
practices
Patagonia
Common
Threads
Textco Inc.
• Hypothetical case studyfabric producer, weaving,
dyeing, bleaching, etc.
• Supplier to branded
consumer goods company
• Customer has requested
data for eco- labels & carbon
footprint goals
• Operations manager has
been tasked with developing
plan to respond
EXERCISE #1 – FACILITY PROFILE
Child labor Pesticides Water use Chemicals- dyes, bleaches Soil degradation,
habitat destruction
Spun yarn
dyes
Nat gas,
electricity
Wet processes
Oxidative desizing
Hydrogen peroxide
Caustic soda
Bleaching
Peroxide,
complexing agents
surfactants
Scouring
Alkali, auxiliary
chemicals
Continuous pad
dyeing
Water, dyes
Fixation by steam
Steam
boiler
Singeing off- gas
Wet chemical proc.
COD, metal
complexes
Finished
fabric
Wastewater
treatment
See companion
Worksheet #1
WORKSHEET #1 – Facility Profile
LIFE CYCLE SCAN
Other
Chemicals Energy Materials
Harvest/
Extract
Manufacture
Distribute/
Use/ Service
Water use
EOL Mgmt.
Landfill
disposal
Wash & dry
Pesticides
Dyes, bleaches
Detergent,
softeners
Child labor
Soil degradation
Habitat loss
Child labor
Short fashion life
of garment
SWOT MATRIX
Maturity
assessment
INTERNAL FACTORS
Opportunity
Growth
Use strengths to take
advantage of
opportunities
Positioning – Org.
Development
Threat
EXTERNAL FACTORS
Strength
LCA
Use strengths to avoid
threats
Weakness
Positioning – Org.
Development
Overcome weaknesses by
taking advantage of
opportunities
Risk Mgmt.
Minimize weakness and avoid
threats
EXTERNAL FACTORS
THREATS
• Tighter water quality
limits
• Chemicals of concern
• Organic cotton
OPPORTUNITIES
• Green chemistry /
substitution
• Organic cotton
See companion
Worksheet #2
WORKSHEET #2 – External Factors
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?