Life Cycle Management
a Business Guide to Sustainability
Training Session 4 of 4
November 2006
1
Life Cycle Management
Training - Outline
•
Introduction to LCM
– First session
•
How LCM is used in Practice
– Second session
•
Communicating LCM Results
– Third session
•
LCM and Stakeholder
Expectations
– This Session!
2
Learning Objective: Understand the theoretical basis of life cycle
management & its history
08.00-08.30
Why LCM is needed in business and in
government?
Drivers
08.40-09.15
Introduction to LCM
– First session
What is a life-cycle? Impacts & value created
along the life cycle of a product or service
Definitions
History
Use
08.30-08.40
•
What does LCM encompass?
What are the unique aspects of LCM?
09.15-10.00
Group exercise
10.00-10.30
Break for coffee & refreshments
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done
3
Learning Objective: Understand the practical aspects of
LCM in policy development & business operations, through
discussions of how to integrate it into decision making &
through case examples
10.30-10.45
Life cycle management
•
How LCM is used in Practice
– Second Session!
Definition & Benefits
10.45-11.00
LCM involves…
Learning from a range of examples
11.00-12.00
A process for implementing LCM
Plan – Do – Check – Adjust
A focus on design
Further examples to illustrate
12.00-12.30
Group exercise
12.30-13.30
Break for lunch

done
4
Learning Objective: Provide a good understanding of
communication tools and strategies. Why and how can they
be valuable to business?
08.00-08.15
Why communicating LCM? To whom?
Definition and scope, drivers, target
groups of communication
08.15-09.00
Communication toolbox
Main features and link with LCM
Examples and diffusion of tools
09.00-09.45
Case-studies
Sector-specific drivers
Communication strategies
Combination of tools
09.45-10.00
Group exercise
10.00-10.30
Break for coffee & refreshments
•
Communicating LCM Results
– Third Session

done
5
Learning Objective: Understand how to identify
stakeholders & the basics of a process for stakeholder
engagement; Reflect on your relevant stakeholders
10.30-10.45
Opening engaging Discussion
10.45-11.00
Stakeholder Expectations Today
Value of Engaging your Stakeholders
10.45-11.00
A Process for Stakeholder
Engagement
11.00-11.45
Case examples
11.45-12.15
Closing group Discussion
12.15-13.30
Break for lunch
•
LCM and Stakeholder
Expectations
– This Session!
6
Exercise: Who Has a Stake?
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Companies are not alone in the world
From: Life Cycle Management - A Business Guide to Sustainability. UNEP/SETAC, 2007.
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Trends & changing expectations
• Complexity of Stakeholder Expectations Increasing:
– Economic  Environment  Social  Sustainability
– Facilities  Products  Suppliers & End of Life
– Trust Me  Tell Me  Show Me  Involve me
• Definition of Stakeholders is Broadening
– External  Internal
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Consider 2 types of stakeholders
1. Corporate
2. Community
Organisations that work with a
number of different companies at
a strategic or corporate level
Organisations that work with the
companies who operate in their
region at the local & community
level
The two types are not mutually exclusive
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What do corporate-level stakeholders expect?
Strategic, corporate level stakeholders:
– Can have high expectations of the companies with whom
they partner
– Most focused on a clear agenda of specific issues
– Approached by many companies, so will be selective of
whom they work with
– A majority of engagements at this level rely very much on
personal relationships
– Many expectations revolve around building & maintaining
trust
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What do community-level stakeholders expect?
Local, community level stakeholders:
– Expectations are unique to each community
– Often, companies incorrectly assume that:
• Stakeholders who want to be consulted or engaged will be
the same in each community / region
• Stakeholder expectations or issues will be the same from
facility to facility, region to region
– Companies need to take the time to effectively listen to
their concerns, to ensure they understand the real roots
of the concerns
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Stakeholder expectations in 3 areas
Expectations
Community / Operations
Corporate performance
Product performance
Contribution to social,
cultural & economic
wellbeing of local
community
Environmental, social
stated in company's
mission
Policy to address
environmental impact of
products
Two-way communication,
engaging community in
decision-making
Code of ethics or policy on
expected behavior of
employees & business
partners
Programs to address
same (design for
environment, product and
packaging take-back
Identifies & prioritises risks Targets on sustainability
monitored, measured,
reported publicly
Targets on environmental
performance of products
monitored, measured,
reported (e.g. product
declarations)
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Value of working with stakeholders
1. Opportunity creation
2. Risk avoidance
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Business value of working with stakeholders
Business Value of Stakeholder Engagement – A survey of 8 companies
Business value:
Company
Maintain or improve reputation &
image
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“Keep the radar screen tuned” - Stay
in front of & influence regulations &
expectations
Stimulate innovation & generate ideas
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Expedite permitting & approvals
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source: Five Winds International, 2003. “Effectively Engaging Stakeholders: A survey of current practice” presentation to
Conference Board of Canada, 20 May 2003, Kevin Brady, Director, Five Winds International. 15
Business value of working with stakeholders
From: Life Cycle Management - A Business Guide to Sustainability. UNEP/SETAC, 2007.
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Importance of Including Stakeholders
1. Opportunity Creation
•
Less Developed Countries
• Presenting to the greater community
• Establishing mechanism for ongoing community
input
• Building the organisation’s brand
• Reassessing opportunities for value creation
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Importance of Including Stakeholders
1. Opportunity Creation
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Less Developed Countries
Existing Markets
• Innovation
• Good Reputation
• Social Licence to
Operate
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Importance of Including Stakeholders
2. Risk avoidance
– Project delays
– Cancellations
– Public relations disasters,
e.g. Public boycotts
– Damaged reputations
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Process for Stakeholder Engagement
1. Commitment & Principles
– Designate responsibility
– Develop principles to guide engagement
2. Identifying & Prioritising Stakeholders
– Identify key stakeholders
– Identify the issues
3. Methods & Types of Engagement (“Toolbox”)
– Determine appropriate method of engagement
4. Implementation & Exit
source: Five Winds International, 2003. “Effectively Engaging Stakeholders: A survey of current practice” presentation to
Conference Board of Canada, 20 May 2003, Kevin Brady, Director, Five Winds International. 20
Process for Stakeholder Engagement:
1. Commitment & Principles
• Designate responsibility to a group or individual:
– need internal champion(s) to ensure that appropriate
stakeholder engagement takes place
– champions should have experience in stakeholder
engagement & strong interpersonal skills for relationship
building
– champions should be interested, willing & see the value
– champions need to report to a senior executive to ensure
high level commitment & involvement
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Process for Stakeholder Engagement:
1. Commitment & Principles
• Develop principles to guide engagement, in order to:
– demonstrate commitment to stakeholders
– establish rules of the game for fair, respectful dialogue
– ensure consistent approach across all operations
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Process for Stakeholder Engagement:
2. Identifying & Prioritising Stakeholders
Potential Stakeholder Groups to include:
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International, national and regional
regulatory bodies
Shareholders
Investment community
Local and global environmental and social
non-governmental organisations
Local communities
Members of supply chain
Customers
Employees and contractual workers
Media
Labour Associations
Commercial Trade Associations
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Process for Stakeholder Engagement:
2. Identifying & Prioritising Stakeholders
•
Ask the right people:
–
Contact/ interview key representatives from your organisation
about who they feel are key stakeholders
–
Collaborate with leaders from various business functions
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Process for Stakeholder Engagement:
2. Identifying & Prioritising Stakeholders
•
Rank stakeholder groups
based on their relevance to
your organisation’s LCM
strategy
•
Prioritise the stakeholder
groups based on their
relevance to the business
•
Select the stakeholder
groups in terms of their
expectations
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Process for Stakeholder Engagement:
3. Methods & Types of Engagement
• What determines the method of engagement?
– business value, issues being discussed, location, stage of
process, level of resources required etc.
• Method entail different levels of involvement
– Information Sharing
– Consultation
– Collaboration
Increasing level of
involvement
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Process for Stakeholder Engagement:
4. Implementation & Exit
Implement
• develop action items to
address issues raised
• measure success
– Maintain enthusiasm &
credibility
– Justify time & expense
Exit
Set a time line:
• If reason for engagement is
addressed, exiting
relationship is natural
• With local community
stakeholders, engagement
often lasts for the duration
of an operation or project,
even after closure or
decommissioning
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Process for Stakeholder Engagement:
4. Implementation & Exit
Case Study: CEMEX
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Stakeholder engagement case studies
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Case Study – Anglo American
• Have Operations in over 60 countries
• Many in developing or emerging markets
• Often in remote or rural communities
• There is a public expectation that they facilitate poverty
alleviation, health and unemployment, both in their operations
and in the greater community.
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Case Study – Anglo American
• Use their Socio-Economic
Assessment Toolbox (SEAT)
• Develop Community Engagement
Plans
• Facilitate engagement through
– Social Forums
– Partnerships
• Continually look for Feedback
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Case Study – Anglo American
Stakeholders include:
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Investors
Employees and their representatives
Governments
International organisations
Communities (operational
responsibility)
• Contractors and suppliers
• Customers
• NGOs
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Case Study – Anglo American
• Mondi Packaging Paper Mill
– Located in Swiecie, Poland
• Conducted a socio-economic
assessment
• Developed a strategy to address
local concerns
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Case Study – WWF Conservation Partners
Basic Principles of Engagement
• Mutual Respect
• Transparency
• Right to criticise
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Case Study – WWF Conservation Partners
The Partnership aim to facilitate:
• Conservation
• Communications
• Joint Learning Initiatives
• Conservation Partnerships
• Investment
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Case Study – WWF Conservation Partners
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Discussion: Who Can I Engage?
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Additional questions for thought
1. Who in your organisation should participate in identifying the
most important stakeholders to engage with?
2. Name one issue important to your organisation that
stakeholder engagement could help address?
3. Think about one particular stakeholder you could work with.
What perspectives and skills could they bring to the table?
What would the benefits be for your organisation and for the
stakeholder respectively?
4. Are there particular opportunities for your organisation to
improve stakeholder engagement in less developed
countries? In established markets?
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Life Cycle Management
Training - Outline
•
Introduction to LCM
– First session
•
How LCM is used in Practice
– Second session
•
Communicating LCM Results
– Third session
•
LCM and Stakeholder
Expectations
– This Session!
39