Building Organizational Capability for Life Cycle Management

Corporations are being pressured to integrate life cycle thinking and practices across global supply chains. The UNEP/SETAC Life Cycle Initiative has been developing a life cycle management capability maturity model (LCM CMM) to help mainstream life cycle assessment (LCA) and life cycle management (LCM). Pilot projects in small-to-medium-sized enterprises (SMEs) to apply the model showed the companies were able to identify and implement projects that delivered both near-term business value and developed the organizational capability for LCM. A key benefit of the life cycle approach was enhanced cross-functional integration and collaboration with suppliers and customers. The projects did identify a need for more guidance on how to interpret the business impact of environmental concerns and to align LCM efforts with company business strategy. Collaborative networks where more advanced companies can share their knowledge are a key enabler, particularly in developing economies.