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Life Cycle Managementa Business Guide to Sustainability
Training Session 4 of 4November 2006
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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!
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• Introduction to LCM– First session
Learning Objective: Understand the theoretical basis of life cycle management & its history
08.00-08.30 What is a life-cycle? Impacts & value created along the life cycle of a product or service
DefinitionsHistoryUse
08.30-08.40 Why LCM is needed in business and in government?
Drivers
08.40-09.15 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
done
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• How LCM is used in Practice– Second Session!
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 managementDefinition & Benefits
10.45-11.00 LCM involves…Learning from a range of examples
11.00-12.00 A process for implementing LCMPlan – Do – Check – AdjustA focus on designFurther examples to illustrate
12.00-12.30 Group exercise
12.30-13.30 Break for lunch
done
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• Communicating LCM Results– Third Session
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 toolboxMain features and link with LCMExamples and diffusion of tools
09.00-09.45 Case-studiesSector-specific driversCommunication strategiesCombination of tools
09.45-10.00 Group exercise10.00-10.30 Break for coffee & refreshments done
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• LCM and Stakeholder Expectations– This Session!
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 TodayValue 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
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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. CommunityOrganisations 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 performanceContribution 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 1 2 3 4 5 6 7 8
Maintain or improve reputation & image
“Keep the radar screen tuned” - Stay in front of & influence regulations & expectations
Stimulate innovation & generate ideas
Expedite permitting & approvals
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.
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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
• 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.
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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:
• 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
ExitSet 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:
• 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!
