10
Finkbeiner et al. 1998 ; Linnanen 1995 ). However, recent defi nitions of LCM cover
environmental, social and economic issues (Hunkeler et al. 2004 ; Remmen et al.
2007 ) along a product life cycle, which is in line with recent developments in the
area of life cycle assessment (LCA) that further expand the context of LCA to
include social and economic elements under the life cycle sustainability assessment
(LCSA) framework (Finkbeiner et al. 2010 ; Klöpffer 2008 ; UNEP 2011 ) to cover,
for instance, new challenges related to the criticality of materials (Sonnemann
et al. 2015 ). Hence, the implementation of LCSA into real world decision-making
processes both at product, process or individual organizational level is to be ensured
through the application of a broader LCM concept that aims at maximizing the triple
bottom line. Finkbeiner ( 2011 ) referred to it as life cycle sustainability management
(LCSM) for the fi rst time.
2 Life Cycle Management: Concepts and Defi nition
As indicated in the Business Guide to Sustainability by Life Cycle Management
(Remmen et al. 2007 ), which itself is based on Remmen and Münster’s ( 2003 )
report to the Danish Ministry of Environment and the pioneering SETAC publication on Life Cycle Management by Hunkeler et al. ( 2004 ), LCM has been developed
on the basis of fundamental concepts related to sustainable development, which are
the triple bottom line and life cycle thinking. The most popular defi nition of sustainable development is the one from the United National World Commission on
Environment and Development “Development that meets the needs of the present
without compromising the ability of future generations to meet their own needs”
(Brundtland Commission 1987 ). This defi nition is based on two key concepts
“needs” (the essential needs of the world’s poor, to which overriding priority should
be given) and “limitations” (the restriction imposed by technologies and socio-economic factors on the ability of the environment to meet the needs of present and
future generation).
The triple bottom line (3BL) is a framework that integrates the “three dimensions
of sustainability: economic, environmental and social” (Fig. 2.1 ) (Remmen et al.
2007 ). They are also called the three Ps: people, planet and profi t. Businesses
traditionally used to account only the economic aspect of their “bottom line” through
profi t they gain or lose. However, the modern accounting broadens the defi nition of
bottom line to a full cost accounting by including the environmental cost on ecosystem service and a cost on the society. The consideration of 3BL in the conceptualization of LCM allows companies to broaden their focus from only economic
aspects to the environmental and social dimensions.
The goal of life cycle thinking is to avoid burden shifting by assessing a product’s
use of natural resources and its impact on the environment, the economy and society
throughout its entire life cycle. The life cycle of a given product involves a number
of stages from the extraction of raw materials through processing, manufacturing,
distribution, use, recycling, reuse or fi nal disposal (Fig. 2.2 ). Life cycle thinking
G. Sonnemann et al.
Finkbeiner et al. 1998 ; Linnanen 1995 ). However, recent defi nitions of LCM cover
environmental, social and economic issues (Hunkeler et al. 2004 ; Remmen et al.
2007 ) along a product life cycle, which is in line with recent developments in the
area of life cycle assessment (LCA) that further expand the context of LCA to
include social and economic elements under the life cycle sustainability assessment
(LCSA) framework (Finkbeiner et al. 2010 ; Klöpffer 2008 ; UNEP 2011 ) to cover,
for instance, new challenges related to the criticality of materials (Sonnemann
et al. 2015 ). Hence, the implementation of LCSA into real world decision-making
processes both at product, process or individual organizational level is to be ensured
through the application of a broader LCM concept that aims at maximizing the triple
bottom line. Finkbeiner ( 2011 ) referred to it as life cycle sustainability management
(LCSM) for the fi rst time.
2 Life Cycle Management: Concepts and Defi nition
As indicated in the Business Guide to Sustainability by Life Cycle Management
(Remmen et al. 2007 ), which itself is based on Remmen and Münster’s ( 2003 )
report to the Danish Ministry of Environment and the pioneering SETAC publication on Life Cycle Management by Hunkeler et al. ( 2004 ), LCM has been developed
on the basis of fundamental concepts related to sustainable development, which are
the triple bottom line and life cycle thinking. The most popular defi nition of sustainable development is the one from the United National World Commission on
Environment and Development “Development that meets the needs of the present
without compromising the ability of future generations to meet their own needs”
(Brundtland Commission 1987 ). This defi nition is based on two key concepts
“needs” (the essential needs of the world’s poor, to which overriding priority should
be given) and “limitations” (the restriction imposed by technologies and socio-economic factors on the ability of the environment to meet the needs of present and
future generation).
The triple bottom line (3BL) is a framework that integrates the “three dimensions
of sustainability: economic, environmental and social” (Fig. 2.1 ) (Remmen et al.
2007 ). They are also called the three Ps: people, planet and profi t. Businesses
traditionally used to account only the economic aspect of their “bottom line” through
profi t they gain or lose. However, the modern accounting broadens the defi nition of
bottom line to a full cost accounting by including the environmental cost on ecosystem service and a cost on the society. The consideration of 3BL in the conceptualization of LCM allows companies to broaden their focus from only economic
aspects to the environmental and social dimensions.
The goal of life cycle thinking is to avoid burden shifting by assessing a product’s
use of natural resources and its impact on the environment, the economy and society
throughout its entire life cycle. The life cycle of a given product involves a number
of stages from the extraction of raw materials through processing, manufacturing,
distribution, use, recycling, reuse or fi nal disposal (Fig. 2.2 ). Life cycle thinking
G. Sonnemann et al.