16
• Communication with suppliers, including SMEs, using company codes or
manuals of conduct, audit or supplier evaluation systems
Larger companies often combine supplier communication with offering training
exercises.
4 Organizational Challenges
LCM can be applied in all organizations from a very small-scale local vendor to
large and multinational companies. However, the application procedure and its
organization may vary in each company. This is mainly due the fact that the relevance of different aspects of sustainability varies from company to company, and it
depends on factors such as the type of product system involved in the company,
specifi c social and environmental issues they would like to address, their geographic
scope and supply chain complexity and so on. As a life cycle approach, LCM is a
dynamic process in which companies may begin applying it with specifi c goals and
objectives depending on the resource they have. They may begin with using LCA
as a tool to evaluate their environmental performance of a single product and fi nd
an alternative solution to reduce the environmental burden from this product.
Through time they can adjust their goal and move forward step-by-step from one
project to a more advanced and sophisticated life cycle management practice,
with a process in place for multiple products, which require advanced tools and
data- intensive programs. Another point of departure for a company could be to
benchmark their products or services against ecolabel criteria to determine relevant
aspects to consider in a life cycle perspective and to fi nd inspiration for improvements. This, of course, requires that ecolabel criteria exist for the products or
services in question.
One of the critical reasons for companies to be engaged with LCM practices is
their pursuit for continuous improvements, covering economic, environmental and
social aspects. Nowadays, companies are infl uenced by external and internal factors so that they envisage such improvements and develop strategic policies, apply
a number of tools and establish programs that integrate LCM into the core operations of their business. Business strategy, market opportunities and requirements
from the fi nance sector, as well as national legislations, trade block related regulations and international agreements are the key drivers behind the implementation
of LCM. Evidently, companies have to apply it based upon high-level management
decisions, only then LCM becomes an integral part of the organizations’ policies
and strategies in the short term and long term. However, it can also be implemented with a pioneer in one of the multiple departments of an organization.
Successful implementation of LCM demands continuous support from top level
management such as:
• Providing the required resources for the sustainability initiative including time
and educational resources
G. Sonnemann et al.
• Communication with suppliers, including SMEs, using company codes or
manuals of conduct, audit or supplier evaluation systems
Larger companies often combine supplier communication with offering training
exercises.
4 Organizational Challenges
LCM can be applied in all organizations from a very small-scale local vendor to
large and multinational companies. However, the application procedure and its
organization may vary in each company. This is mainly due the fact that the relevance of different aspects of sustainability varies from company to company, and it
depends on factors such as the type of product system involved in the company,
specifi c social and environmental issues they would like to address, their geographic
scope and supply chain complexity and so on. As a life cycle approach, LCM is a
dynamic process in which companies may begin applying it with specifi c goals and
objectives depending on the resource they have. They may begin with using LCA
as a tool to evaluate their environmental performance of a single product and fi nd
an alternative solution to reduce the environmental burden from this product.
Through time they can adjust their goal and move forward step-by-step from one
project to a more advanced and sophisticated life cycle management practice,
with a process in place for multiple products, which require advanced tools and
data- intensive programs. Another point of departure for a company could be to
benchmark their products or services against ecolabel criteria to determine relevant
aspects to consider in a life cycle perspective and to fi nd inspiration for improvements. This, of course, requires that ecolabel criteria exist for the products or
services in question.
One of the critical reasons for companies to be engaged with LCM practices is
their pursuit for continuous improvements, covering economic, environmental and
social aspects. Nowadays, companies are infl uenced by external and internal factors so that they envisage such improvements and develop strategic policies, apply
a number of tools and establish programs that integrate LCM into the core operations of their business. Business strategy, market opportunities and requirements
from the fi nance sector, as well as national legislations, trade block related regulations and international agreements are the key drivers behind the implementation
of LCM. Evidently, companies have to apply it based upon high-level management
decisions, only then LCM becomes an integral part of the organizations’ policies
and strategies in the short term and long term. However, it can also be implemented with a pioneer in one of the multiple departments of an organization.
Successful implementation of LCM demands continuous support from top level
management such as:
• Providing the required resources for the sustainability initiative including time
and educational resources
G. Sonnemann et al.