An introduction to Life-Cycle Thinking and Management

5. Management and the environmental employee

Management is responsible for life-cycle based environmental initiatives including coordination with other initiatives and priorities within the enterprise. Thus, it is obvious to appoint an environmental leader / central environmental coordinator as the day-to-day "anchor person"

Management has overall responsibility

Overall responsibility for a preventative environmental initiative belongs, by definition, to the director of the enterprise. This responsibility becomes even more important when the focus shifts to developing and marketing cleaner products.

Management must ensure that all employees understand, and live up to, the intentions behind the environmental initiative. Rather than a list of empty phrases, an enterprise's environmental policy must be relevant and clearly state the following:
The long-term objectives and ambition level
The areas where the efforts will be directed and the concrete environmental goals
The enterprise's strategy for the product and product service in a lifecycle perspective.

A product-orientated environmental policy must be integrated into the enterprise's other strategies and plans, as well as functioning as a guide in the daily work.The environmental policy may be used in communication with partners as well as evidence of the enterprise's own ambition level. Furthermore, it may be used as an explanation for the demands to suppliers and other partners.

The long-term goals plot a course and indicate the direction of an enterprise's environmental efforts. An environmental policy may be both visionary with longterm objectives, while also being realistic by selecting manageable shortterm goals. A step-by-step approach gives the possibility of being both visionary and realistic at the same time. Furthermore, a step-by-step approach means that experience and knowledge are gained throughout the process, and these are building blocks for the next steps.

The environmental policy ought to be put into action in the initiative areas by means of concrete environmental goals which employees can work towards in their daily tasks.

Examples of initiative areas and goals are some of the following:

The Danish company Grundfos has developed the following environmental goal for product-development projects which states that "Under normal circumstances the following minimum conditions must be met:

minimum five percent reduction in product energy consumption in the usephase

minimum three percent reduction in the raw-materials procurementphase

development of disposal instructions for the product

The project manager may, after consultation with the technical manager, dispense with one or more of these requirements if it appears that the goals cannot be achieved within an economically and technically justifiable framework."

Chemicals - phasing out and substitution of chemicals and materials which are on the list of undesirable substances
Transport - reduce CO2 emissions from the enterprise's goods transport by ten percent
Product - develop instructions regarding environmentally friendly use and disposal of the product
Recycling - 85 percent of the materials in the product can be recycled
Resource consumption - reduce water and energy consumption by eight and five percent, respectively

Selection of an initiative area and measurable goals motivates employees and makes it obvious that environmental improvement efforts are being taken seriously. Thus, it is a good idea if employees participate actively in this selection process.

One way of specifying an initiative area involves setting environmental goals for each phase of a product's life cycle.This can be actualised by a product strategy which explicitly states that an enterprise will consider the environmental implications of a product's various phases, and via this improve the product's environmental profile.Tools which may help in identifying environmental implications are a "spider-web" or a "strategy wheel". These can be drafted in such a way that the difference between a product's existing and improved environmental profile may be illustrated graphically (see Chapter 10 regarding tools).

Expressing the environmental policy both as concrete goals and a product strategy demonstrates, in practise, that management takes life-cycle-based environmental initiatives seriously, and that management will be leaders in the process. Similarly, management must signal that life-cycle-based initiatives require cooperation between all departments at all levels. Larger enterprises in particular require a coordinator who has daytoday responsibility for the initiatives.

Figure 8.
Identifying initiative areas and determining a product strategy

Niels draws a diagram of the environmental impacts associated with production of a thermos; Little Enterprise's most sold product. Hansen and Kirsten contribute their knowledge regarding impacts before and after the product leaves the factory.

Using the diagram, they discuss the goals for a new, environmentally improved product which they hope will capture a greater market share. Their biggest competitor's product marketing is based on product materials alone. Furthermore, Little Enterprise believes that there are possibilities for optimising energy consumption during production. Thus, they have identified two initiative areas - at first.

These initiative areas do not require extensive background research. Instead, "Little Enterprise Ltd." will concentrate on getting an overview. In addition to Hansen, Kirsten and Niels, a few others are involved in the information collection phase. The general overview may also illuminate areas were more information should be obtained from outside sources. The group agrees to inform about their efforts at a common breakfast meeting the following Friday.

 

Both dedicated enthusiasts and book keepers are needed
in a life-cycle-based environmental initiative!

Environmental coordinatior as anchor person

The central environmental coordinator, or the anchor person with daily responsibility for the initiatives will find that the tasks involved expand.

In cooperation with the environmental coordination group, the daily coordinator must assume the following roles:
Coordinator for all the activities in the various departments
Source of inspiration ensuring motivation and availability of simple tools
Motivator including making the ongoing results of the initiatives visible.
Ambassador for the environmental initiatives to partners in the product chain
Contact person for the knowledge network and relevant authorities
Data processor during environmental assessments or detailed life-cycle assessments
Organiser / coordinator for collection and analysis of market information
Collector of suggestions for environmental improvements from internal departments and collaboration partners.
Etc.

Whether the environmental coordinator is an environmental manager, a product developer, or a sales associate is, in principle, unimportant. It is important that the person is dedicated and enthusiastic about the plans, as well as being good at motivating and delegating. Furthermore, the person must be capable of acting as a coordinator for the entire enterprise. Specialised environmental expertise can, if necessary, be obtained outside the enterprise.

A life-cycle-based environmental initiative also requires the presence of analysts and data processors within the enterprise. This is yet another argument for an environmental coordination group with broad representation from within the enterprise.