Integrating LCIA and LCM Evaluating environmental performances for supply chain management in South Africa

Purpose - Evaluations of environmental performances are of increasing importance for environmental management systems. In the automotive sector of South Africa, suppliers of components lack the ability to provide customers in the value chain with the necessary information to assess and compare environmental performances. Original equipment manufacturers (OEMs) in South Africa have systematically commenced to obtain limited process information from first-tier suppliers. However, the information is not an accurate reflection of the true environmental burdens associated with the supplied components. Based on the available process information, this paper introduces a performance evaluation methodology that is applicable for South Africa. Design/methodology/approach - The LCA methodology, as stipulated by ISO 14040, has been applied to obtain quantified environmental performance resource impact indicators (EPRIIs) associated with limited process parameters in the South African context. Three first-tier suppliers of an OEM are used as a case study to demonstrate the application of the indicator methodology. Findings - The EPRII procedure considers the spatially differentiated ambient environmental state of the South African natural environment for normalisation factors of typical LCIA categories. The procedure further incorporates costs in order to compare supplied components (and companies) equally. Originality/value - The EPRII procedure provides the means for OEMs to obtain a first approximate of environmental concerns in the supply chain, based on three basic process parameters. Thereby, tiers can be prioritised to determine where assistance is required to improve environmental performances.