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Responsible Procurement Strategy (e-book)

August 14, 2012 Add Comment Edit

A lot of companies do not know what they want to gain by investing in a Responsible Procurement Program. They are simply missing the strategic scope. In addition to pilot projects and a risk based approach to responsible procurement management companies need to ask what they can gain by investing in a Responsible Procurement approach. This complimentary e-book provides some key questions that must be answered to develop a strategic approach to responsible procurement management.

Having a plan improves the chances of reaching the target. Responsible Procurement is moving from "compliance" to "performance". From a consumer point of view much it is important to initiate actions which drive actual change. The brand has to have a stand. And the supply chain plays a vital role in creating the architecture behind.

Key questions

How should we work with our suppliers?
What will the responsible sourcing process be?
What do we expect from our suppliers?
What do we expect from our buyers?
Which drivers should we choose for our program?
How will we measure our success of our initiatives?
How will we communicate our initiatives and our results?

UN Supply Chain Sustainability Tool Introduced at Rio+20

June 19, 2012 Add Comment Edit

A supply chain sustainability tool was officially introduced at the Rio+20 Corporate Sustainability Forum on June 16. The tool was launched on June 12, 2012 by the UN Global Compact, in collaboration with BSR and Maplecroft. It is known as the UN Global Compact Quick Self-Assessment and Learning Tool, which is an online platform developed to help companies evaluate their approach to supply chain sustainability and identify areas for improvement. The scale, scope and severity of global economic, political, social and environmental challenges is making supply chain sustainability a topic of growing importance to business, governments and civil society; but effective and responsible supply chain management requires a coordinated response from all sectors of society.

At Rio+20, governments and private interests will convene on 20-22 June 2012 to seek a more sustainable course for our world. It is in the best interest of the business community to follow the summit and get involved in the dialogue on sustainable development.

Sustainability pioneers like Gro Harlem Brundtland and Achim Steiner have indicated that the business community should be part of the sustainable development dialogue. There is a long list of other organizations and individuals who make the point that sustainable development offers innovative opportunities for the business community. A short list of those who are advocating the involvement of business includes, Clarissa Lins of FBDS, Jacob Scherr of NRDC, Chantal Line Carpentier at the United Nations, and Pavan Sukhdev of GIST Advisory.

The UN Global Compact Tool enables procurement, sourcing and other managers, to quickly and anonymously gauge their company’s supply chain sustainability strategy against suggested global guidance. Key features of the tool are that it both identifies existing areas of strength and sign-posts opportunities for improvement.

The tool will also benchmark a company’s approach against criteria developed by the United Nations Global Compact Advisory Group on Supply Chain Sustainability, and against peer companies according to sector, size and region. Benchmark data will be available by the end of 2012 for users to compare their company’s scores to peer companies, with the ability to filter data by sector, region and size.

Additional learning resources and partner organizations are identified to help managers mitigate and manage country, issue, sector and supplier risks. While companies play a critical role in managing the social, environmental and economic impacts of their supply chains, it is not always clear how such actions should be implemented. The Quick Self-Assessment and Learning Tool is designed to help determine the appropriate scope of corporate supply chain sustainability programmes, and to demonstrate how companies can develop and improve existing policies and practices.

Companies are encouraged to use the tool to assess their approach and build more complete benchmarking data.

Click here to go to the Quick Self-Assessment and Learning Tool.

Click here to learn more about supply chain sustainability

© 2012, Richard Matthews. All rights reserved.

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Sustainable Supply Chain Data Book Q2

June 15, 2012 Add Comment Edit

The Supply Chain of CO2 Emissions (Paper)

May 15, 2012 Add Comment Edit

This is a document reviews supply chain issues related to CO2 emissions. It was written by Steven J. Davisa, Glen P. Petersb, and Ken Caldeiraa at the Department of Global Ecology, Carnegie Institution of Washington, Stanford, and bCenter for International Climate and Environmental Research–Oslo (CICERO). This document considers CO2 on a broader level than simply looking at the countries in which fossil fuels are burned.

CO2 emissions from the burning of fossil fuels are conventionally attributed to the country where the emissions are produced (i.e., where the fuels are burned). However, these production-based accounts represent a single point in the value chain of fossil fuels, which may have been extracted elsewhere and may be used to provide goods or services to consumers elsewhere.

This document includes a consistent set of carbon inventories that spans the full supply chain of global CO2 emissions. As reviewed in the PDF, 10.2 billion tons CO2 or 37% of global emissions are from fossil fuels traded internationally and an additional 6.4 billion tons CO2 or 23% of global emissions are embodied in traded goods.

These results reveal vulnerabilities and benefits related to current patterns of energy use that are relevant to climate and energy policy. In particular, if a consistent and unavoidable price were imposed on CO2 emissions somewhere along the supply chain, then all of the parties along the supply chain would seek to impose that price to generate revenue from taxes collected or permits sold.

The geographical concentration of carbon-based fuels and relatively small number of parties involved in extracting and refining those fuels suggest that regulation at the wellhead, mine mouth, or refinery might minimize transaction costs as well as opportunities for leakage.

Click here for an interactive graphic on CO2 emissions.

To view The Supply Chain of CO2 Emissions (PDF) click here.

© 2011, Richard Matthews. All rights reserved.

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Introduction to Sustainable Supply Chains

May 15, 2012 Add Comment Edit

A good introduction to sustainable supply chains is available from 2degrees. The PDF document is called "Supply Chain Management." It is part of 2degrees Sustainability Essentials Series.

The 2degrees Sustainability Essentials Series provides the necessary guidance to a range of topics, for companies at the start of their sustainability journeys, or for 2degrees members who are new in their roles. Think of it as a short course or a “beginner’s guide to” sustainability issues. This document highlights what you need to know about supply chain sustainability.

To download the PDF click here.

Ten Sources of Green Supply Chain Information

May 14, 2012 Add Comment Edit

Here is a summary of some good information on sustainable supply chains. These links include everything from the basics to more sophisticated research on green sourcing, best practices and metrics. Most of the links provided below are free of charge and contain a wealth of searchable information. The exception being the "Institute of Supply Management's Sustainability Handbook" which costs between 29.99 (members) and 49.99 (non-members).

General Introduction to greener supply chains
The Global Reporting Initiative offers standards, metrics, best practices, and benchmarks
The Environmental Protection Agency (EPA) resources
Department of Energy (DoE)
Green Confidence Index on the GreenBiz Intelligence
The Institute of Supply Management's Sustainability handbook (includes best practices)
The New York Times
The Guardian offers general research and information about the carbon trade scheme in Europe
carpe diehm offers a lot of great information on sustainable supply chains
Green Sustainability Innovators & Innovation Network Group News | LinkedIn

CIPS Sustainable Procurement Tool

May 14, 2012 1 Comment Edit

Chartered Institute of Purchasing & Supply (CIPS) has introduced a tool to help organizations maximize the benefits of sustainable procurement. The CIPS sustainability review tool enables businesses to measure the sustainability of their supply chain, which can account for up to 50% of a company's carbon footprint, and for suppliers to demonstrate this to customers. The new tool is a response to increasing demand from businesses for help to benchmark their purchasing performance and progress towards putting sustainable procurement at the heart of their organizations.

Designed to be completed on an annual basis, the tool is an updated version of the Mayor of London's green procurement code, which has already helped organizations reduce spending on utilities, services and supplies by between 30-40%, in addition to reducing overall emissions, water usage and waste.

The Chartered Institute of Purchasing & Supply has announced the launch of its Sustainability Review tool, to help organisations reap the full benefits of sustainable procurement.

Sustainable procurement not only helps minimise the impact of business on the environment, but also benefits any organisation’s reputation and the wider economy. Demand for ‘greener’ products is forcing change across the supply chain and suppliers need to adapt to maintain and win new business.

With over 50 percent of an average company’s carbon emissions typically coming from its supply chain, businesses keen to be more sustainable need to focus on what their suppliers are doing as well as what they do themselves.

The CIPS Sustainability Review tool enables businesses to measure the sustainability of their supply chain and for suppliers to demonstrate this to customers. The new tool is a response to increasing demand from businesses for help to benchmark their purchasing performance and progress towards putting sustainable procurement at the heart of their organisations.

Through a detailed audited analysis of responses to a series of survey questions, the organisation’s procurement can be rated at Gold, Silver, Bronze or entry-level standard across aspects of environmental, social and economic policy and procedure. At the end of the review, a comprehensive report is provided and an auditor will provide advice on what is required to maintain or improve results.

Designed to be completed on an annual basis, the CIPS Sustainability Review tool also helps to support BS8903 Procurement Sustainability guidance standard and its application in the real world.

Organisations that have signed up to the Mayor of London’s Green Procurement Code have been successful in reducing spending on utilities, services and supplies by between 30-40%, in addition to reducing overall emissions, water usage and waste. The CIPS Sustainability Review tool is an updated version of this Code, with additional socio-economic aspects to help organisations across the UK and abroad.

A recent survey by CIPS in the UK showed 55% of businesses now have a sustainability policy with pressure from public sector customers and stakeholders the most popular reason for introducing them (37%).

One in five (20%) respondents said that the most important driver was the need to conserve natural resources to cut costs. However, whilst a significant proportion say they are seeking to source finished goods, raw materials and business services sustainably, 44 % say that they do not measure the impact of sustainable procurement.

More than one in ten (11%) companies feel that poor planning and lack of corporate buy-in is hampering their company’s sustainability strategy for the future.

David Noble, Chief Executive of the Chartered Institute of Purchasing & Supply said: “Our members are increasingly aware of the benefits of sustainable procurement, not only to meet regulations, but as a strategic contributor in planning for future innovation and profit, following the lead of trail-blazers such as Unliever, Vodafone, and M&S.

“However, demonstrating the cost-benefits of fully-integrated sustainability within the business, and furthermore across industries and the economy as a whole is hard to do due to the complex nature of business itself and the uncertain environment in which they are increasingly operating. This tool will help by not only measuring the effectiveness of sustainable procurement programmes but also help develop a framework for improvements.”

For more information click here.

Report from The Green Economy Action Roadshow

September 12, 2011 Add Comment Edit

The Green Economy Action Roadshow took place on September 9 and 10, 2011, at Moraine Valley Community College, in Palos Hills, Illinois. This green event gave participants the opportunity to meet with businesses, public agencies and experts involved in the Green Economy. Presented by The Delta Institute and Mindful Metropolis, the Green Economy Action Roadshow is a two-day event designed to connect, transform and empower green business, government and lifestyles. The event is focused on helping people to find partners and other resources to help grow with the Green Economy.

During the event participants met stakeholders and learned about what communities, municipalities and businesses are and can be doing in the Green Economy. Participants also heard about emerging opportunities in the Green Economy and they had access to information and resources as well as developing relationships and building local green supply chains

The first day of the conference participants learned how to engage the green Economy to create business opportunities they also learned about supply chains, carbon, financing, positioning and marketing. There were networking opportunities and opportunities to review ideas with industry experts.

On Friday September 9th, there was a session titled "Sustainability and the Supply Chain," presented by Ryan Anderson. This session looked at how businesses up and down the supply chain are reducing energy use and carbon emissions and meet other sustainability performance requirements in order to save money and remain competitive.

Another session was entitled "Green Certifications: What Do They Mean, Who Needs Them?" This session was presented by Abby Corso and Doug Widener, Executive Director, U.S. Geen Building Council- Illinois Chapter. There are hundreds of environmental certifications available, and many businesses wonder which ones, if any, to adopt. What should buyers be looking for and how do they decide? When does it make sense to certify, and which certifications hold the most weight?

In a session titled "Energy Efficiency and Your Operation" presenters Kevin Dick and Meena Beyers showed how even a modest investment in energy efficiency can produce a substantial payback and found out about incentives that make it affordable for a limited time.

At the session "Talking Dollars and Sense about Sustainability," presenters Abby Corso and Jon Levey, reviews the challenges of finding the resources to invest in sustainability. This session explored the many sources of funding for sustainability initiatives, from loans, to grants, to tax incentives and other creative methods to support implementation.

On the second day of the event there was a green consumer exhibition. This included consumer workshops and demonstrations on green purchasing, energy efficiency/home weatherization, deconstruction/reuse, sustainable/ local food, alternative transportation, and more. There were also opportunities to meet with experts on the above topics.

On Saturday September 10th the session "Energy: The Next Generation" reviewed the winners and the losers in the future energy marketplace and the role of wind, solar, geothermal and other energy alternatives. Presenters:

The workshop, "From Costly to Cozy: Saving Money and Energy at Home" by presenters: Vanessa Roanhorse and Cheryl Pomeroy, reviewed tax credits and subsidies as they relate to home weatherization their homes. This session explained how weatherization can improve comfort and reduce the cost of home-ownership, and a healthier home.

The workshop "Electronics and the Waste Stream" reviewed e-waste as one of the fastest growing categories of pollution. The workshop explained how to safely dispose of electronic devices, including how they may be upgraded or refurbished for reuse or donation.

The final workshop was titled, "Real Green Careers and How to Train for Them," it was presented by Kindy Kruller and Eda Schrimple. This workshop reviewed how the green economy is generating real jobs in many different industries, including clean energy, waste and water management, green building and other emerging areas. The workshop also explored where to find the training to prepare for a green career.

© 2011, Richard Matthews. All rights reserved

The Sustainable Supply Chain Efforts of Interface Inc

August 19, 2011 Add Comment Edit

Interface inc. quickly learned that the substantial majority of their product’s footprint was incurred before their raw materials reached their receiving docks. It became clear to Interface that to be completely sustainable they needed to educate and actively engage their suppliers on their sustainble efforts known as the "Mission Zero" journey.

Interface first got involved with making their supply chains more sustainable as a consequence of their waste reduction efforts. Interface now extends their definition of waste to consider their entire supply chain.

They began with Supplier Summits – conversations with their key suppliers to introduce them to their mission and sustainability goals. Today, they collaborate closely with their core strategic suppliers to address their own environmental impacts and, specifically, the impacts of the products they supply to Interface. This collaboration has resulted in solutions ranging from small steps to reduce their climate impacts to new and innovative technologies that increase the recycled content of their products.

Interface also employs the Sustainable Carpet Assessment Standard (SCAS) known as NSF 140-2007. It is a certification system that establishes performance requirements for economic, environmental and social impacts throughout the supply chain. It is the only carpet sustainability standard in North America that evaluates the environmental impacts of carpet over the entire life cycle of the product.

© 2011, Richard Matthews. All rights reserved.

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