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Adams - Greening Your Supply Chain
 

Adams - Greening Your Supply Chain

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"Why? Drivers for Greening the Supply Chain" - from 8/18 Business & Environment Session, Greening the Supply Chain: Drivers, Challenges and Strategies

"Why? Drivers for Greening the Supply Chain" - from 8/18 Business & Environment Session, Greening the Supply Chain: Drivers, Challenges and Strategies

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  • Yellow arrows are equivalent to risk – loss of control of materials and exposureMULTIPLE LAYERS OF SUPPLY CHAIN UPSTREAM AND DOWN
  • Yellow arrows are equivalent to risk – loss of control of materials and exposureMULTIPLE LAYERS OF SUPPLY CHAIN UPSTREAM AND DOWN
  • Pollution preventionResource scarcities political issues conflict mineralsYour products are someone else’s inputs
  • Toxic materials management, haz waste, air & water permitsMistakes – fines, liabilitiesHarm to env or workers, customers
  • Green dominoes – need to keep up with competition greener than the next guyBrand and performance – investors and maybe consumer market. Certifications.
  • Supply Chain Environmentalism In the retailer community there is sound evidence that Supply Chain Environmentalism has become a reality and, perhaps, a market imperative. Supply chain environmentalism is defined as the enhancement of competitiveness of products through either cost reduction or product differentiation, or both, achieved by reduction of environmental impacts (e.g. greenhouse gas emissions, water consumption, etc.) in the supply chain. ENVIANCE
  • Suppliers viewed as biggest env impact – you meet Walmart goals for GHG reductionCarbon Disclosure Project (CDP)Greenhouse gas emissionSolid waste generatedWater useSustainability purchasing guidelines for your direct suppliers3rd party product certificationsLocation of ALL facilities that make your productsQuality pre-check suppliersManage “social compliance” for you and your suppliersCommunity development activities
  • Another: Kaiser http://www.greenbiz.com/news/2010/05/04/kaiser-applies-new-green-scorecard-medical-supply-chainP&G scorecard http://www.pg.com/en_US/news_views/blog_posts/2010/may/sustainability_scorecard.shtml
  • Sony “Road to Zero” program are based on four environmental perspectives: climate change, resource conservation, control of chemical substances and biodiversity and six product lifecycle stages: business operations, take back and recycling, Research and development, product planning and design, distribution and procurement. Develop and refine “3R” (Reduce,Reuse,Recycle) technologies that reduce the use of nonrenewable resources and water and the generation of waste throughout product life cycles
  • Coke, best Buy, aveda, Ford, GM, General Mills, nike, Dell
  • Green dominoes – need to keep up with competition greener than the next guy
  • Pacific Northwest Pollution Prevention Resource Center

Adams - Greening Your Supply Chain Adams - Greening Your Supply Chain Presentation Transcript

  • Greening Your Supply Chain
    Georjean L. Adams
    EHS Strategies, Inc.
    Environmental Initiative BES
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Ideal Supply Chain Life Cycle
    Make
    Use
    Supply
    Recycle
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Real Life
    Emissions, discharges
    and exposures
    Make
    Raw Materials
    and Energy use
    LIFE CYCLE
    IMPACTS
    Supply
    Use
    Recycle
    Inefficient yield
    and transfer
    Safety and toxicity
    hazard
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Why Green Your Supply Chain?
    dollar savings through energy, materials and waste reduction
    avoid regulatory costs and liabilities
    enhanced reputation - brand and employee loyalty
    customer demand for environmentally preferred/green
    Reduced impact on the environment
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Real Life
    $
    Emissions, discharges
    and exposures
    Make
    $
    Raw Materials
    and Energy use
    LIFE CYCLE
    IMPACTS
    $
    $
    Supply
    Use
    Recycle
    Inefficient yield
    and transfer
    Safety and toxicity
    hazard
    $
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Inputs Outputs
    Energy
    Product
    Raw Materials
    Emissions
    Solid & Liquid wastes
    Wastewater
    waste
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Green Inputs Green Outputs
    energy
    product
    RAW MATERIALS
    wastes
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Greener Resources
    Renewable
    Low “embedded” energy
    Low GHG/carbon footprint
    Low toxicity
    Biodegradable
    Recycled content
    Recyclable
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Green and Lean
    Reduce Inputs/Waste
    Recycle/Reuse Wastes
    energy
    PRODUCTS
    Raw materials
    Wastes
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Lean Suppliers = Greener Suppliers
    • Overproduction
    • Inventory
    • Transportation
    • Defects
    • Over processing
    • Waiting
    • Energy [GHG, nonrenewable fuels]
    • Materials and water consumption
    • Waste - hazardous and solid
    • Air pollution
    • Water pollution
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Why Green Your Supply Chain?
    dollar savings through energy, materials and waste reduction
    avoid regulatory costs and liabilities
    enhanced reputation - brand and employee loyalty
    customer demand for environmentally preferred/green
    reduced impact on the environment
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Why Green Your Supply Chain?
    dollar savings through energy, materials and waste reduction
    avoid regulatory costs and liabilities
    enhanced reputation - brand and employee loyalty
    customer demand for environmentally preferred/green
    reduced impact on the environment
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • 8/18/2011
    ©2011 EHS Strategies, Inc.
  • Why Green Your Supply Chain?
    dollar savings through energy, materials and waste reduction
    avoid regulatory costs and liabilities
    enhanced reputation - brand and employee loyalty
    customer demand for environmentally preferred/green products (esp. B2B)
    Reduced impact on the environment
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Customers Want to be Green
    B2B, Government and Consumers
    Environmentally preferred purchasing
    Bio-based
    Renewable
    Recycled content
    Recyclable
    Low energy
    Less toxic
    Reduced packaging
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • B2B Demands for Information
    Regulatory Compliance Declarations
    RoHS, REACH SVHC
    Inventories
    Conflict Minerals
    Customer Black Lists
    Regulatory + company “hit” list
    OEM data bases – IMDS (auto), BOMcheck (electronics)
    Full Material Declaration
    Rapid response to new listings
    Life cycle assessment
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Sustainability Index
    Energy and Climate: Reducing Energy Costs and Greenhouse Gas Emissions
    Material Efficiency: Reducing Waste and Enhancing Quality, Packaging
    Natural Resources: Responsibly Sourced Raw Materials
    People and Community: Ensuring Responsible and Ethical Production
    Sustainability Consortium with 30 other firms
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Sustainable Apparel Coalition
    http://www.apparelcoalition.org/http://ecoindexbeta.org/
    Adidas …Environmental Defense Fund…Gap Inc., HanesBrands…JC Penney, Kohl’s Department Stores… Levi Strauss & Co… L.L.Bean, Marks & Spencer … Nike, Nordstroms… Patagonia… PUMA, REI … Target, Timberland, USA DuPont, EPA … Walmart
    Engage upstream suppliers to collect data for index
    Minimal level of specified best practices
    Share best practices to improve whole industry supply chain
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Supplier Scorecard
    Energy Usage – electric, fuel, renewable
    Water Usage – input/withdrawal, output/discharge
    Waste Disposal – hazardous and nonhazardous, recycled
    Kyoto gases – direct and indirect
    Annual output used to calculate intensity of above
    P&G Sustainability Ideas & Initiatives
    Fines & Sanctions
    Environmental Management System
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Kaiser Permanente Supplier Scorecard
    Corporate: sustainable policy, reporting, ISO, local food, waste, recycling, GHG, EPEAT, Energy Star, materials composition
    SKU: BPA, RoHS, halogens, phthalates, Prop 65, antimicrobials, hazardous waste, reusable, recycled content, composition
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Life cycle assessment of their products
    Cradle to cradle
    two-hour tour of suppliers' facilities
    documentation of the supplier's environmental policies and performance
    follow-up done every 12 to 18 months
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Suppliers shall commit to reducing the environmental impact of their designs, manufacturing processes, and waste emissions.
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Roadmap to Sustainability:
    Companies will ensure that suppliers meet the same environmental and social standards as the company has set for its internal operations
    - including disclosure of goals and performance metrics
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Why Green Your Supply Chain?
    dollar savings through energy, materials and waste reduction
    avoid regulatory costs and liabilities
    customer demand for environmentally preferred/green
    enhanced reputation - brand and employee loyalty
    reduced impact on the environment
    Sustainability (green + economics + social)
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • 8/18/2011
    ©2011 EHS Strategies, Inc.
  • Ask Yourself
    Do you understand the environmental/health impacts associated with your products throughout their life cycle?
    Who your suppliers are?
    What is in your raw materials and products?
    What happens downstream - distributors, users and disposal?
    What do your customers want?
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Benchmark
    Standards: Global Reporting Initiative, ISO 14000, Ceres, Natural Step, Responsible Care
    Relevant business leadership groups
    Identify your strengths and weaknesses
    8/18/2011
    ©2011 EHS Strategies, Inc.
  • Communicate with Supply Chain
    Develop shared goals and targets
    Measure
    Evaluate and improve
    8/18/2011
    ©2011 EHS Strategies, Inc.
    Get comfortable with TRANSPARENCY
  • Resources
    Case Studies: http://www.pprc.org/pubs/grnchain/casestud.cfm
    Green Suppliers Network: http://www.greensuppliers.gov/
    EPA Lean: http://epa.gov/lean
    MnTAP: http://www.mntap.umn.edu
    Network for Business Sustainability http://nbs.net/knowledge/supply-chain/
    http://Ehsstrategies.com
    8/18/2011
    ©2011 EHS Strategies, Inc.