Brand collaboration on Sustainable and Responsible Supply Chains

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A presentation from the "Getting to Grips with Corporate Responsibility" online training series from G2G Training, a joint venture between Stakeholder Intelligence and Daisywheel Interactive. To find out more head to: http://g2g-training.com

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Brand collaboration on Sustainable and Responsible Supply Chains

  1. 1. Supply  Chains:  Brand  Collabora3on   An  analysis  of  some  Sustainability/Corporate  Responsibility   Collabora3ons     Slides  extracted  as  sample  from  the  “Ge?ng  to  Grips  with   Corporate  Responsibility”  Online  training  series    
  2. 2. The  Sustainable  Apparel  Coali3on     •  80  leading  apparel  and   footwear  brands,   retailers,  suppliers,   nonprofits,  and  NGOs     •  Given  huge  impetus  by   Greenpeace  Toxics   campaign  in  2011/12  
  3. 3. The  Sustainable  Apparel  Coali3on     Ambi3ous  2020  agenda  based   around:       •  Water  Use  &  Quality   •  Energy  &  Emissions   •  Waste   •  Chemicals  &  Toxicity   •  Social  and  Labour  improvements  
  4. 4. The  Sustainable  Apparel  Coali3on     Tool  developed  and  being  trialled:  Higg  Index  1.0:       “An  indicator  based  tool  for  apparel  that  enables   companies  to  evaluate  material  types,  products,   facili3es  and  processes  based  on  a  range  of   environmental  and  product  design  choices.         The  Index  asks  prac3ce-­‐based,  qualita3ve   ques3ons  to  gauge  environmental  sustainability   performance  and  drive  behavior  for   improvement.”  
  5. 5. The  Sustainable  Apparel  Coali3on     Pros:     •  Raises  bar  for  companies   •  Mechanism  for  dialogue  with   NGOs   •  Creates  collabora3on  and   sharing  for  new  tools,   processes  and  result  sharing   Cons:   •  What  about  all  those  non-­‐ branded  goods?   •  Does  it  just  increase  the  gap   between  the  leaders  and  the   rest?   •  Does  it  help  legal  enforcement   in  China,  India  etc?    
  6. 6. Heathrow  Sustainability  Partnership   •  Established  in  2010,  trialled   in  2011   •  Partnership  brings  together   15  companies  including   airlines,  retailers,   construc3on  companies,   food  service  providers  and   car  rental  businesses  
  7. 7. Heathrow  Sustainability  Partnership   •  15  companies  represent  75%  of  all   the  staff  working  at  Heathrow   •  An  employment  and  skills  academy   for  construc3on,  logis3cs  and   avia3on  established  in  its  pilot  year     •  Heathrow  now  boasts  the  world’s   largest  employee  car-­‐sharing  scheme  
  8. 8. Business  for  Social  Responsibility/Forum  for  the  Future     Run  sector-­‐  and  issue  -­‐ specific  working  groups   and  ini3a3ves:  shipping   and  cargo,  coal,  water  and   procurement,  etc…      
  9. 9. Business  for  Social  Responsibility/Forum  for  the  Future     Pros:     •  Gathers  leadership   groups  together  /  Peer   pressure   •  Helps  set  (policy)  agenda   •   Collabora3ve  learning   Cons:     •  Free-­‐rider  members  with   ligle  interest  in  changing?   •  Scale  and  teeth:  Can  they   evolve  and  grow?    
  10. 10. Supply  Chain  Risk  Collabora3on:  Automo3ve   •  2013:  Aston  Mar3n  and  Jaguar   Land  Rover  teamed  up  with   Toyota  and  Achilles  (vendor)   •  Created  tool  to  map  their  supply   chain  networks     •  Seeking  areas  where  they  are   exposed  to  natural  disasters,  as   well  as  financial  and  reputa3onal   risks  
  11. 11. Vodafone:  Turkey  Farmers  Club   Vodafone  Farmers'  Club  offers  special   rates  &  info  to  farmers     •  Mobile  tech  to  improve  incomes  &   increase  efficiency/sustainability   •    500,000  signed  up  to  the  Farmers'   Club  so  far.  Par3cipa3ng  farmers   have  increased  produc3vity  by  about   €100m  
  12. 12. Vodafone:  Turkey  Farmers  Club   SMS  alerts  on:     •  Regula3ons,  financial,  weather     •  Market  price  quotes  linked  to  loca3on  and   produc3on     Partnership  with  Sekerbank:  Farmers  pay  mobile   phone  bills  post-­‐harvest     Benefits  to  Vodafone:  Customer  loyalty,  mass   revenue  streams  
  13. 13. Conclusions  and  Future  Trends     •  B2B  collabora3on  driven  by   the  sheer  scale  of   sustainability  challenge     •  By  need  to  "normalise"   sustainable  behaviour  in   supply  chains  and    markets  
  14. 14. Conclusions  and  Future  Trends     “Changing  every  product,  factory  and   raw  material  source  in  your  supply   chain  and  encouraging  every   customer  to  consume  differently   defies  the  ability  of  even  the  largest   business  alone”     (Mike  Barry,  Head  of  Sustainable             Business,  Marks  &  Spencer)  
  15. 15. Conclusions  and  Future  Trends  (cont)   •  The  new  economy  will  also  be   horizontal,  not  ver3cal.  This   requires  new  alliances/ partnerships   •  Tradi3onal  barriers  between   industrial  sectors  will  break  down   as  a  circular  economy  forms  
  16. 16. Conclusions  and  Future  Trends  (cont)   •  Expect  more  collabora3on  around   commodi3es.  No  single  business   purchases  enough  volume  to  shin  the   market  alone  (Palm  Oil,  Soy,  Cogon)   •  There  will  be  greater  collabora3on   around  waste  and  raw  materials.   One  company  will  seek  to  convert   waste  into  another  company’s  raw   materials  and  vice  versa  
  17. 17. Conclusions  and  Future  Trends  (cont)   •  Technology  sector  is  also  likely  to   witness  greater  business  to  business   collabora3on   •  Mobile  phone  technology,  for   example,  can  offer  the  solu3ons  to   other  industrial  sectors’  sustainability   challenges.  Supply  chain   transparency  may  be  just  one  of   these  areas  
  18. 18. Was  this  useful?  Would  you  like  the  video  version?   Then  sign  up  for  updates  and   informa3on  on  our  online   training  courses  at:   hgp://g2g-­‐training.com   Courses  on  Repor3ng,   Communica3ons,  Supply  Chain,   Community,  Risk  and  Materiality   management  also  available  soon   This  presenta3on  is  from  our   “Ge?ng  to  Grips  with  Corporate   Responsibility”  Eight  module   online  course.     The  next  one  starts  on  March  24   2014.  Sign  up  here:   hgp://g2g-­‐training.com/ course1.php  

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