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SCM sostenibilidad
 

SCM sostenibilidad

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  • Notes Headlines indicative of our global changing landscape. Over past year, barely a week has gone by without ‘ CR ’ issues in headlines. ‘ The great & the good ’ of business lining up to give thoughts on the topic. How are these headlines and quotes changing? e.g., Increasing board-level involvement; use as a competitive tool (as in retail). Use examples appropriate to audience. Why the boom? Scandals at Enron and WorldCom undermined trust in the big business Stern report- costs of extreme weather alone could reach 0.5-1% of world GDP per annum by 2050 IPCC has found that concentrations of carbon dioxide (Co2) in the atmosphere have increased by 35% in the past 250 years, by far exceeding the natural variations over the past 650,000 years. 11 of the last 12 years (1995-2006) rank among the 12 warmest years in the instrumental record of global surface temperature 167 countries now signed up to Kyoto protocol A search on Google scholar for the phrase ‘ corporate social responsibility ’ produced 12,500 citations A more general search of the internet on Google for the phrase ‘ corporate social responsibility ’ produced more than 12,900,000 results. Company examples Marks and Spencer's- just some of their pledges: help to give 15,000 school children in Uganda a better education, saving 55,000 tonnes of C02 per year, has recycled 48million clothes hangers, it aims to convert 20m garments to Fair-trade cotton. Named and shamed: City ’ s ethical dunces Instalment of the good companies guide by the observer. Sports Direct- the retail group controlled by billionaire Mike Ashley, emerges as the least ethical firm- should be doing more to reassure investors it is not exposed, also lack of clarity over supply chain. Media firm Euro money Institutional Investor, controlled by the daily Mail and general Trust, comes a close second. Its classifies share structure is seen to disenfranchise smaller shareholders and the board lacks the independent representation that minority shareholders might expect. Also in the list- Kazakh mining giant Kazakhmys – 32 deaths last year. QUESTIONS TO ASK PARTICPANTS How do you define CR in your organization? Have you received any press on your CR? How had your sector responded top CR? Are there any specific issues affecting you as a business?

SCM sostenibilidad SCM sostenibilidad Presentation Transcript

  • 1 Sustainable Supply Chain Overview What’s the Issue? • Stakeholder pressure for companies to measure and reduce greenhouse gas emissions across supply and value chains • Increasing Government focus on sustainable procurement – placing pressure on suppliers and service providers • Changing consumer trends and expectations • Investment analysts increasingly incorporating environmental, social and governance (ESG) factors • Increasing focus on resource efficiency and waste minimization as key drivers of innovation and business value • Evidence that poor management of sustainability risks can result in significant costs, depressed sales and broader reputational harm.
  • 2 Sustainable Supply Chain What Does it Really Mean? Supply Chain experts have, for many years, balanced conflicting priorities of quality, cost, and risk. In today’s world, decisions often need to incorporate environmental, social, and economic considerations. A major British department store estimated that they have a direct influence on less than 10 percent of the life cycle of their products. Sustainable supply chain is about ‘managing the impact’ of the remaining 90 percent. CostCostQuality/ performance Quality/ performance SUPPLY CHAIN VALUE EQUATION SUPPLY CHAIN VALUE EQUATION =Risk profile Risk profile + + + Environmental: reduce overall consumption of goods and services; understand the carbon footprint of your supply chain; encourage product re-usage and resale; reduce waste and water pollution. Social: understand human rights impact within your supply chain; manage the labor issues within your supply chain; work against corruption in all its forms. Economic: seek to offset potential increased pricing through lower consumption; consider increases in revenue by taking sustainable option; build disposal into the total life cost model. Environmental: reduce overall consumption of goods and services; understand the carbon footprint of your supply chain; encourage product re-usage and resale; reduce waste and water pollution. Social: understand human rights impact within your supply chain; manage the labor issues within your supply chain; work against corruption in all its forms. Economic: seek to offset potential increased pricing through lower consumption; consider increases in revenue by taking sustainable option; build disposal into the total life cost model. HOLISTIC APPROACH TRADITIONAL APPROACH Sustainability considerations Sustainability considerations Sustainability considerations – management of key risks and opportunitiesSustainability considerations – management of key risks and opportunities
  • 3 Sustainable Supply Chain Overview Triggers for an Organization’s Supply Chain Sustainability Response Product improvement or consolidation Process redesign/ transformation Competitive positioning (e.g. low carbon products, fair trade, organics) NGOs* pressure and campaigns (e.g. child labor, farming practices, certified wood products) Legislative change (e.g. greenhouse gas emissions reporting) Customer attraction and retention (e.g. ‘green’ purchasing criteria) Resource price, availability & substitution (e.g. rise of bio- plastics/alternative feed stocks) Investor pressure and reporting expectations (e.g. Carbon Disclosure Project (CDP)) Corporate sustainability targets (e.g. contribution towards internal targets) Risk management (e.g. improved management of potential supply chain events) Resource efficiency (e.g. reduced waste production, reduced input costs) Value creation (e.g. improvement and introduction of new products and services) Contract review Development of a low cost country sourcing strategy Typical triggers for organization’s supply chain sustainability response * Non-Government Organizations
  • 4 Sustainable Supply Chain Overview Where is the Value to an Organization? The value proposition of sustainable supply chain management: Other potential benefits to be gained: • Improved communication with shareholders on material sustainability risks and opportunities • Improved management of issues associated with resource scarcity and/or resource substitution • Improved confidence and knowledge to respond positively to critical media reporting. Cost reduction Revenue growth Reputation enhancement Risk management Increased resource efficiency; rationalization of assets and suppliers; reduction in waste; reduction in packaging; reduction in disposal costs from removing hazardous materials from design; compliance with regulatory requirements can remove potential cost of non-compliance. Introduction of environmentally or socially responsible products and services; penetration of new ‘responsible’ consumer markets. Protection and enhancement of corporate reputation as a socially and environmentally responsible enterprise; improve employee morale and retention. Create collaborative relationships with supply chain partners. Improved transparency in identifying and managing supply chain events and risks; respond to regulatory changes appropriately; protect brand and reputation.
  • 5 Sustainable Supply Chain Overview Alignment Between SCO and the SSC Supply Chain Optimization This SCO methodology describes the business changes that are required to enhance an organization’s supply chain model from the perspective of a number of often-interrelated perspectives (lenses). Sustainability is one of the eight lenses. The methodology starts by assessing the existing supply chain model in terms of its support for the business strategy and taking into account the business environment, products, services and markets, and enterprise core competencies and capabilities. This leads to the development of a series of improvement hypotheses. The subsequent diagnostic is driven and scoped by the hypotheses and analysis is conducted to verify the hypotheses using the various lenses. This results in identification of a series of improvement projects organized into a program. Short-term improvement opportunities are identified and implemented as a means of achieving early potential business benefit and as a means of funding the broader redesign of the supply chain model.
  • 6 Sustainable Supply Chain Overview SCO model
  • 7 Sustainable Supply Chain Overview Applying the Sustainability Lens within a SCO opportunity • Sustainability Positioning Review • Sustainability Positioning Assessment • Materiality Assessment • Develop sustainable supply chain hypotheses • High-level mapping and analysis of the supply chain • Diagnose enterprise positioning within the SSC model • Diagnose specific elements of the SSC model • Refine hypotheses • Consider lens alignment • No additional guidance • No additional guidance • No additional guidance DesignDesign MonitorMonitorImplementImplementPlanPlan DiagnosticDiagnostic PlanPlan DesignDesign MonitorMonitorImplementImplementDiagnosticDiagnosticPlanPlan DiagnosticDiagnostic Help develop future state design and implementation plan Help implement the design Help monitor and implement lessons learned Help diagnose opportunities Enterprise strategy review and assessment SUPPLY CHAIN OPTIMIZATION METHODOLOGY SUSTAINABILITY LENS
  • 8 Sustainable Supply Chain Overview Sustainable Supply Chain Model Two additional supply chain-related components have been included in relation to ‘Design’ and ‘Service and End of Life’. Information on each component within the SSC model is provided within this section. SUSTAINABLE SUPPLY CHAIN MODEL SourceSource OperateOperate DeliverDeliver Service & End of lifeService & End of life SuppliersSuppliers CustomersCustomers Coordination and collaboration with channel partnersCoordination and collaboration with channel partners Plan and ManagePlan and Manage DesignDesign
  • 9 Appendix Scope 1, 2, and 3 GHG Emissions The GHG Protocol has classified GHG emissions into three key categories. It is important to understand the difference between the 3 scope categories as they underpin all legislation in this area. Scope 1: Direct GHG emissions Direct GHG emissions occur from sources that are owned or controlled by the company. For example: emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc., emissions from chemical production in owned or controlled process equipment. Scope 2: Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated as Scope 1 emissions but are also counted by the consumer as Scope 2 emissions. Scope 3: Other indirect GHG emissions Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Some examples of Scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels, and use of sold products and services.
  • 9 Appendix Scope 1, 2, and 3 GHG Emissions The GHG Protocol has classified GHG emissions into three key categories. It is important to understand the difference between the 3 scope categories as they underpin all legislation in this area. Scope 1: Direct GHG emissions Direct GHG emissions occur from sources that are owned or controlled by the company. For example: emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc., emissions from chemical production in owned or controlled process equipment. Scope 2: Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated as Scope 1 emissions but are also counted by the consumer as Scope 2 emissions. Scope 3: Other indirect GHG emissions Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Some examples of Scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels, and use of sold products and services.