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Role of leadership in sustainable sourcing

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  • http://www.unglobalcompact.org/Issues/supply_chain/index.html

Role of leadership in sustainable sourcing Role of leadership in sustainable sourcing Presentation Transcript

  • The role of leadershipin sustainable sourcing-a strategic andoperational outlookISMC workshop16 December 2011
  • Introduction Background and objectives for todays workshop Why are we here today? Objectives for today ■ Enhance knowledge and build capacity on corporate sustainability and the relation with procurement/ supply chain management ■ Explore the operational sustainability challenges in procurement© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 2independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Introduction KPMG’s team KPMG workshop facilitators with you today Bernd Hendriksen John Tros Position Practice leader KPMG Position Climate Change & Partner Operations Sustainability, Netherland Strategy Group of KPMG s. Management Consultants Experience Experience Extensive experience in Extensive experience in delivering Sustainability providing strategic advice advisory and assurance on procurement and services to top-global supply chain. companies.© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 3independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Agenda o 13.00 Meaning and value of sustainability • Backgrounds on corporate sustainability trends & state of play • The business case for a sustainable supply chain • Company responses to sustainability in supply chain o 13.20 1st round of discussion – Sustainability awareness  13.45 Addressing challenges in sustainable procurement & supply chain management • Procurement styles on the move • Sustainability impacts the complete process and organisation (procurement & supply chain) • Value chain approach • 14.05 2nd round of discussion – How to implement sustainability in your procurement organisation?  14.30 Wrap-up – what is your take away to become leading in sustainable supply management?© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 4independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Meaning and value ofsustainability
  • Four global trends are shaping the world’s future1. 2. 3. 4.Energy prices and Climate change Natural resource Population growth energy security pressures and lifestyle changes© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 6independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Four global trends are shaping the world’s futureDeclare disbelief in any one or more of these trends – but the consequences don’t changefundamentally:There will be pressure to reduce energy useThere will be an increasing share of renewable energyThere will be pressure to reduce biodiversity lossThere will be pressure to price water appropriately and to manage it efficientlyThe drive to enhance resource efficiency and recycling will grow furtherThere will be an increase in legal and regulatory risk© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 7independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • So, what can business do? The worst you can do is nothing. The story never ends well for the rabbit in the headlights! Getty Images© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 8independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Meaning and value of sustainabilityWhat is your personal association with sustainability?Definition and terminology?■ Sustainable sourcing■ Ethical sourcing■ Sustainable procurement■ Green procurement■ Responsible Supply Chain Management■ Ketenverantwoordelijkheid■ Duurzaam inkopen■ ….© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 9independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Meaning and value of sustainabilityDefinition of sustainability In the end: you define sustainability 1987 1995 2008 2011 Shared Corporate Social value Responsibility (CSR) Social innovation “The concept of shared value “A novel solution to a social can be defined as policies and "Corporate Social Responsibility problem that is more operating practices that enhance is the continuing commitment by Sustainable effective, efficient, sustainable, the competitiveness of a business to behave ethically and or just than existing solutions company while simultaneously Development (SD) contribute to economic and for which the value advancing the economic and development while improving the “Development that meets the created accrues primarily to social conditions in the quality of life of the workforce and needs of the present without society as a whole rather than communities in which it operates their families as well as of the compromising the ability of private individuals.” – Phills …” – Michael E.Porter and Mark local community and society at Jr., Deiglmeier e Miller, Center future generations to meet large.“ – The World Business R. Kramer, The Big Idea: their own needs.” – The for Social Innovation, Stanford Creating Shared Value, Harvard Council for Sustainable Brundtland Report (‟87) Graduate School of Business Business Review Development (WBCSD)© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 10independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Asian countries Meaning and value of sustainability European countries The ultimate challenge of sustainable development Latin American and Caribbean countries North American countries Meeting the dual goals of sustainability: High human development and low ecological impact Oceanian countries United Arab UNDP threshold for high human development Emirates 12 African countries United States EcologicalFootprint (global hectaresper person) Asian countries 10 European countries Latin American and Caribbean countries 8 Netherlands North American countries Germany Oceanian countries 6UNDP threshold for high human development 12 World averagebiocapacity per person in 1961 4 China EcologicalFootprint (global hectaresper person) 10 World averagebiocapacity per person in 2006 2 High human development 8 w ithin the Earth‟s limits 0.2 6 0.4 0.6 0.8 1.0 United Nations Human Development Index 4 (life expectancy, education level and purchasing power) Source: © Global Footprint Network (2009). Data from Global Footprint Network National Footprint Accounts, 2009 Edition; UNDP Human Development Report, 2009 2 High human development w ithin the Earth‟s limits © 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 11 independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and 0.8„cutting through complexity‟ are registered trademarks of KPMG International. 1.0
  • Taking responsibility for the suply chain in which you operate! Poll: My procurement strategy follows from the CR strategy Organisation and people Corporate Strategic strategy Contract sourcing management CR strategy Procurement strategy Supplier Purchase relationship to pay Processes management Category management Technology Performance© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 12independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Meaning and value of sustainability Background – Sustainability topics mapped Sustainable development Economy Environment Social structure Governance ■ Sustainable growth and ■ Innovation ■ Improved safety ■ Transparency & disclosure progress ■ Operational eco-efficiency ■ Community well-being ■ Code of conduct ■ Conventional fossil fuel ■ Carbon sequestration ■ Employee diversity/equal ■ Suppliers relationships source ■ Efficient use of materials opportunity ■ Linking performance to Potential ■ Natural gas – Bridging ■ Refining/cleaner fuels ■ Develop local remuneration opportunities fuel. competencies ■ Renewable energy ■ Supplier diversity ■ New energy sources. ■ International reputation ■ Insatiable energy growth. management ■ Population growth. ■ Emissions reduction/ ■ Climate risk – Physical ■ Health & safety risks ■ Transparency and compliance risks to assets ■ Community impacts disclosure ■ Supply security/risk of ■ Water scarcity ■ Labour rights ■ Bribery and corruption disruption ■ Environmental policy ■ Community safety/social ■ Increased captex/opex ■ Biodiversity & habitat license Potential investments risks protection ■ Geopolitical risks ■ Competitive threats ■ Carbon price/trading ■ Spread of infectious ■ Customer relationships/ ■ Environmental impact of diseases reputation decommissioning ■ Stakeholder engagement ■ Fuel directives ■ Waste ■ Standards for suppliers ■ Spills/leaks© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 13independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Meaning and value of sustainabilityWe see different levels of maturity Transformational Response Sustainability is an integral Strategic response part of business decision making. Traditional response Non-responsive Creating sustainable Stakeholder Value value with suppliers Sustainable products/ services Sustainability as compliance/ reactive Sustainability as a license to operate Risk management Sustainability isolated Executive Board involved Embedding sustainability throughout value chain Business Value & maturity© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 14independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Sustainability communicationBe good in your supply chain and tell itSustainability has clearly moved from being a moral imperative to a critical business issue  Reputation continues to drive CR reporting; innovation & learning is rapidly gaining appreciation Reputation or brand (e.g.… Cost savings Ethical considerations Increased revenues/position in Employee motivation current market Innovation (e.g. new… Total % Risk management or risk reduction Market position in new markets Access to capital or increased… Market value/stock price Economic considerations Other Strengthened supplier relationships 0% 10% 20% 30% 40% 50% Market position (market share)… Improved relationships with… Cost savings 0% 20% 40% 60% 80% 100% Source: KPMG Global CSR reporting Survey – 2011 (what drives sustainability reporting?)© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 15independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Moderated discussionSustainability awareness I am transparent I collaborate with on supplier the sustainability sustainability officer performance I‟m taking responsibility on sustainable supply management© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 16independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Sustainability inprocurement
  • Sustainability in procurementSustainability and procurement challenges 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 impact the supply chain. How will this impact your Investment analysts increasingly integrating ESG (environmental, social and governance) procurement & factors. supply chain departments? Increasing focus on resource efficiency and waste reduction as key drivers of improvement and business value. Evidence that poor management of sustainability risks can result in significant costs, depressed sales and broader reputational harm.© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 18independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Sustainability in procurement Value chain awareness Poll: I know all my suppliers in the value chain and how they impact my products/services Value delivery Produce Procure Sales Tier 3 Tier 2 Tier 1 Client Supplier Supplier Supplier Value definition© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 19independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Sustainability in procurementProcurement styles Traditional vs Modern Commoditise and exert maximal power on Analyse complete value chain include suppliers to balance conflicting priorities of environmental, social and economic quality, control and risk: considerations in sourcing decisions: ■ Outsource to low wage countries ■ Create shared objectives; ■ Transfer risks to suppliers/resellers ■ Link demand with supplies; ■ Increase payments terms ■ Flexibilise the value chain from start; ■ Implement “one sided” codes of conduct ■ Use and measure code for dialogue Focus Focus Lower costs by lower prices. Lower costs by improvement of supplier quality and On products and services that can be influenced productivity. directly. On products and services that can be influenced.© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 20independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Sustainability in procurementCR needs to be embedded in procurement & supply chain management Strategy Selection Contracting Management development process process Focus on desirable Implement CR Implement KPIs that Measure KPIs. posture in value selection criteria in measure CR. Ensure supplier is chain. process (code of Implement systems meeting agreed What is best sourcing conduct plus category which will encourage timelines. strategy to meet this specific criteria). suppliers to meet CR Enhance supplier posture. Ensure that suppliers goals. development. Determine how to meet these selection Create ways to measure value add of criteria. ensure that supplier certain CR items. Understand what it has tool to achieve would mean for the desirable criteria. suppliers to meet criteria.© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 21independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Sustainability in procurementReally know the issues in your supply chain Value chain Supply/ Value chain Supplier share External Sourcing strategies characteristic demand dynamic factors 4500 4000 •Backward integration. Thousand tonnes 3500 43% Product A 3000 2500 57% •Development 2000 1500 1000 500 0 2004 2005 2006 2007 2008 2009 2010 2011 of competitive suppliers. Consumption Production •Resource securement. •New supplier operating models. 4500 •Internal capability development. 4000 Thousand tonnes 3500 3000 43% Product B 2500 2000 57% •Raw material substitution. 1500 1000 500 0 2004 2005 2006 2007 2008 2009 2010 2011 Consumption Production© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 22independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Sustainability in procurementWhat will happen if procurement stays on the leverage game? Producer Trader Exporter Producer Retailer Consumer Power balance will shift Higher prices than Decreased Decreased direct Not the preferred the market competitive decision product profitability client of choice© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 23independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Sustainability impacts your complete procurement process& organisation People development should not focus on Auditing performance. creating leverage but managing suppliers. Organisation and people Corporate Strategy, CR Strategy and Procurement Developing suppliers. Strategy should be Corporate Strategic strategy Contract integrated. sourcing management CR strategy Develop sourcing Procurement strategy Developing strategies strategies that focus Supplier Purchase relationship per category/ on supplier efficiency to pay Processes management commodity. and productivity. Category management Implement systems to Measure and reward Technology minimize procurement on CR Performance administrative and performance. process burden.© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 24independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Sustainability in procurementThe scope of sourcing will extend significantly Traditional approach Modern approach Quality/ Risk Sustainability Supply chain performance + Cost + profile + considerations = value creation Sustainability considerations – Management of key risks and opportunities Environmental: Reduce overall consumption of goods and services; Understand the carbon footprint of your supply chain; Encourages 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; Considers increases in revenue by taking sustainable option; Build disposal into the total life cost model Governance: Metrics, capabilities and roles© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 25independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Moderated discussionSustainability in procurement challenges My procurement I exactly now the organization is sustainability ready for this issues in my change? supply chain! I am aware that sustainability issues can influence my business?© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 26independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Wrap up
  • Wrap upWhat’s your number one take away of today? #1© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 28independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • Contact details
  • KPMG Climate Change & Sustainability Bernd Hendriksen Hendriksen.bernd@kpmg.nl KPMG Strategy & Operations© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands John Trosunder number 33263682, is a subsidiary of KPMG Europe LLP and a memberfirm of the KPMG network of independent member firms affiliated with KPMGInternational Cooperative („KPMG International‟), a Swiss entity. All rightsreserved. Printed in the Netherlands. The KPMG name, logo and „cutting through Tros.john@kpmg.nlcomplexity‟ are registered trademarks of KPMG International.
  • Checklist/ ReserveChallenging questions/ statements Internal use only!! ■ We exactly now the sustainability issues in our supply chain ■ Riskmanagement with our suppliers is already on a high level ■ We know the company goals for supplier performance on sustainability ■ We have established internal goals & kpi;s to measure performance ■ We engage with our suppliers on a regular basis ■ We use the information of supplier self-assesments to monitor progress ■ Knowledge management on sustainability in procurement is well organized ■ We regularly work in multifunctional teams, including our sustainability experts ■ In which categories can we achieve the highest sustainability value? ■ We know about sector industry collaboration initiatives on sustainable supply chain management (of: We work together with competitors on supply chain issues) ■ We regularly share resources/ knowledge with our suppliers on sustainability© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 31independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.
  • CR reporting at industry levelPercentage of industries reporting on corporate responsibility, 2008–11© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 32 FOR INTERNALindependent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and USE ONLY„cutting through complexity‟ are registered trademarks of KPMG International.
  • KPMG delivers global supply chain and sustainability capability KPMG Capability Global & local Advanced research Experience & Professional staff methodologies and & knowledge management credentials tools  Supply chain  Supply chain  Industry  Experience management optimisation knowledge and across insights industry  Sustainability  Sustainability sectors professionals lens (supply  Knowledge chain) repositories  Involvement  Broader with industry business  Broader BPI  Research skills bodies and performance tools and and capabilities forums improvement methodologie (BPI) skills s  Thought  Ongoing leadership training and  Hypothesis- professional based development© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 33independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and approach„cutting through complexity‟ are registered trademarks of KPMG International.
  • Meaning and value of sustainabilityBusiness benefits of sustainable supply chain management identified by the UNGlobal Compact* Incorporating environmental, social and governance considerations into supply chain management can deliver a range of business benefits: ■ Risks are better anticipated and managed (risk is spread out across different players) ■ Reduced operational risks such as disruption to supply, increased cost and lack of access to key raw materials ■ “Informal” or “social” license to operate within communities, legal systems and governments that otherwise might be antagonistic ■ Reduced costs and enhanced efficiency and productivity ■ Improved working conditions can reduce turnover and improve quality and reliability ■ Environmental responsibility improves efficiency and profitability ■ Corporate brand and values, and customer and consumer confidence and loyalty are protected and enhanced ■ Process and product innovation. Empowered suppliers uncover opportunities for developing sustainable products and services ■ Examples from leading companies show that good supply chain management can increase shareholder value * http://www.unglobalcompact.org/Issues/supply_chain/index.html© 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of 34independent member firms affiliated with KPMG International Cooperative („KPMG International‟), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and„cutting through complexity‟ are registered trademarks of KPMG International.