Measuring	
  real	
  socio-­‐environmental	
  Impacts	
  	
  
	
  along	
  Value-­‐chains	
  	
  
November	
  4	
  2013	
 ...
The	
  Problems	
  	
  
• 

Data	
  overload	
  
–  Companies	
  are	
  engaged	
  in	
  con3nuous	
  improvement	
  of	
 ...
Too	
  many	
  tools,	
  each	
  serving	
  a	
  small	
  purpose	
  

Shared	
  methodologies	
  into	
  a	
  single	
  F...
Added	
  impacts	
  procedure	
  	
  

+	
  improvements	
  over	
  Cme	
  	
  

Traceability	
  ,	
  Align	
  business	
 ...
General	
  idea	
  :	
  	
  1	
  data	
  =	
  different	
  answers	
  
DO	
  the	
  Job	
  once,	
  report	
  as	
  many	
 ...
Methods	
  available	
  /	
  under	
  development	
  in	
  MYRMEX	
  

• 

Product	
  traceability	
  &	
  Compliance	
  
...
So?ware	
  Pricing	
  
MYRMEX	
  regular	
  price	
  framework	
  =	
  	
  each	
  user	
  pays	
  for	
  its	
  own	
  us...
User	
  Centered	
  Features	
  –	
  Basic	
  rules	
  	
  

• 

Rule	
  #1	
  :	
  Your	
  Data	
  are	
  NEVER	
  disclo...
User	
  Centered	
  Features	
  –	
  Step	
  by	
  Step	
  approach	
  

• 

Step	
  #1	
  :	
  Define	
  organisa3on	
  &	...
Ongoing	
  developments	
  –	
  Manage	
  alloca3on	
  

• 
• 

Different	
  methods	
  repec3ng	
  interna3onal	
  standar...
Ongoing	
  developments	
  –	
  Manage	
  Uncertain3es	
  
• 

Rule	
  #1:	
  Result	
  =	
  DATA	
  x	
  (1	
  +	
  Uncer...
A	
  model	
  built	
  on	
  partnerships	
  	
  
&	
  collec3ve	
  governance	
  
Step	
  1	
  :	
  IncubaCng	
  	
  
201...
Users	
  	
  

Partners	
  	
  
	
  à	
  parCr	
  de	
  
300	
  
	
  new	
  users	
  	
  

Retour	
  lors	
  de	
  
l’asse...
End	
  Customers	
  	
  
–  Eu-­‐Timber	
  RegulaCon	
  :	
  Wood	
  products	
  
traceability	
  	
  
–  CSR	
  at	
  com...
Conclusion	
  
What	
  we	
  are	
  looking	
  for	
  

Early	
  adopters	
  with	
  supply	
  chain	
  issues,	
  from	
 ...
Thank	
  you	
  for	
  your	
  aIen3on	
  	
  

hWp://www.myrmex.coop/	
  
Webinar	
  sessions	
  (planned	
  once	
  a	
 ...
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Myrmex short version

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Short presentation of MYRMEx, the Factor-X new tool to track social and environmental impacts along your supply chains.

Compute easily product footprint, manage traceability, report on progresses made by your suppliers.

open source, low cost, easy to use.

Come and visit www.myrmex.coop for a short Video + sign in for one of our demo's in the coming weeks.

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Myrmex short version

  1. 1. Measuring  real  socio-­‐environmental  Impacts      along  Value-­‐chains     November  4  2013   Factor-X sprl Avenue de la Paix 3 BE 1420 Braine l’Alleud TVA BE 0890 101 395 Email : info@factorx.eu Tel : +32 2 387 17 87 Fax : +32 2 888 63 34 ©  Factor-­‐X  2013    
  2. 2. The  Problems     •  Data  overload   –  Companies  are  engaged  in  con3nuous  improvement  of  environmental  figures  for   numerous  years.  Data  accumulate,  but  data  collecCon  processes  affects  their  quality   and  coherence.   –  Yet,  socio-­‐environmental  pressure,  CSR,  labeling  and  Ethics  demands  are  sCll  growing   from  stakeholders  and  public  authori3es.   •  A  business  is  not  run  alone   –  ParCcular  emphasis  over  supply  chain  and  purchasing  footprint  improvements  :  CDP,   GRI  4,  GHG  protocol  scope  3,  UE  PEF  &  OEF,  …   –  But  the  supply  chain  of  many  corporaCons  has  become  extremely  scaWered    and  is   unmanageable  beyond  level  1  suppliers.     •  Innova3on   –  Most  of  the  marginal  efficiency  gains  on  the  producCon  side  are  behind  us.   –  An  Excel  chart  does  not  help  thinking  out  of  the  box   •  Consultants  should  deliver  added  value  instead  of  chasing  a?er  data   ©  Factor-­‐X  2013     2  
  3. 3. Too  many  tools,  each  serving  a  small  purpose   Shared  methodologies  into  a  single  Framework,   Time  saver,  both  corporate  &  products     Most  of  these  tool  Locking  customers  on  a  long   Open  source  model  &  aWracCve  pricing  +  access   term  relaConship     to  consultants  &  auditors       Too  many  people  managing  social  &   environmental  informaCon     Very  liWle  informaCon  about  product   composiCon,  traceability  beyond  level  1   Suppliers  not  very  keen  to  provide  raw   informaCon  to  customer     IdenCfy  who  does  what  easily    &  track  answers   statuses   Allow  supplier  to  push  request  upward  in  supply   chain  at  no  cost     Build  transparency  along  value  chain    for  every   actor    (dependency)   Build  Trust     Product  footprints  are  expensive,  Cme   consuming  and  based  on  generic  factors   Low  Cost  /  accessible  to  any  one,  easy  to  use  ;   real  factors     Metrics  to  define  product  performance  are  not   hamonized    (yet)       Open  to  any  methodology,  customer  defines  what   he  whats  to  track     Data  quality  issues  ,  UncertainCes  are  big     Manage  data  quality  &  uncertainCes    with  innovaCons     ©  Factor-­‐X  2013     3  
  4. 4. Added  impacts  procedure     +  improvements  over  Cme     Traceability  ,  Align  business  ans  socio-­‐ environmental    performance     ©  Factor-­‐X  2013     4  
  5. 5. General  idea  :    1  data  =  different  answers   DO  the  Job  once,  report  as  many  3mes  as  need  with  very  liIle  addi3onal  efforts   –  MYRMEX  is  a  repository  from  which  you  can  answer  to  all  internal  or  stakeholder  queries.     –  Know  immediately  who  is  reporCng  on  what  ;  focus  on  your  core  data   Supplier  1     Company   Product  A   &  B   Customer  1     Product   B&C   Customer  2     Product  A   D  &  E   Supplier  x     Customer  N     Push  the  request  to  suppliers     Collect  ac3vity  data  for  Scope  2  processes   Manage  suppliers  answers     Confirm  data  already  in  system  /     mobilise  staff  for  addi3onal  data  collec3on   See  how  many  data  you  miss  to  complete  methods       Build  temporary  answers  with  hotspots     Select/define  Method   See  progress  Reports     MYRMEX   ©  Factor-­‐X  2013     5  
  6. 6. Methods  available  /  under  development  in  MYRMEX   •  Product  traceability  &  Compliance   –  –  –  –  –  –  EU-­‐TR     FSC  /  PEFC     Product  components     Countries  of  origin     %  Organic    /  fair  trade     Reach  :  reversed    process     •  Product  footprin3ng     –  Water  ;  carbon  ;  energy     –  14  indicators  from  EU  OEF  &  PEF   –  +  ac3on  planning  &  verifica3on     •  CSR  corporate  &  Site  level     –  GRI  3.1  &  GRI  4     –  Carbon  disclosure  project     –  Global  compact     ©  Factor-­‐X  2013     6  
  7. 7. So?ware  Pricing   MYRMEX  regular  price  framework  =    each  user  pays  for  its  own  usage   Monthly  usage  fee  in  €/month   # Sites •  •  1 to 2 3 to 12 13 to 33 33+ 1 0 10 25 45 # Products 2-5 10 20 35 55 6 - 20 25 35 50 70 21- 50 50 60 75 95 50+ 80 90 105 125 Examples:            -­‐  supplier  A  reports  on  1  product  from  two  sites:  free            -­‐  supplier  B  reports  on  4  products  from  two  sites:  10  €/month            -­‐  supplier  C  reports  on  40  products  from  11  sites:  75  €/month            -­‐  nobody  pays  more  than  125  €/month   •  •  Automa3c  Verifica3on  &  Coherence  Check:  included  in  the  tool   AddiConal  demands:  Pay  as  you  Go   –  Eg.  Manual  Control  fee    =  ½  day  of  work  (on  average)   ©  Factor-­‐X  2013    
  8. 8. User  Centered  Features  –  Basic  rules     •  Rule  #1  :  Your  Data  are  NEVER  disclosed   –  DisCncCon    made  between  acCvity  data  (remaining  your  ownership  and  never  disclosed)     and  results  :  being  transmissible     •  Rule  #2  :    Everything  starts  with  a  query     –  Myrmex  =  Trusted  third  party    relay  queries  made  by  stakholders  to  your   organisaCons     –  You  decide  if  and  how  you  want  to  respond  to  each  query     •  Rule  #3  :  Your  performance  is  not  disclosed  unless  you  say  so     –  There  are  several  steps  to  proceed  through  to  send  a  result  out  of  your  company     –  Many  validaCon  layers,  few  people  having  the  authority  to  disclose  informaCon     •  Rule  #4:  If  you  don’t  save  3me  on  the  long  run,  quit  !     –  MYRMEX  intends  to  help  companies  solve  their  socio-­‐environmental  issues  by   mutualizing  these  into  a  one-­‐stop-­‐shop.  If  you  see  no  Cme  savings  aper  a  year  r  so,  give   us  feedback  and  quit.     ©  Factor-­‐X  2013     8  
  9. 9. User  Centered  Features  –  Step  by  Step  approach   •  Step  #1  :  Define  organisa3on  &  set  up  scopes     •  Step  #2  :  Review  queries     •  Step  #3  :  Define  sold  products     •  Step  #4  :  Define  suppliers  &  supplies   •  Step  #5  :    Fill  key  informa3on     •  Step  #6  :    Validate  answers  and  send  results     •  Step  #7  :  Reduce  uncertainty  by  improving  data  quality  ,  completeness     •  Step  #8  :  Reduce  uncertainty  by  valida3ng  data     3  levels  of  complexity     1.  2.  3.  Quick  &  dirty  (  10’)   Hotspots  improvement     Detailed  informaCon     ©  Factor-­‐X  2013     9  
  10. 10. Ongoing  developments  –  Manage  alloca3on   •  •  Different  methods  repec3ng  interna3onal  standards,  such  as  ISO1404x     And  user  easiness  to  use   TOTAL  consump3on   Water  Wa   Product  split  (op3onal)   Wa_P1    Wa_OP   Energy  E   ELEC  el   E_P1    E_OP   el_P1    el_OP   Processes  Pr   Pr_P1    Pr_OP   Overhead   O_P1    O_OP   Transport   T_P1    T_OP   P1  (reporCng)      Packaging     IxPa_P1   Wh    Input  1  produit  1  I1_P1    I2_P1   Other  Products   (non  listed)        Ix_Py  non  décrits     Level  1     Level  2     Per  category     Waste     Co-­‐products   Waste  Categories     Waste  P1  =  Ix_P1  +  IxPa_P1+Ci_P1   Waste  other  =  WasteTOTAL  –  W_P1       10   ©  Factor-­‐X  2013    
  11. 11. Ongoing  developments  –  Manage  Uncertain3es   •  Rule  #1:  Result  =  DATA  x  (1  +  Uncertainty  factor)   •  Rule  #2  :    The  mode  detailed  informa3on  you  give,  the  less  uncertain3es  you  get     •  Rule  #3    :  As  long  as  you  progress  towards  the  resource,  %uncertain3es  are  reduced.     •  Factors  reducing  uncertain3es     –  TheoreCcal  Data  (Hotspots)     –  3  data  quality  level  for  each  supplier   –  3  allocaCon  processes  for  each  supplier     –  Internal  data  verificaCon  by  manager     –  Data  validaCon  by  external  consultants     –  Data    Audited  third  party     –  Conform  to  Sector  guidance  documents  (materiality,      impacts,  etc)   •  %uncertainty   %Raw  material    &  resource   Finished  goods   By  adding  further  informa3on  DATA  value  can  some3mes  increase,  but  we  expect  in  85%   that  overall  impact  is  reduced.   ©  Factor-­‐X  2013     11  
  12. 12. A  model  built  on  partnerships     &  collec3ve  governance   Step  1  :  IncubaCng     2012     Factor-­‐ X   Step  2  :  Growing     Step  3  :  Spinoffing   2016-­‐17   2013-­‐2016     Factor-­‐ X   Step  4  :  Living     2017+   %sales   FAX   MYRMEX   Ideas   Myrmex   Project   Myrmex   PRODUCT   Stakeholders   Customers   Users   Factor-­‐X  autofinances  first  steps  of   development  (easier  than  startup)   The  projects  is  developed  internally     (resources  mutualisaCon)     Partnerships  proposal    (risk  &  revenue   sharing)     As  the  project  grows  in  importance   customers,  users  and  stakeholders   are  included  into  the  loop  in  order  to   define  developments    &   management  rules     The  community  of  developers  is  also  built     Once  trust  is  established,  and  since   the  project  reached  a  viable   size,  the  project  can  live   alone     CreaCon  of  a  dedicated  company   with  all  interested  people   Collegial   administ raCon     Open   Capital   (SCRL)   Ideas   transformed  into     New  projects   Own   Team  &   Mgt     STK   commite es   The  new  structure  is  created   with  no  debt,  small   capital  amounts,  is   immediately  viable  and   reassigns  a  percentage  of   its  turnover  to  FAX   (typically  10%)       ©  Factor-­‐X  2013     12  
  13. 13. Users     Partners      à  parCr  de   300    new  users     Retour  lors  de   l’assemblée   générale  des   uClisateurs     À  p.  de  1500    new  users     Skype  meeCngs     IdenCficaCon   problèmes     AmélioraCon   souhaitée     Calendrier  des   releases       Contribuer     Faire  des   suggesCons     Rendre  du   feedback   QuesConnaire   annuel  de   saCsfacCon   &     ProposiCons  de   recommandaCons       Investors     A  p.  de    3000    new  users     Réunions   trimestrielles     Grandes   orientaCons   stratégiques      From  2017     Co-­‐gesCon     Managing   partners   Releases  &   improvements   Wiki   Feedback  &   suggesCons       Conseil     OrientaNons   générales     Avis  d’experts     Assemblée   Générale   IT  developers   Conférence  de   développement     Exectuive   comiWee     Comité   scienCfique   ExperNse     Audit  IT     Audit  Méthodes   Comité   d’audit   ©  Factor-­‐X  2013    
  14. 14. End  Customers     –  Eu-­‐Timber  RegulaCon  :  Wood  products   traceability     –  CSR  at  company  level     –  Product  labels  verificaCon     –  –  –  –  Product  carbon  footprint     Suppliers  mobilisaCon     Improvements  verificaCon     Toward  low  carbon  consumpCon     –  Internal  data  collecCon  and  management     –  Site  per  site  Scope  3  carbon  footprint   –  Progressive  inclusion  of  key  suppliers       –  –  –  –  Online  Company  carbon  footprint  calculator       Online  individual  voluntary  carbon  caluclator     Improvement  declaraCon  &  verificaCon     Tips  &  tricks  to  reduce  in  funcCon  of  results   ©  Factor-­‐X  2013     14  
  15. 15. Conclusion   What  we  are  looking  for   Early  adopters  with  supply  chain  issues,  from  main  industrial  domains:   •  Agrifood   •  Chemical   •  Automobile  /  transport   •  Manufacturing   •  ConstrucCon   •  Medical  &  Health   •  Electronics   •  TexCle   •  Furniture   •  Tourism   What  do  you  gain  by  being  one?   Mobiliza3on  of  your  supply  chain  -­‐       BeWer  understanding  of  the  Socio-­‐environmental  impact  along  your  value  chain   Clear  PosiConing  in  improving  sustainability  pracCces  in  purchasing     Return  on  investment   Business  Partners  in  the  consulCng  and  Audit  industry    :   •   Develop  methodologies     Tool  developers     •   Test  the  tool     •   Integrate  your  customers  supply  chains     •   Give  feedback  &  parCcipate  to  governance     •   Get  addiConal  turnover       • Driven  by  open  source  models     Scien3fic  comiIee  members     ApplicaCons  welcome   frederic@factorx.eu   ©  Factor-­‐X  2013     15  
  16. 16. Thank  you  for  your  aIen3on     hWp://www.myrmex.coop/   Webinar  sessions  (planned  once  a  week)   FACTOR-­‐X     Frédéric  Chomé     Frederic.chome@factorx.eu   +32  474  701  832     hVp://www.factorx.eu     ©  Factor-­‐X  2013     16  

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