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Environmental Commitment

Green Supply Chain
Management:
The model in detail
Gorane Ibarra
Derio, 15th November 2013
Stages in Green Supply Chain
Managements Model:
ENVIRONMENTAL
MANAGEMENT OF THE
ACTIVITY

PRODUCT SUPPLY CHAIN
(BUSINESS)

information of
the product

Eco-design
of the
components

Environmental
information

Basic
green
purchasing

Environmental

Legal
requirements and
environmental
procedures

Internal
Systematics
of Eco-design
management

External
systems for
environmental
recognition

Advanced
green
purchasing

Excellent
green
purchasing

Environmental
Management

systems

ENVIRONMENTAL
MANAGEMENT OF THE
ACTIVITY

PROCUREM ENT OF CORPORATE
SUPPLIES AND SERVICES
ENVIRONMENTAL
MANAGEMENT OF
THE ACTIVITY

PRODUCT SUPPLY CHAIN
(BUSINESS)

information of
the product

Eco-design
of the
components

Environmental
information

Basic
green
purchasing

Environmental

Legal
requirements and
environmental
procedures

Internal
Systematics
of Eco-design
management

External
systems for
environmental
recognition

Environmental
Management

systems

ENVIRONMENTAL
MANAGEMENT OF
THE ACTIVITY

Advanced
green
purchasing

PROCUREMENT OF CORPORATE
SUPPLIES AND SERVICES

Excellent
green
purchasing
Environmental Management of the Activity:
à AIM: To achieve a solid

working base
à AGENTS INVOLVED:

Suppliers
à The internal management of

the activity is dealt with
à Service quality and

competitiveness
Environmental Management of the Activity:
Legal requirements and environmental
proceedings
à To ensure compliance with the legal
requirements and that the administrative
procedures are up-to-date.
à Constantly evolving environmental
legislation: current and future legislation.
à Basic situation to continue advancing in environmental
protection and responsibility.
Environmental Management of the Activity:
Environmental management systems
àTo implement an environmental
management system (internalise and
systematise)
àTo ensure ongoing improvement and
integration with the general
management activity of the organisation
This gives the organisation:
•Legal

compliance
•Monitoring of the negative impacts on the environment
•Improved environmental performance
Environmental Management of the Activity:
Support for small and micro-enterprises of the
supply chain in environmental legislation
In line with the family spirit that Vicinay Cadenas wants to maintain,
many of its supply chain companies are small and micro-enterprises,
sometimes with scarce internal resources to be able to dedicate them
to the sustainable management of the company.
With the aim of supporting and transferring to these companies basic
concepts of environmental legislation and procedures as well as the
actual internal environmental management that they could
implement in their companies, it has held a first working meeting with
its main suppliers. The companies that attended it were: Mecanizado
Cigor, Mecanizados San Miguel, Talleres Sopuerta, EISSEN, EIT Getxo,
EBI, RAZYA.
At this meeting, carried out with the presence of Ihobe, all the support tools available in the "Ecoefficiency Programme for Basque Companies 2014" were made available to the participating companies.
Environmental Management of the Activity:
Support for small and micro-enterprises of the
supply chain in environmental legislation
With the aim of guaranteeing the application of environmental policies throughout its
supply chain, Gamesa expects an active commitment in environmental matters from its
suppliers. This includes he establishment of and adherence to an environmental
management system according to the ISO 14001 standard or equivalent, including:
The participation of the supplier in the guarantee to avoid the use of
limited-use substances in new products.
- Communication to subcontracted companies of environmental
awareness Plans in the management of windfarms.
- Environmental audits.
-

Information on GHG emissions and actions to advance in the calculation
of the scope 3 carbon footprint according to ISO 14064 is currently being
extended to the supply chain.
PRODUCT SUPPLY CHAIN
(BUSINESS)

ENVIRONMENTAL
MANAGEMENT OF THE
ACTIVITY

Environmental

information of
the product

Legal
requirements and
environmental
procedures

Eco-design
of the
components

Internal
Systematics
of Eco-design
management

Environmental
Management

systems
Environmental
information

ENVIRONMENTAL
MANAGEMENT OF THE
ACTIVITY

Basic
green
purchasing

Advanced
green
purchasing

PROCUREMENT OF CORPORATE
SUPPLIES AND SERVICES

Excellent
green
purchasing

External
systems for
environmental

recognition
Product Supply Chain:
à AIM: To improve the supplies or
services directly related to the business
of the "sector-driver" company
à AGENTS INVOLVED: The entire supply
chain (LIFE CYCLE vision) and
à Increased competitiveness
à Change of philosophy: Change in the
way of working or even of the product
itself (gradual work proposal)
Product Supply Chain:
Environmental product information.
à Positioning in markets with an environmentfriendly product: transparency, quantifying and
with quality data, properly processed and
contrasted.
à The aim is that the environmental information
or data provided is reliable, of quality and with
traceability.
à With direct work with suppliers: More reliable and quality data
à Supplier participation essential
Product Supply Chain:
Component eco-design
à The aim is to improve the product
environmentally, in all the stages of its life
cycle.
à ACV tool to identify the Environmental taxes.
à With agents from all the supply chain the
possibilities for improvement are significantly
enhanced.
à Environmental improvement achieved = aggregation of the individual
environmental improvements achieved
à The implications of each action with respect to the entirety of the subject
product's life cycle are visualised
Product Supply Chain:
Eco-design management internal systematics
à The aim is to internalise the methodology
of eco-design so that it is not a one-off
action.
à Anchor eco-design in the product design
and development process through an Ecodesign Management System
à Commitment to eco-design of both the
supplier and the sector-driving company
becomes established.
à Reference: UNE-EN ISO 14006
International standard
Product Supply Chain:
External systems for environmental recognition
à It is NOT about working on environmental
improvement but on COMMUNICATION and
the CREATION OF VALUE
à The best environmental recognition system is
studied:
• Recognition of the own company (internal
management)
• Recognition of the product
à How to optimise these systems working with
the supply chain
Product Supply Chain:
Ecodesign of an electrical substation
and all its components in Ordizia
This ambitious project, in addition to an internal training
phase for Iberdrola staff, included two other intermediary
phases of hands-on work with suppliers, focusing on the
elements which make up the substation. Incoesa,
Adhorna, ABB, Arteche, Ingeteam Power Technology and
ZIV Aplicaciones y Tecnología joined Ormazabal in
participating in these supplier-engagement activities.

The work of these suppliers consisted of simulating the components individually in different
Life-Cycle Analysis software tools to identify their main environmental impacts and then
proposing ways to improve each one of these components. Iberdrola collected all the
information to achieve a global vision of the substation before and after the proposals.
Product Supply Chain:
Product Supply Chain:
Eroski promotes the consumption of sustainable
products through environmental certificates
Eroski reinforces its commitment to sustainable consumption by including
environmental guarantees in its products.
Such is the case of the FSC sustainable wood products, having received in 2010
the FSC International Partner Award for its commitment in the sale and
popularisation of FSC products, which guarantee a responsible use of forest
resources, MSC sustainable fishing products or organic cotton.
Eroski joined the WWF Sustainable Fishing Initiative to receive the MSC
certificate in 2010, seeking to ensure that its sources of fish and shellfish were
sustainable and environment-friendly. It has been the first Spanish distribution
company to have products with the MSC eco-label on its fishmonger counter in
the fresh foods section.
Eroski currently has ten seafood references with the MSC eco-label, including
species such as Skrei cod from northern Norway, South African hake and Alaska
pollock.
ENVIRONMENTAL
MANAGEMENT OF THE
ACTIVITY

PRODUCT SUPPLY CHAIN
(BUSINESS)

Environmental

information of
the product

Legal
requirements and
environmental
procedures

Eco-design
of the
components

Internal
Systematics
of Eco-design
management

External
systems for
environmental
recognition

Environmental
Management

systems

Environmental
information
ENVIRONMENTAL
MANAGEMENT OF THE
ACTIVITY

Basic
green
purchasing

Advanced
green
purchasing

Excellent
green
purchasing

PROCUREMENT OF CORPORATE
SUPPLIES AND SERVICES
Supplies and services procurement:
à AIM: To procure the products with the best
environmental features.
à To establish a relationship (bilateral
communication) with suppliers to achieve an
improvement of the quality–environmental
quality–price ratio
à AGENTS INVOLVED: Suppliers, manufacturers and
distributors
à In principle, it does not affect the business
product of the organisation
à It enriches other management or recognition
systems of the organisation
Supplies and services procurement:
Environmental information about supplies and
services
à Transfer to the supplier of this line of
action
à This line does not only approach criteria
at the moment of purchase: prior
reflection and good subsequent
operational practices
à Offer the supplier the opportunity to
participate in the process and to
contribute at all stages, even submitting
their own offers
Supplies and services procurement:
Criteria for green private purchasing
à Purchasing or contracting increasingly
environment-friendly products or services.

Level: basic

à Strategy to advance in the amount of
requirements.
à Study and measure both the economic and
environmental impact that this action can
bring.
à Deploy Good practices among the workers.

Level: Advanced

Level: excellence
Supplies and services procurement:
Green purchases in the Corporate
supplies and services of Euskaltel
Since the beginning of its activity, Euskaltel Has Implemented an Environmental
Management system for its activity, to which end it has worked with its suppliers in
order to communicate its policies regarding environmental and green purchasing
aspects.
Thus, it has worked on the criteria applicable to goods and services purchased in a
number of fields with its suppliers:
-Identification

of legal requirements and environmental procedures
-Management Systems of the Suppliers must directly related to Euskaltel's service
-Products and services not so related to the services provided, though highly visible
regarding its public image
Euskaltel established a system to communicate the requirements along the supply
chain by using information sheets for each supplier that list the requirements to be
taken into account. These sheets are given to the suppliers, requesting them to
commit themselves to comply with the criteria set out.
Green supply chain

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Green supply chain

  • 1. Environmental Commitment Green Supply Chain Management: The model in detail Gorane Ibarra Derio, 15th November 2013
  • 2. Stages in Green Supply Chain Managements Model: ENVIRONMENTAL MANAGEMENT OF THE ACTIVITY PRODUCT SUPPLY CHAIN (BUSINESS) information of the product Eco-design of the components Environmental information Basic green purchasing Environmental Legal requirements and environmental procedures Internal Systematics of Eco-design management External systems for environmental recognition Advanced green purchasing Excellent green purchasing Environmental Management systems ENVIRONMENTAL MANAGEMENT OF THE ACTIVITY PROCUREM ENT OF CORPORATE SUPPLIES AND SERVICES
  • 3. ENVIRONMENTAL MANAGEMENT OF THE ACTIVITY PRODUCT SUPPLY CHAIN (BUSINESS) information of the product Eco-design of the components Environmental information Basic green purchasing Environmental Legal requirements and environmental procedures Internal Systematics of Eco-design management External systems for environmental recognition Environmental Management systems ENVIRONMENTAL MANAGEMENT OF THE ACTIVITY Advanced green purchasing PROCUREMENT OF CORPORATE SUPPLIES AND SERVICES Excellent green purchasing
  • 4. Environmental Management of the Activity: à AIM: To achieve a solid working base à AGENTS INVOLVED: Suppliers à The internal management of the activity is dealt with à Service quality and competitiveness
  • 5. Environmental Management of the Activity: Legal requirements and environmental proceedings à To ensure compliance with the legal requirements and that the administrative procedures are up-to-date. à Constantly evolving environmental legislation: current and future legislation. à Basic situation to continue advancing in environmental protection and responsibility.
  • 6. Environmental Management of the Activity: Environmental management systems àTo implement an environmental management system (internalise and systematise) àTo ensure ongoing improvement and integration with the general management activity of the organisation This gives the organisation: •Legal compliance •Monitoring of the negative impacts on the environment •Improved environmental performance
  • 7. Environmental Management of the Activity: Support for small and micro-enterprises of the supply chain in environmental legislation In line with the family spirit that Vicinay Cadenas wants to maintain, many of its supply chain companies are small and micro-enterprises, sometimes with scarce internal resources to be able to dedicate them to the sustainable management of the company. With the aim of supporting and transferring to these companies basic concepts of environmental legislation and procedures as well as the actual internal environmental management that they could implement in their companies, it has held a first working meeting with its main suppliers. The companies that attended it were: Mecanizado Cigor, Mecanizados San Miguel, Talleres Sopuerta, EISSEN, EIT Getxo, EBI, RAZYA. At this meeting, carried out with the presence of Ihobe, all the support tools available in the "Ecoefficiency Programme for Basque Companies 2014" were made available to the participating companies.
  • 8. Environmental Management of the Activity: Support for small and micro-enterprises of the supply chain in environmental legislation With the aim of guaranteeing the application of environmental policies throughout its supply chain, Gamesa expects an active commitment in environmental matters from its suppliers. This includes he establishment of and adherence to an environmental management system according to the ISO 14001 standard or equivalent, including: The participation of the supplier in the guarantee to avoid the use of limited-use substances in new products. - Communication to subcontracted companies of environmental awareness Plans in the management of windfarms. - Environmental audits. - Information on GHG emissions and actions to advance in the calculation of the scope 3 carbon footprint according to ISO 14064 is currently being extended to the supply chain.
  • 9. PRODUCT SUPPLY CHAIN (BUSINESS) ENVIRONMENTAL MANAGEMENT OF THE ACTIVITY Environmental information of the product Legal requirements and environmental procedures Eco-design of the components Internal Systematics of Eco-design management Environmental Management systems Environmental information ENVIRONMENTAL MANAGEMENT OF THE ACTIVITY Basic green purchasing Advanced green purchasing PROCUREMENT OF CORPORATE SUPPLIES AND SERVICES Excellent green purchasing External systems for environmental recognition
  • 10. Product Supply Chain: à AIM: To improve the supplies or services directly related to the business of the "sector-driver" company à AGENTS INVOLVED: The entire supply chain (LIFE CYCLE vision) and à Increased competitiveness à Change of philosophy: Change in the way of working or even of the product itself (gradual work proposal)
  • 11. Product Supply Chain: Environmental product information. à Positioning in markets with an environmentfriendly product: transparency, quantifying and with quality data, properly processed and contrasted. à The aim is that the environmental information or data provided is reliable, of quality and with traceability. à With direct work with suppliers: More reliable and quality data à Supplier participation essential
  • 12. Product Supply Chain: Component eco-design à The aim is to improve the product environmentally, in all the stages of its life cycle. à ACV tool to identify the Environmental taxes. à With agents from all the supply chain the possibilities for improvement are significantly enhanced. à Environmental improvement achieved = aggregation of the individual environmental improvements achieved à The implications of each action with respect to the entirety of the subject product's life cycle are visualised
  • 13. Product Supply Chain: Eco-design management internal systematics à The aim is to internalise the methodology of eco-design so that it is not a one-off action. à Anchor eco-design in the product design and development process through an Ecodesign Management System à Commitment to eco-design of both the supplier and the sector-driving company becomes established. à Reference: UNE-EN ISO 14006 International standard
  • 14. Product Supply Chain: External systems for environmental recognition à It is NOT about working on environmental improvement but on COMMUNICATION and the CREATION OF VALUE à The best environmental recognition system is studied: • Recognition of the own company (internal management) • Recognition of the product à How to optimise these systems working with the supply chain
  • 15. Product Supply Chain: Ecodesign of an electrical substation and all its components in Ordizia This ambitious project, in addition to an internal training phase for Iberdrola staff, included two other intermediary phases of hands-on work with suppliers, focusing on the elements which make up the substation. Incoesa, Adhorna, ABB, Arteche, Ingeteam Power Technology and ZIV Aplicaciones y Tecnología joined Ormazabal in participating in these supplier-engagement activities. The work of these suppliers consisted of simulating the components individually in different Life-Cycle Analysis software tools to identify their main environmental impacts and then proposing ways to improve each one of these components. Iberdrola collected all the information to achieve a global vision of the substation before and after the proposals.
  • 17. Product Supply Chain: Eroski promotes the consumption of sustainable products through environmental certificates Eroski reinforces its commitment to sustainable consumption by including environmental guarantees in its products. Such is the case of the FSC sustainable wood products, having received in 2010 the FSC International Partner Award for its commitment in the sale and popularisation of FSC products, which guarantee a responsible use of forest resources, MSC sustainable fishing products or organic cotton. Eroski joined the WWF Sustainable Fishing Initiative to receive the MSC certificate in 2010, seeking to ensure that its sources of fish and shellfish were sustainable and environment-friendly. It has been the first Spanish distribution company to have products with the MSC eco-label on its fishmonger counter in the fresh foods section. Eroski currently has ten seafood references with the MSC eco-label, including species such as Skrei cod from northern Norway, South African hake and Alaska pollock.
  • 18. ENVIRONMENTAL MANAGEMENT OF THE ACTIVITY PRODUCT SUPPLY CHAIN (BUSINESS) Environmental information of the product Legal requirements and environmental procedures Eco-design of the components Internal Systematics of Eco-design management External systems for environmental recognition Environmental Management systems Environmental information ENVIRONMENTAL MANAGEMENT OF THE ACTIVITY Basic green purchasing Advanced green purchasing Excellent green purchasing PROCUREMENT OF CORPORATE SUPPLIES AND SERVICES
  • 19. Supplies and services procurement: à AIM: To procure the products with the best environmental features. à To establish a relationship (bilateral communication) with suppliers to achieve an improvement of the quality–environmental quality–price ratio à AGENTS INVOLVED: Suppliers, manufacturers and distributors à In principle, it does not affect the business product of the organisation à It enriches other management or recognition systems of the organisation
  • 20. Supplies and services procurement: Environmental information about supplies and services à Transfer to the supplier of this line of action à This line does not only approach criteria at the moment of purchase: prior reflection and good subsequent operational practices à Offer the supplier the opportunity to participate in the process and to contribute at all stages, even submitting their own offers
  • 21. Supplies and services procurement: Criteria for green private purchasing à Purchasing or contracting increasingly environment-friendly products or services. Level: basic à Strategy to advance in the amount of requirements. à Study and measure both the economic and environmental impact that this action can bring. à Deploy Good practices among the workers. Level: Advanced Level: excellence
  • 22. Supplies and services procurement: Green purchases in the Corporate supplies and services of Euskaltel Since the beginning of its activity, Euskaltel Has Implemented an Environmental Management system for its activity, to which end it has worked with its suppliers in order to communicate its policies regarding environmental and green purchasing aspects. Thus, it has worked on the criteria applicable to goods and services purchased in a number of fields with its suppliers: -Identification of legal requirements and environmental procedures -Management Systems of the Suppliers must directly related to Euskaltel's service -Products and services not so related to the services provided, though highly visible regarding its public image Euskaltel established a system to communicate the requirements along the supply chain by using information sheets for each supplier that list the requirements to be taken into account. These sheets are given to the suppliers, requesting them to commit themselves to comply with the criteria set out.