Slides from Brian Werner, Associate Director, Trucost, part of S&P Dow Jones Indices presented at the Sustainable Purchasing Leadership Council's 2018 Summit in Minneapolis, MN.

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2. Using Data and Spend Analysis to Build
a Strategic Purchasing Program
Presentation for SPLC Summit 2018
Minneapolis, MN
Brian Werner
Associate Director, Corporate Business
May 15, 2018

3. S&P: Global Reach and Local Presence
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4. About Trucost
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5. Trucost – ESG solutions
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• 17 years Trucost has been researching,
standardizing and validating the world’s
most comprehensive natural capital data
• 93% coverage of global equity markets by
market cap.
• 10,000 companies and their supply chains
researched annually by Trucost analysts
• $20 T in investment funds analyzed
Greenhouse
Gases
Water
Waste
Air Pollutants
Land and Water
Pollutants
Land use
change
500+ environmental metrics in six major categories
Investor
Portfolios & Bank
Loan books
Corporate
supply chains
Commodities Net benefit of
new products
or technologies
New Business
Models
ESG analytics and data for footprinting, target setting, shadow pricing, scenario
analysis, positive impact assessment
Trucost, part of S&P Dow Jones Indices, assesses risks relating to climate change, natural resource
constraints, and broader environmental, social, and governance factors.

6. Why is spend analysis important?
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Source: State of Green Business Report (2018)

7. Why is spend analysis important?
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Source: Sustainable Purchasing Leadership Council, Principles

8. Why is spend analysis important?
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Source: Sustainable Purchasing Leadership Council, Principles

9. Primer on spend analysis
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Quantify
environmental
drivers through
data collection
and modelling
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Phase 1: EEI-O modelling
1. Obtain details on Tier 1 supply chain spend, including information on:
• Supplier name
• Address details
• Expenditure (USD)
• Production volumes
• Product category (Apparel / Accessories / Footwear)
2. Suppliers and spend mapped to specific business activities
3. Trucost EEI-O model used to derive quantities of environmental drivers
for each supplier from cradle-to-gate
4. Supply chain data reported alongside organization’s financial data to
provide contextualization

10. Primer on spend analysis, continued
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Engage with
key suppliers
for most robust
quantification
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Phase 2: Supplier engagement
1. Identification of engagement sample: for example, 60 suppliers
whose operations and own supply chains account for 90% of
environmental indicator contribution
2. Data collected on suppliers from existing Tier 1 auditing (50
suppliers) and through engagement using Trucost’s online portal (10
suppliers)
3. Key data inputs included:
• Fuel use (operations and vehicles)
• Electricity consumption
• Business travel
• Water consumption
• Etc.
4. Provision of information on geographical sourcing of raw materials
within each product type and geographical location of Tier 2 and 3
suppliers through existing audits

11. Example: City of London (UK)
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Source: Capital Ambition (2011)

12. Example: City of London (UK)
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Source: Capital Ambition (2011)
Top 10 spend categories account for 90% of London’s carbon footprint
Spend category analysis

13. Example: City of London (UK)
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Source: Capital Ambition (2011)
Top 10 suppliers account for 32% of London’s carbon footprint
Supplier level analysis

14. Example: City of London (UK)
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If the Top 10 sectors achieved the average efficiency benchmark,
London could reduce its supply chain carbon footprint by 23%
Over 500,000 tCO2e
Identifying opportunities
Source: Capital Ambition (2011)

15. Thank you
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Brian Werner
Associate Director of Corporate Business| Trucost
55 Water Street
New York, New York
T +1.215.970.3083
Brian.Werner@spglobal.com

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