North America 300 Carbon Ranking 2011: Top 20 Countries

An environmental tracking report from the Environmental Investment Organisation, provides rankings of the carbon emissions of companies around the world. The report ranked the world’s largest 1,300 companies according to their greenhouse gas emissions and transparency.

The purpose of the ET Carbon Ranking is to provide information on a company's greenhouse gas emissions intensity as well as its level of disclosure and verification. The aim of the ET Carbon Ranking is to encourage increasingly higher levels of disclosure and verification while incentivising corporate greenhouse gas (GHG) emissions reduction on a global scale.

From 2011 the ranking will be based on a greenhouse gas emissions intensity metric relative to a company’s size, with companies ranked regardless of industry or sector.

Here is a list of the top 20 firms from North America and the countries in which they are based:

1 BAXTER INTL US
2 UPS US
3 PRAXAIR US
4 BANK OF AMERICA US
5 E I DU PONT DE NEMOURS US
6 HESS US
7 PEPSICO US
8 NEWS CORP US
9 DOW CHEMICAL US
10 AIR PRDS & CHEMS US
11 BCE CA
12 TELUS CA
13 BRISTOL MYERS SQUIBB US
14 TORONTO-DOMINION BANK CA
15 DELL US
16 ABBOTT LABORATORIES US
17 FEMSA MX
18 COCA COLA US
19 CHEVRON US
20 NOBLE ENERGY US

For the full set of Rankings and Reports, as well as further information on the Environmental Tracking initiative visit www.eio.org.uk

© 2011, Richard Matthews. All rights reserved.

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Global 800 Carbon Ranking 2011: Top 20 Countries

A new environmental tracking (ET) report from the Environmental Investment Organisation (EIO), provides detailed rankings of the carbon emissions of companies around the world. The report ranked the world’s largest 1,300 companies according to their greenhouse gas emissions and transparency.

The purpose of the ET Carbon Ranking is to provide information on a company's greenhouse gas emissions intensity as well as its level of disclosure and verification. The aim of the ET Carbon Ranking is to encourage increasingly higher levels of disclosure and verification while incentivising corporate greenhouse gas (GHG) emissions reduction on a global scale.

From 2011 the ranking will be based on a greenhouse gas emissions intensity metric relative to a company’s size, with companies ranked regardless of industry or sector.

Here is a list of the top 20 firms from around the world and the countries in which they are based:

1 BASF DE
2 ANGLO AMERICAN GB
3 GOLD FIELDS ZA
4 ALCATEL-LUCENT FR
5 SANTANDER BR BR
6 BAXTER INTL US
7 VALE BR
8 WESTPAC BANKING AU
9 COMMERZBANK DE
10 NATIONAL AUS BANK AU
11 UPS US
12 XSTRATA GB
13 PRAXAIR US
14 TELSTRA AU
15 BANK OF AMERICA US
16 BRITISH LAND GB
17 NOKIA FI
18 RECKITT BENCKISER GROUP GB
19 CENTRICA GB
20 WESFARMERS AU

For the full set of Rankings and Reports, as well as further information on the Environmental Tracking initiative visit www.eio.org.uk

© 2011, Richard Matthews. All rights reserved.

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Global Carbon Rankings 2011 from the EIO

A new environmental tracking (ET) report provides detailed rankings of the carbon emissions of companies around the world. This report is a must read for Sustainability Professional, Investors, NGOs and anyone concerned about climate change.

The report was released on November 1, it ranked the world’s largest 1,300 companies according to their levels of transparency and greenhouse gas emissions. The report was released by the the Environmental Investment Organisation (EIO), a UK based NGO supported by a global research network.

These types of reports are crucial because they represent the first step in the wider ET initiative, which will see the Rankings translated into a market mechanism designed to apply pressure to company share price in line with emissions and levels of disclosure.

The purpose of the ET Carbon Ranking is to provide information on a company's greenhouse gas emissions intensity as well as its level of disclosure and verification. The aim of the ET Carbon Ranking is to encourage increasingly higher levels of disclosure and verification while incentivising corporate greenhouse gas (GHG) emissions reduction on a global scale.

From 2011 the ranking will be based on a greenhouse gas emissions intensity metric relative to a company’s size, with companies ranked regardless of industry or sector.

Several key findings from the Global 800 Report:

- German based BASF comes top, disclosing all 15 Scope 3 Categories, according to the new GHG Protocol Scope 3 Reporting Standard.

- 55% of companies in the ET Global 800 report incomplete data or no data at all, indicating the scale of the GHG reporting challenge.

- The Netherlands is the only country with 100% disclosure within the ET Global 800, followed by Italy, with 88%, and Germany, with 84%.

- In total, only 21% of the ET Global 800 report public, complete and independently verified data, as defined by the ET Global Carbon Ranking Methodology.

- Europe leads the world on all disclosure metrics: 53.6% of companies report complete and independently verified data. This compares to 8.8% for North America, the lowest of any region.

- Europe is also the region with the lowest GHG intensity with an average of 1861.3 tCO2e/$M turnover per company across all three Scopes.

- This compares with a figure for the BRICS countries which is almost double, at average of 3122.97 tCO2e/$M turnover per company. However, this comparison must be viewed in the context of significant outsourcing by multinational companies to emerging economies.

- 208, or 26%, of companies within the ET Global 800, report one or more Scope 3 categories. However, only 17, or 2%, report 5 or more Scope 3 categories.

- Of this group, only one company, BASF, reports all 15 Scope 3 categories, according to the new GHG Protocol Scope 3 Reporting Standard.

For the full set of Rankings and Reports, as well as further information on the Environmental Tracking initiative visit www.eio.org.uk

© 2011, Richard Matthews. All rights reserved.

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Canada's Greenest Companies

Here is a list of Canada's greenest companies according to Newsweek's Global 2011 Green Rankings, which were compiled in cooperation with Trucost and Sustainalytics, two leading environmental-research firms. Their assessments of the environmental footprints of the world's largest companies included greenhouse-gas emissions, water use, reporting, transparency, environmental policies programs and initiatives.

Of the big Canadian companies 19 of the 500 spots were Canadian. Here is the list of the top 19 Canadian firms and their global ranking.

1. Bell Canada Enterprises 12
2. TELUS Canada 84
3. Power Financial Canada 120
4. TD Bank Canada 131
5. Rogers Communications 157
6. Thomson Reuters 194
7. Great-West Lifeco 195
8. Canadian National Railway 203
9. RBC Canada 209
10. BMO Canada 224
11. CIBC Canada 225
12. Barrick Canada 305
13. Suncor Canada 306
14. Loblaw Canada 314
15. ScotiaBank 336
16. Research in Motion 357
17. Magna 371
18. Manulife 390
19. Power Corp. of Canada 465

© 2011, Richard Matthews. All rights reserved.

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America's Greenest Companies

Here is a list of America's greenest companies according to Newsweek's Global 2011 Green Rankings, which were compiled in cooperation with Trucost and Sustainalytics, two leading environmental-research firms. Their assessments of the environmental footprints of the world's largest companies included greenhouse-gas emissions, water use, reporting, transparency, environmental policies programs and initiatives. The Newsweek rankings suggest that the US is trailing other parts of the world in the sustainability arena.

IBM ranks first (No. 2 on the global list), IBM has been measuring, managing, and voluntarily reporting on its environmental impact for more than 20 years. It says it has conserved 5.4 million kilowatt-hours of elec-tricity over that time, cutting its CO2 emissions and saving the company more than $400 million in the process.

Energy efficiency and conservation is a “business no-brainer,” says Wayne Balta, a vice presi-dent who oversees sustainability at IBM. But the company has extended its eco-savvy far beyond its own operations—for instance, providing software that helps customers identify energy-saving efficien-cies at an office campus.

HP is second (they are ranked No. 15 globally). Office Depot comes in at number 8, they are the single retailer to make it into the US top 10. The company has saved 3,000 tons of wood and up to $1.5 million a year simply by delivering goods in paper bags rather than cardboard boxes. But, as with IBM, perhaps more significant are the tools Office Depot provides to its largest customers, including cities, states, and large corporations. It shows customers the environmental and financial tradeoffs of their purchasing decisions on everything from copy paper to cleaning supplies.

Here is the list of the top 25 US firms including the sector in which they operate.

1 IBM - Information Technology & Services
2 Hewlett-Packard - Technology Equipment
3 Sprint Nextel - Telecommunications
4 Baxter - Healthcare
5 Dell - Technology Equipment
6 Johnson & Johnson - Healthcare
7 Accenture - Information Technology & Services
8 Office Depot - Retailers
9 CA Technologies - Information Technology & Services
10 Nvidia - Technology Equipment
11 Agilent Technologies - Healthcare
12 Hartford Financial Services Grp. - Financials
13 EMC - Technology Equipment
14 Adobe Systems - Information Technology & Services
15 Intel - Technology Equipment
16 Cognizant Technology - Information Technology & Services
17 Staples - Retailers
18 Motorola Solutions - Technology Equipment
19 Best Buy - Retailers
20 Allergan - Healthcare
21 McGraw-Hill - Media & Publishing
22 Ford Motor - Vehicles & Components
23 Walt Disney - Media & Publishing
24 Citigroup - Financials
25 American Express - Financials

© 2011, Richard Matthews. All rights reserved.

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The World's Greenest Companies

Despite a weak economy, government inaction and the failure of a comprehensive climate change agreement many of the globe’s big companies continue to move forward with sustainable initiatives.  “Big companies have decided that this is a long-term play,” says Thomas Lyon, a professor at the University of Michigan’s Ross School of Business.

Corporate executives see value in efficiency and minimizing waste. Cutting greenhouse gases can also improve the bottom line. Companies see the wisdom of managing resources and some are even preparing to benefit from resource scarcity.

Here is a list of the world's greenest companies according to Newsweek's Global 2011 Green Rankings, which were compiled in cooperation with Trucost and Sustainalytics, two leading environmental-research firms. Their assessments of the environmental footprints of the world's largest companies included greenhouse-gas emissions, water use, reporting, transparency, environmental policies programs and initiatives.

Financial companies dominate the list because they have a relatively small footprint to begin with. IBM is second on the global list followed by a number of European companies. Due largely to Europe’s tighter regulatory environment, European companies dominate when it comes to transparent disclosure. In addition to the US and Europe, leading firms come from Australia, Brazil, India, Canada, Japan, and Mexico.

“We’ve been presented with a false choice: either great economic performance or great environmental performance,” says GE’s Mark Vachon. “But through innovation, we can solve both challenges.”

Here is the list of the top 25 greenest firms in the world including the country of origin and the sector in which they operate.

1 Munich Re - Germany - Financials
2 IBM - United States - Information Technology & Services
3 National Australia Bank - Australia - Financials
4 Bradesco - Brazil - Financials
5 ANZ Banking Group - Australia - Financials
6 BT Group - United Kingdom - Telecommunications
7 Tata Consultancy Services - India - Information Technology & Services
8 Infosys - India - Information Technology & Services
9 Philips - Netherlands - Capital Goods
10 Swisscom - Switzerland - Telecommunications
11 Societe Generale - France - Financials
12 Bell Canada Enterprises - Canada - Telecommunications
13 Fujitsu - Japan - Technology Equipment
14 Wal-Mart de Mexico - Mexico - Retailers
15 Hewlett-Packard - United States - Technology Equipment
16 Sprint Nextel - United States - Telecommunications
17 Santander - Brazil - Financials
18 Westpac Banking- Australia - Financials
19 RBS - United Kingdom - Financials
20 SAP - Germany - Information Technology & Services
21 Nokia - Finland - Technology Equipment
22 Samsung - Korea, Republic Of - Technology Equipment
23 Telecom Italia - Italy - Telecommunications
24 Baxter - United States - Healthcare
25 Dell - United States - Technology Equipment

© 2011, Richard Matthews. All rights reserved.

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Video: Future Supply Chain 2016

The Future of Supply Chain 2016 report covers the challenges and innovations in supply chains. The report addresses the importance of collaboration, as well as government and regulatory issues. Information is making supply chains more efficient. The world has changed and we need to change our supply chain to adapt to it. We have a duty of care to do as little damage as we can.

© 2011, Richard Matthews. All rights reserved.

The Rise of Sustainable Supply Chains

After the recession of 2008 companies got leaner and part of this new way of doing business involves looking at inefficiencies throughout the value chain as a way to leverage cost and enhance savings. Lean efforts have been demonstrated to yield substantial environmental benefits (pollution prevention, waste reduction and reuse opportunities) as well as leverage compliance issues.

Although sustainable supply chains have been steadily growing, in 2010 we saw an explosion of activity. The growth of greener supply chains in 2010 included a much greater focus on monitoring, measurement and verification from a host of companies including Wal-Mart, IBM, Proctor and Gamble, Kaiser Permanente, Puma, Ford, Intel, Pepsi, Kimberly-Clark, Unilever, Johnson & Johnson, Dell, AT&T, P&G, and Herman Miller.

In addition to private enterprise, government agencies in the US (General Services Administration) and abroad (DEFRA in Britain) have set green standards and guidelines for federal procurement.

Major value chain concerns such as materials water and waste management, are part of a growing sustainability trend where companies are increasingly concerned with their suppliers' sustainability efforts.

Corporate social responsibility issues including addressing concerns for human rights, fair labor and sustainable development got a lot of attention from big companies like Nestle, Corporate Express, Danisco, Starbucks, Unilever and the apparel industry.

Companies are embracing transparency and collaboration in the supply chain in an effort to be truly sustainable. They are getting on board with supply chain sustainability because they can't afford to be viewed as laggards and because they recognize that there are very real benefits to being first movers with green technological innovation.

© 2011, Richard Matthews. All rights reserved.

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Environmental Regulations Shaping Today's Sustainable Supply Chains

On Wednesday, August 31, 2011, Environmental Leader aired a webinar that included an update on RoHS2, REACH, Conflict Minerals, and other key issues driving sustainable sourcing and supply chain initiatives.

The summer of 2011 brought a wave of regulations. The REACH Committee composed of member state representatives kicked off June with a draft Commission Regulation to amend Annex XVII of REACH. In July, an amended RoHS Directive (or “RoHS2”) followed with its long-anticipated overhaul and new restrictions for electrical and electronic equipment (“EEE”). And July 21, 2011 marked the first anniversary of Dodd-Frank legislation and its controversial Conflict Minerals regulations.

RoHS/RoHS2, REACH, and conflict minerals are just a few of the key issues intensifying demands for product compliance and material disclosures. Meanwhile, conflict minerals joins a rising number of human rights concerns that transcend product lifecycles, sourcing and the supply chain. Passing the mid-point of 2011, The webinar explored what these and other issues such as take-back and waste laws have in store for producers, importers, and other stakeholders throughout electronics value chains.

The webinar covered:

The regulations including timelines, scope, marking requirements and exemptions, reporting, record-keeping, informational obligations, registration, compliance, enforcement, sourcing, product lifecycle, tracking and material disclosures.

Speakers included Rick Goss, VP of Environment and Sustainability at the Information Technology Industry Council (ITI), Paul Hagen, Principle at Beveridge & Diamond, and Scott Wilson, Sr. Content Strategist at IHS Inc.

© 2011, Richard Matthews. All rights reserved.

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Sustainable Supply Chains and New Environmental Laws

In the international and domestic marketplaces, laws and regulations have been implemented to regulate how manufacturers, collectors, recyclers, refurbishers and material processors should behave in an environmentally responsible manner.

Enactment of new environmental laws in the past several years—such as the European Union’s Restriction of Hazardous Substances (RoHS) and Waste Electrical and Electronic Equipment (WEEE) directives—are forcing companies to plan how they will retake possession of goods from end users at the end of a product’s life cycle.

In the face of these regulatory drivers, being sustainable and environmentally responsible in the reverse supply chain arena is a complex issue.

© 2011, Richard Matthews. All rights reserved.

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Video: Sustainable Supply Chain Course: IOM 599

This course aims to provide students with an understanding of the sustainability challenges and opportunities facing supply chains today. The course examines some of the factors that are contributing to the adoption of sustainability strategies, such as legislations that are penalizing negative environmental and social impacts, and society's expectations of business in terms of health, human rights, and the environment.

The supply chains today cannot be concerned only with creating shareholder value; their performance is also measured in terms of social, environmental and economic impact. The main topics covered in the course are sustainability concepts and frameworks, environmental legislation, sustainable design of products, renewable energy, closed-loop supply chains, facilities, locations, and transportation decisions, supplier management, and strategic sustainability implementation. The class format includes lectures, case discussions, guest speakers, and movie clips.

© 2011, Richard Matthews. All rights reserved.

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Sustainable Supply Chain Integration

An integrated sustainable supply chain, involves life-cycle management. That means considering all the steps of a manufacturing process, and all the links in the supply chain and value chain to the end of a product’s life and beyond (ie how it is disposed of).

Large corporations are realizing the importance accountability, transparency, ethical conduct, and respect for stakeholders’ interests, human rights, rule of law, and international norms of behavior in managing internal and external stakeholder expectations.

Sustainble supply chain integration is not only for large corporations it is also for SMEs. These same principles can be applied holistically throughout the entire supply/value chain.

Every product has a hidden human health, environmental and social impact along the entire supply chain. The challenge is to bring sustainable procurement into a central decision making role in line with organizational business goals.

A smart way to integrate involves testing innovative technologies as a way to reduce the product environmental footprint. Most importantly, integration involves promoting social responsibility throughout the entire supply chain; and stimulating demand for socially responsible goods and services.

Here are five basic points that contribute to sustainable supply chain integration:

1. In procurement and purchasing decisions, use criteria that select ethically and socially responsible products and companies;
2. Examine your value chain/supply chain and be sure that you are paying enough to enable your suppliers to fulfill their own responsibilities;  
3. Promote broader adoption of social responsibility through networks of manufacturing associations and business sector colleagues;
4. Seek business to business and peer network support to collaboratively develop best methods and approaches, leverage resources and document benefits;
5. Treat suppliers and customers/consumers fairly and equitably.

It is not always easy to integrate sustainable resource use and management to make manufacturing steps environmentally friendly. However, integration that relies on these values and principles of operation benefit the triple bottom line.

© 2011, Richard Matthews. All rights reserved.

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Sustainable Supply Chain Conference: Supplier Social and Environmental Performance

On October 25 and 26, there will be a practical conference on how to drive supplier social & environmental performance and deliver profitable efficiency through supplier buy-in and engagement. This conference will address ways of engaging suppliers on your Social, Environmental, and other Sustainability priorities. These events have a proven track record, with 900+ executives attending previous supply chain conferences.

PRACTICAL INFORMATION:

Achieve better supplier engagement through improved internal alignment with cross-department and function teams

Enhance procurement metrics by mapping sustainability criteria against existing purchasing priorities

Galvanize how supply chain teams think about where to source and ways to incentivize suppliers

Overcome challenges associated with identifying suitable KPIs for supplier questionnaires and scorecards

Expert tips on securing supplier buy-in even when you are not their biggest customer

Powerful techniques to increase transparency and improve traceability of sourcing

SESSIONS:

Ensure your suppliers co-operate and commit – instead of just paying lip service
At this top-level event, leading practitioners will take you step-by-step from Preparation to Implementation. Hear about where to focus your efforts, what reward structure to put in place, how to develop better scorecards and questionnaires, and much more.

Equip your procurement team with crucial business tools and processes
Procurement teams used to base their decisions primarily on price, quality and time. So what about the practical and operational challenges that emerge when social and environmental priorities are factored in? The Conference will spell out how to integrate sustainability to meet overall purchasing targets, what incentives to put in place and much more besides.

For an in-depth insight about our workshops, plenary sessions and discussion have a look at the agenda.

SPEAKERS

Conference speakers have sustainability and procurement backgrounds that match the practical emphasis of the event. This is your chance to pick the brains of senior, hands-on executives from corporate sustainability leaders including The Walt Disney Company, Bombardier Aerospace, Alcatel-Lucent, Kraft Foods, Pacific Gas & Electricity, Intel, Johnson & Johnson, MeadWestvaco, Pepsico, IBM, Office Depot, Kimberly-Clark and others..

To help you benchmark from leading US and global companies, we have also recruited one of the most respected European leader in the field: Marks & Spencer. For this one session only, we will stage a live video presentation where their company’s Head of Sustainable Business will share his wisdom and experience. Extra Q&A time has been scheduled at the end of this session.

To register click here or get more information on the Conference Agenda, rates and lodging, email cora.ng@ethicalcorp.com or call 1 800 814 3459 today.

© 2011, Richard Matthews. All rights reserved.

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Introduction to (Sustainable) Supply Chain Management
The Three Tiers of Sustainability and Supply Chains
Sustainable Supply Chains are Profitable
Case Study Illustrates the Profitability of Sustainable Supply Chains
Collaboration in Sustainable Supply Chains
Sustainable Procurement Guidelines and Procedures
Sustainable Supply Chains
Puma's Sustainable Supply Chain
PUMA's Comprehensive Sustainable Strategy Now Includes Environmental Accounting
The Sustainable Supply Chain Efforts of Interface Inc
Nike and H&M Bow to Greenpeace and Green their Supply Chains
Walmart and HP's Sustainable Supply Chains
Arizona State University and Green Supply Chains
IT Sector Should Leverage Their Supply Chains
Video: Future Supply Chain 2016
Video: Ten Steps To A Greener Supply Chain
Video: Green Supply Chain

Sustainable Procurement Guidelines and Procedures

Organizations interested in sustainable development should develop Sustainable Procurement Guidelines and Procedures. Sustainable procurement guidelines and procedures involve a holistic approach to developing more responsible procurement and supply chain strategies.

These guidelines and procedures frequently include methods of measuring sustainability, sustainable procurement standards and best practice.

Such guideline are an important part of formulating a successful action plan and quantifying the benefits generated by its implementation.

When it comes to purchasing products or services, referral to these guidelines helps to establish an organization as a leader in environmentally responsible purchasing.

© 2011, Richard Matthews. All rights reserved.

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The Three Tiers of Sustainability and Supply Chains

In 2008, The Future Laboratory produced a ranking system for the different levels of sustainability being achieved by organisations. This was called the Three Tiers of Sustainability:

Tier 1: The Basics of Sustainability

This is the firs level where companies employ simple measures such as switching lights and PCs off when left idle, recycling paper, and using greener forms of travel with the purpose of reducing the day-to-day carbon footprint. Some companies also employ self-service technologies such as centralised procurement and teleconferencing

Tier 2: Thinking Sustainably

This is the second level, where companies begin to realize the need to embed sustainability into supply chain operations. Companies tend to achieve this level when they assess their impact across a local range of operations. In terms of the supply chain, this could involve supplier management, product design, manufacturing rationalization, and distribution optimization.

Tier 3: The Science of Sustainability

The third tier involves balancing environmental, social, ethical and economic factors within a procurement and supply chain strategy. It uses auditing and benchmarks to provide a framework for governing sustainable supply chain operations. It considers agility, flexibility, and cost in the supply chain network. Moving towards this level means being driven by the current climate as well as pushing emerging regulations and standards at both an industry and governmental level.

Time and quality based competition eliminates of waste in the form of time, effort, defective units, and inventory in manufacturing distribution systems.

Two capabilities that are useful in a time and quality based competitive environment are agility and flexibility. With faster product innovations, decrease product life cycles, and rapid imitative competition, only firms that are agile and flexible will survive.

Agility is the agility to respond quickly to changes in the marketing environment. Agile firms are able to successfully market low-cost, high-quality products with short lead times in varying volumes that provide enhance value to customers through customize.

Flexibility is defined as the capability of changing from one task to another rapidly when changing conditions are defined ahead of time.

© 2011, Richard Matthews. All rights reserved.

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The Rise of Sustainable Supply Chains
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Case Study Illustrates the Profitability of Sustainable Supply Chains

Research published in Supply Chain Management: An International Journal, shows that sustainable supply chains can be profitable. By focusing on personal relationships built on trust, a collaborative supplier network can outperform a buyer-centric “mission control” supply chain. According to this research, such a network results in a steady supply as well as financial benefits to suppliers and quality assurance.

A Cranfield School of Management case study by Alvarez, Pilbeam and Wilding, consulting used historical documents and conducting employee interviews. The profitability of a sustainable supply chain was illustrated by Nespresso, a division of Nestlé. In the 1990s the company was struggling to meet growing demand for high-quality coffee. It needed a sourcing strategy that improved conditions for subsistence farmers while ensuring a reliable supply of high-quality product over the long term.

In 2003, Nespresso created the AAA Sustainable Quality Program with just three initial partners: two coffee suppliers and an NGO. By 2007, the network had grown to include 14 partners in five countries, and Nespresso sales had reached 1.7 billion CHF (Swiss Francs) – compared to 445 million CHF in 2003.

Here are five keys to Nespresso’s supply chain success:

1. Dive In. Nespresso opted not to do extensive planning or budgeting in advance of the program launch. Instead, they experimented as they went and allocated resources from existing departments to the project.

2. Pick a Few Strategic Partners. Nespresso started with only three initial partners. One of those partners was an NGO, Rainforest Alliance, which possessed subject-matter expertise and conferred credibility on Nespresso’s activities.

3. Focus on Quality. Nespresso focused on generating premium coffee, not letting their sustainability efforts overshadow the need for high-quality product. Nespresso also paid a premium to their coffee growers.

4. Communicate Often. The supplier network partners interacted frequently – by phone, video conference, email and even face-to-face meetings in coffee producers’ countries.

5. Introduce Policies as You Grow. Initially, they relied on trust and personal relationships to keep the program moving. As its supplier network grew, Nespresso introduced formal governance mechanisms such as objective-setting sessions, contracts, guidelines, project reports, stakeholder forums and annual review meetings with suppliers.

© 2011, Richard Matthews. All rights reserved.

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Environmental Regulations Shaping Today's Sustainable Supply Chains
Sustainable Supply Chains and New Environmental Laws
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Sustainable Supply Chains are Profitable
Collaboration in Sustainable Supply Chains
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Video: Future Supply Chain 2016
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Sustainable Supply Chains are Profitable

Sustainable supply chains frequently translate to profitable supply chains. There is growing interest in sustainable supply chains that serve environmental and economic objectives. Growing consumer pressure for eco-friendly products are driving sustainable supply chains with smaller footprints. Sustainable supply chains also reduce costs through improvements in efficiency.

Sustainable supply chains involve procurement that maximizes net benefits for companies and the wider world. These companies incorporate extrinsic cost considerations into decisions alongside the conventional procurement criteria of price and quality. These environmental, economic and social consideration are also known as the “triple baseline”.

Dave Meyer, Sustainable Economic and Environmental Development Solutions (SEEDS) Global Alliance (Northwest Operations) and SVP of Greenbridge International, LLC., told a gathering of logistics and supply chain professionals that there is a bottom line angle to towing the green line.

Environmental, risk, and waste costs make supply chain sustainability a profitability issue.Sustainability in the supply chain is increasingly seen among high-level executives as essential to delivering long-term profitability and has replaced monetary cost, value, and speed as the dominant topic of discussion among purchasing and supply professionals.

Organizations are looking at supply chain sustainability as a new measure of profitable logistics management. One powerful tool to increase efficiency comes from integrating functional activities through information technology that reduce associated costs.

Green procurement is not only a tool with which to address climate change, but it offers the broader capacity to mitigate over-exploitation of any and all scarce resources.

Better methods of defining supply chain sustainability and benchmarking are making it easier to implement sustainable action plans. Companies increasingly recognize significant cost savings through green operations that include a more sustainable supply chain.

© 2011, Richard Matthews. All rights reserved.

Related Posts
The Rise of Sustainable Supply Chains
Environmental Regulations Shaping Today's Sustainable Supply Chains
Sustainable Supply Chains and New Environmental Laws
Sustainable Supply Chain Integration
Introduction to (Sustainable) Supply Chain Management
The Three Tiers of Sustainability and Supply Chains
Case Study Illustrates the Profitability of Sustainable Supply Chains
Collaboration in Sustainable Supply Chains
Sustainable Procurement Guidelines and Procedures
Sustainable Supply Chains
Puma's Sustainable Supply Chain
PUMA's Comprehensive Sustainable Strategy Now Includes Environmental Accounting
The Sustainable Supply Chain Efforts of Interface Inc
Nike and H&M Bow to Greenpeace and Green their Supply Chains
Walmart and HP's Sustainable Supply Chains
Arizona State University and Green Supply Chains
IT Sector Should Leverage Their Supply Chains
Video: Future Supply Chain 2016
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Video: Green Supply Chain