Sustainable Procurement: A Discussion with the Sustainable
Transcription
Sustainable Procurement: A Discussion with the Sustainable
Sustainable Procurement: A Discussion with the Sustainable Purchasing Leadership Council (SPLC) and The Sustainability Consortium® (TSC) Tuesday, March 24, 2015 © 2014 BrownFlynn Ltd. All Rights Reserved. Do Good. Do Well. Win.™ Thought Leadership Councils (TLCs) The Thought Leadership Councils (TLC’s) are groups within the Association that members can join to drive learning and development within the CR community. Each Council meets via GoToMeeting® teleconference on a monthly basis, providing our members the opportunity to interact with industry peers. This enables you to get the most out of your membership and share successes, practices, and publish new findings. Each is Chaired or Co-Chaired by Members dedicated to achievement of that TLC’s goals, and reports to both the Board and the community at large regarding progress toward the TLC’s goals. There are five Thought Leadership Councils in which members can join. Brand & Reputation Management – Meets the 1st Wednesday of the Month at 4PM ET. Diversity & Inclusion – Meets the 2nd Tuesday of the Month at 1PM ET. Ratings & Rankings – Meets the 1st Thursday of the Month at 3PM ET. Professional Development – Meets the 3rd Thursday of the Month at 1PM ET. Responsible Supply Chain – Meets the Last Tuesday of the Month at 4PM ET. © 2014 BrownFlynn Ltd. All Rights Reserved. /2 Sustainable Procurement: A Discussion with the SPLC and TSC Hosts: Corporate Responsibility Association (CRA), Responsible Supply Chain Thought Leadership Council Panelists Moderators Allie Williams, Executive Director, CRA Mike Wallace, Managing Director, BrownFlynn, Chair of the Responsible Supply Chain Thought Leadership Council © 2014 BrownFlynn Ltd. All Rights Reserved. /3 Maturing Market Dynamics © 2014 BrownFlynn Ltd. All Rights Reserved. Who is reporting? © 2014 BrownFlynn Ltd. All Rights Reserved. /5 STAKEHOLDERS / REGULATORS Market & Government Regulatory Involvement Stock Exchange Activity International Regulatory & Public Agency Activity US Regulatory, Public Agency & Professional Industry Activity © 2014 BrownFlynn Ltd. All Rights Reserved. /6 Financial Market Uptake Principles for Responsible Investment (PRI) [2006] Currently represents over $34 Trillion in investment capital Over 1,200 signatories Investor Network on Climate Risk (INCR) [2003] Currently represents over $9 Trillion in investment capital 90+ members Carbon Disclosure Project (CDP) [2002] Currently represents over $71 Trillion in investment capital act on behalf of 551 institutional investors Institutional Investors Group on Climate Change (IIGCC) [2001] Currently represents $6 Trillion in investment capital 70 members Interfaith Center on Corporate Responsibility (ICCR) [1972] Currently represents over $100 Billion 300 members © 2014 BrownFlynn Ltd. All Rights Reserved. /7 What’s Happening in Sustainability Explosion of Reporting Frameworks, Ratings, Rankings, Researchers and Surveys © 2014 BrownFlynn Ltd. All Rights Reserved. /8 Supply Chain Developments Sustainability Training - Nike Puma Apple AT&T, Inc. Mattel Bristol-Myers Squibb Campbell’s Intel Sustainability Surveys - IBM Airbus Kaiser Permanente Siemens Marathon Oil British Telecom Boeing Ingersoll Rand Volvo United States Postal Service Wal-Mart BMW Johnson Controls CR’s Top 10 Best Corporate Citizens 2013 © 2014 BrownFlynn Ltd. All Rights Reserved. /9 Who has a supply chain? © 2014 BrownFlynn Ltd. All Rights Reserved. / 10 Sustainable Procurement: A Discussion with the SPLC and TSC Hosts: Corporate Responsibility Association (CRA), Responsible Supply Chain Thought Leadership Council Panelists Moderators Allie Williams, Executive Director, CRA Mike Wallace, Managing Director, BrownFlynn, Chair of the Responsible Supply Chain Thought Leadership Council © 2014 BrownFlynn Ltd. All Rights Reserved. / 11 About The Sustainability Consortium (TSC) Enabling the consumer goods industry to provide more sustainable products • A multi-stakeholder non-profit organization that translates scientific information into business practice • Mission: to design and implement credible, transparent and scalable, science-based measurement and reporting systems accessible for all producers, retailers, and users of consumer products • A global organization, with offices in the United States, Europe and China • >100 Members and 1000s of users worldwide © 2015 Arizona State University and University of Arkansas 12 TSC’s metrics are used by buyers and suppliers to address product sustainability in a cost efficient way Buyers • Hotspots Communicate efficiently and effectively with suppliers: • Improvement opportunities • Ask category-specific questions • Track supplier performance using KPIs • Key Performance Indicators Suppliers Address product sustainability more effectively and efficiently: • Use a single reporting tool across buyers • Enhance product development • Reduce spending on sustainability research and reporting • Evaluate performance of their suppliers Hotspot: Sustainability focused social and environmental high impact areas © 2015 Arizona State University and University of Arkansas v v v v • Category Sustainability Profiles v v v v TSC® provides Improved product sustainability and cost efficiency How TSC’s Product-Category Approach Fits In How TSC Fits In Our Approach to Sustainability • Business-focussed: 80:20 rule, driving action today Breadth Corporate Reporting • Covering social & environmental TSC Product Category “Traditional” LCA • Full lifecycle approach, drawing on best available science and multi-stakeholder input • Nearing target: covering 60-80% of consumer goods impacts • Completed 110 product categories (a handful left) Detail/Specificity © 2015 Arizona State University and University of Arkansas 14 TSC Metrics are Aligned with Key Initiatives TSC has adopted KPIs/metrics and referenced key initiatives. EU PEF is next Sector Examples of Aligned Initiatives CrossSector: Food, Bev. & Agri.: Electronics: General Merchandis e: Clothing: Toys: Packaging : 15 How Does TSC Create a Product Sustainability Toolkit? Science-based and stakeholder informed Life Cycle Perspective Category 1 Product Selection of 2 Review Scientific Sources Hotspot 3 Lifecycle Identification Toolkits reveal social and environmental hotspots from throughout the product category life cycle 4 Improvement Opportunity 5 Evidence Evaluation Performance 6 Key Indicator Design 7 Stakeholder Reviews Publication 8 Toolkit and Use 9 Toolkits Updated Identification Multi-Stakeholder Process TSC members and invited participants are stakeholders from business, civil society, government, and academia who collaboratively develop the Product Sustainability Toolkits © 2015 Arizona State University and University of Arkansas 16 TSC takes a Lifecycle Approach Chicken Supply Chain Overview Hotspots & Sustainability Issues © 2015 Arizona State University and University of Arkansas TSC working groups are across consumer goods sectors. ELECTRONICS GENERAL MERCHANDISE FOOD BEVERAGE & AGRICULTURE CLOTHING, FOOTWEAR & TEXTILES HOME & PERSONAL CARE RETAIL PAPER, PULP, & FORESTRY PACKAGING TOYS MEASUREMENT SCIENCE Four years ago, when I received an email from the wine team asking for an attribute in bulk shipping, I would have spent two weeks on Google, and talking to people about wine, trying to understand if bulk shipping counted. I probably would have told them no. My buyer would have sulked, given up on sustainability and we would have not made progress in the wine category. This year, I looked up the information in The Consortium’s CSPs and KPIs. I then checked this information against the supplier and wrote an email back that day approving the category. Carmel McQuaid, Marks & Spencer © 2015 Arizona State University and University of Arkansas Walmart leverages TSC metrics to create its Sustainability Index Research Issues & Engage Stakeholders Develop Metrics to Quantify Sustainability Survey Suppliers & Collect Data Identify Improvement Opportunities Who: • 100+ members; including our biggest suppliers, competitors, NGOs, universities, & experts Who: • Buyers, Category Directors, Sourcing Directors, Product Development & Quality Teams Key Deliverable: ▪ Key Performance Indicators (KPIs) that are used to survey suppliers & measure their sustainability performance Key Deliverable: • Category Scorecards that are used to set baselines, benchmark suppliers, track progress, & identify leaders and laggards Walmart recently launched its Sustainability Leaders badge using TSC metrics “Supplier 15 Questions” 2009 Enabled Walmart to: • Send the sustainability signal to our supply chain Measurement by category 2012 and Beyond Also enables Walmart to: • Understand what is relevant by category • Track progress over time Recognition on Walmart.com Starting in 2015 Will further enable Walmart to: • Communicate leading brands to the customer Launching 2015 TSC is not just Metrics: TSC Implementation Services The Sustainability Consortium: • Develops and maintains a rich database of sustainability information and research. • Develops business tools based on that research • Facilitates integration of tools to drive implementation Mission: Improved Product Sustainability • Impact only comes when the supply chain is using tools and metrics to drive improvement in product sustainability TSC is not just metrics, also about integration and implementation of metrics • Providing improvement opportunities to help drive change within product categories • Aligning metrics to facilitate use of tools across industry and supply change • Developing guidance tools to further facilitate decision making • Providing trainings and advisory services © 2015 Arizona State University and University of Arkansas Implementation training, consulting, custom reports Category Tools, Guidance Tools Research Database: Hotspots, Improvement Opportunities, KPIs, references 21 TSC Implementation Services Driving impact through implementation of TSC tools • Online training tool for users to self-teach Online Training Portal Webinars • Training materials, worked examples and recorded webinars on topics such as: TSC & TSC Toolkit contents; responding to a retailer KPI request; implementing TSC’s Tools; and more • For Non-Members: Intro webinars on TSC, Toolkits, KPIs and responding to retailers’ requests • For TSC Members: Iin-depth training on identifying and implementing improvements, demonstrating progress etc. • Workshops and in-person training projects with TSC Members, identifying needs and supporting implementation Implementation Projects • Launching programs for non-Members soon • Plans to build ecosystem of consultants, certification bodies and other partners to support users © 2015 Arizona State University and University of Arkansas 22 A new online educational platform that provides guided practice on using TSC tools and services that address issues related to product sustainability in the supply chain Learn more at http://www.sustainabilityconsortium.org/tsc-learning-center/ Registration opens mid-February Questions? Email [email protected] © 2015 Arizona State University and University of Arkansas 24 25 Analysis by TRUTHstudio based on US Bureau of Economic Analysis 2011 Summary Use Annual I-O Table “ Our acquisition of goods and services creates a carbon footprint nine times that of our buildings and fleet, put together.” Dan Tangherlini Administrator US General Services Administration 26 DEFORESTATION OVERFISHING DISCRIMINATION SWEATSHOPS 27 28 29 30 31 Could we collaborate to launch a shared program for guiding, measuring, and recognizing leadership in sustainable purchasing? 32 33 The timeline… 34 2013 2014 2015 Launch Event Viewed by 1000+ organizations in 46 countries. Hosted at American University. Moderated by Joel Makower and broadcast by 35 2013 2014 2015 Founders Circle formed City of Portland, OR City of San Francisco, CA State of California City of Washington, DC State of Michigan State of Minnesota U.S. DEPARTMENT of AGRICULTUR E 36 2013 2014 2015 Strategic Partners engaged 37 2013 2014 2015 Founding Summit 38 2013 2014 2015 Website launched www.sustainablepurchasing.org 39 2013 2014 2015 Membership opens A big tent. 40 2013 2014 Membership opens Accenture Aflac Alameda County, CA American Chemistry Council American Clean Skies Fdn American Coatings Assoc. American University Apex Clean Energy Aramark Arizona State University Arlington County, VA Asia Pulp & Paper ASSA-ABLOY AASHE Belk, Inc. Best Buy Biosynthetic Technologies Bloomberg BSR BuildingWise, LLC Business & Institutional Furniture Manufacturers Association Caesars Entertainment California DGS CalRecycle Canadian Aboriginal and Minority Supplier Council CBRE CEGESTI Center for Resource Solutions CIPS Sustainability Index CRG SustainableSolutions Citi City & County of Denver, CO City of Cleveland City of Portland, OR City of San Francisco, CA City of Santa Monica City of Seattle, WA Coalition of Immokalee Workers Code Earth Group Consumer Specialty Products Association Dell Domtar EcoBuilder Consulting Ecoinstitut EcoLab EcoVadis Edelman EI Analytics Elliott Affiliates, Ltd. Emory University FairTrade USA FedEx Forest Stewardship Council Goodyear Green Electronics Council Green Seal, Inc. GreenCircle Certified Haworth Inc. HDR Architecture, Inc. Health Care Without Harm IERS iFixIt Interface Americas, Inc. International Campaign for Responsible Technology Int’l Labor Rights Forum ISEAL Alliance JCPenney King County, WA Kohler Company Kuhn Associates Sustainability Advisors Leonardo Academy LittleFootprint Lighting Lockheed Martin Mahindra Sanyo Special Steel Pvt. Ltd. Massachusetts Operational Services Division Massachusetts Water Resources Authority Michigan Department of Environmental Quality Michigan Department of Technology, Mgmt & Budget Michigan State University MindClick Group Minnesota Materials Management Division Minnesota Pollution Control Agency Multnomah County, OR Municipal Collaboration for Sustainable Procurement 2015 Today: ~140 members; > $200bn in spend North Shore LIJ Health Sys Northbound Ventures, LLC Northeast Recycling Council Office Depot Pacific Gas & Electric PE International Perlmutter Associates Portland Community College Portland State University Practice GreenHealth PROSOCO Province of Nova Scotia PRé Sustainability re:sustain RepRisk AG Resource Recycling Systems Responsible Purchasing Net. REUSA-WRAPS Reusable Logistics Solutions, LLC Rivanna Natural Designs Roundtable on Sustainable Biomaterials SciQuest SCS Global Services Snohomish County Social Hotspots Database Project Sound Transit Southern Connecticut State University Sphere E Sustainable Flows Sustainable Forestry Initiative, Inc. Sustainable Green Printing Partnership, Inc. Sustainable Methods Inst. Sustrana TD Bank Group The CarbonNeutral Co. The District of Columbia The George Washington University TreeZero Paper Trucost UL Environment United Soybean Board University of California, Santa Barbara University of Pennsylvania University of Texas, Austin UPS US Department of Agriculture US Department of Energy US EPA US GSA US Green Building Council Venable LLP Waste Management World Resources Institute World Wildlife Fund 41 2013 2014 2015 Principles released www.sustainablepurchasing.org/principles/ 42 2013 2014 2015 Principles released www.sustainablepurchasing.org/principles/ 43 2013 2014 2015 Annual Summit 175 Attendees, 121 Organizations, 20 Workshops 44 2013 2014 2015 Program Committees formed Technical Advisory Committee (TAC) SPLC Board Ad Hoc Work. Groups Purchasing Category TAG Purchasing Category TAG SPLC Staff Purchasing Category TAG 45 2013 2014 2015 Program Committees formed 46 2013 2014 2015 Guidance v1.0 Release www.sustainablepurchasing.org/guidance/ 47 2013 2014 2015 Pilot phase www.sustainablepurchasing.org/pilot/ 48 2013 2014 2015 Pilot phase www.sustainablepurchasing.org/pilot/ 49 2013 2014 2015 Pilot phase www.sustainablepurchasing.org/pilot/ 50 2013 2014 2015 Pilot phase www.sustainablepurchasing.org/pilot/ 51 2013 2014 2015 Pilot phase www.sustainablepurchasing.org/pilot/ 52 2013 2014 2015 SPLC Connect May 26, 2015 www.sustainablepurchasing.org/connect/ 53 2013 2014 2015 SPLC Summit May 26-28, 2015 www.sustainablepurchasing.org/summit/ 54 2013 2014 2015 Rating System begin development 55 Ways to engage. www.sustainablepurchasing.org… Become a member of the Council. Participate in piloting the Guidance. Provide feedback on the Guidance. Submit a case study for an Award. Attend or present at the 2015 Summit. Participate in buyer-supplier matchmaking Apply for a technical committee. Stand for election to the Board. 56 … /membership … /pilot … /guidance … /awards … /summit … /connect … /tags … /governance W W W. S U S TA I N A B L E P U R C H A S I N G . O R G 57 Thank You Do Good. Do Well. Win.™ Mike Wallace Managing Director, Chair of the CRA Responsible Supply Chain Thought Leadership Council (424) 320 3501 [email protected] © 2014 BrownFlynn Ltd. All Rights Reserved. Allie Williams Executive Director Corporate Responsibility Association (215) 606-9523 [email protected]