Adams - Greening Your Supply Chain

Greening Your Supply Chain

Georjean L. Adams EHS Strategies, Inc.

Environmental Initiative BES

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Recycle

Use

Sup

ply

Make

Ideal Supply Chain Life Cycle

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Inefficient yieldand transfer

Recycle

Use

Su

pp

ly

MakeRaw Materials and Energy use

Emissions, dischargesand exposures

Safety and toxicityhazard

Real Life

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LIFE CYCLE IMPACTS


Why Green Your Supply Chain?

dollar savings through energy, materials and waste reduction

avoid regulatory costs and liabilities

enhanced reputation - brand and employee loyalty

customer demand for environmentally preferred/green

Reduced impact on the environment

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Inefficient yieldand transfer

$

$

$

$

Recycle

Use

Su

pp

ly

Make$Raw Materials and Energy use

Emissions, dischargesand exposures

Safety and toxicityhazard

Real Life

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LIFE CYCLE IMPACTS


Inputs Outputs

EnergyProduct

waste EmissionsSolid & Liquid wastesWastewater

Raw Materials

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Green Inputs Green Outputs

ENERGYRAW MATERIALS

PRODUCT

WASTES

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Greener Resources

Renewable

Low “embedded” energy

Low GHG/carbon footprint

Low toxicity

Biodegradable

Recycled content

Recyclable

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Green and Lean

ENERGY

RAW MATERIALS

PRODUCTS

Wastes

Reduce Inputs/Waste

Recycle/Reuse Wastes

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Lean Suppliers = Greener Suppliers

o Overproduction

o Inventory

o Transportation

o Defects

o Over processing

o Waiting

o Energy [GHG, nonrenewable fuels]

o Materials and water consumption

o Waste - hazardous and solid

o Air pollution

o Water pollution

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reduced impact on the environment

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customer demand for environmentally preferred/green products (esp. B2B)

Reduced impact on the environment

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Customers Want to be Green

B2B, Government and Consumers

Environmentally preferred purchasing Bio-based Renewable Recycled content Recyclable Low energy Less toxic Reduced packaging

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B2B Demands for Information

Regulatory Compliance Declarations RoHS, REACH SVHC Inventories Conflict Minerals

Customer Black Lists Regulatory + company “hit” list OEM data bases – IMDS (auto), BOMcheck (electronics)

Full Material Declaration Rapid response to new listings Life cycle assessment

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Sustainability Index

Energy and Climate: Reducing Energy Costs and Greenhouse Gas Emissions

Material Efficiency: Reducing Waste and Enhancing Quality, Packaging

Natural Resources: Responsibly Sourced Raw Materials

People and Community: Ensuring Responsible and Ethical Production

Sustainability Consortium with 30 other firms 8/18/2011

http://walmartstores.com/Sustainability


Sustainable Apparel Coalition

http://www.apparelcoalition.org/ http://ecoindexbeta.org/

Adidas …Environmental Defense Fund…Gap Inc., HanesBrands…JC Penney, Kohl’s Department Stores… Levi Strauss & Co… L.L.Bean, Marks & Spencer … Nike, Nordstroms… Patagonia… PUMA, REI … Target, Timberland, USA DuPont, EPA … Walmart

Engage upstream suppliers to collect data for index

Minimal level of specified best practices

Share best practices to improve whole industry supply chain

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http://www.apparelcoalition.org/

http://ecoindexbeta.org/


Supplier Scorecard

Energy Usage – electric, fuel, renewable

Water Usage – input/withdrawal, output/discharge

Waste Disposal – hazardous and nonhazardous, recycled

Kyoto gases – direct and indirect

Annual output used to calculate intensity of above

P&G Sustainability Ideas & Initiatives

Fines & Sanctions

Environmental Management System

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Kaiser Permanente Supplier Scorecard

Corporate: sustainable policy, reporting, ISO, local food, waste, recycling, GHG, EPEAT, Energy Star, materials composition

SKU: BPA, RoHS, halogens, phthalates, Prop 65, antimicrobials, hazardous waste, reusable, recycled content, composition

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Life cycle assessment of their products Cradle to cradle

two-hour tour of suppliers' facilities

documentation of the supplier's environmental policies and performance

follow-up done every 12 to 18 months

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Suppliers shall commit to reducing the environmental impact of their designs, manufacturing processes, and waste emissions.

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Roadmap to Sustainability:

Companies will ensure that suppliers meet the same environmental and social standards as the company has set for its internal operations

- including disclosure of goals and performance metrics

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http://www.ceres.org/company-network/ceres-roadmap/ceres-roadmap








Sustainability (green + economics + social)

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Ask Yourself

Do you understand the environmental/health impacts associated with your products throughout their life cycle? Who your suppliers are? What is in your raw materials and products? What happens downstream - distributors, users and

disposal?

What do your customers want?

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Benchmark

Standards: Global Reporting Initiative, ISO 14000, Ceres, Natural Step, Responsible Care

Relevant business leadership groups

Identify your strengths and weaknesses

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http://www.globalreporting.org/Home

http://www.ceres.org/

http://www.naturalstep.org/

http://www.icca-chem.org/en/Home/Responsible-care/


Communicate with Supply Chain

Develop shared goals and targets

Measure

Evaluate and improve

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Get comfortable with TRANSPARENCY


Resources

Case Studies: http://www.pprc.org/pubs/grnchain/casestud.cfm

Green Suppliers Network: http://www.greensuppliers.gov/

EPA Lean: http://epa.gov/lean

MnTAP: http://www.mntap.umn.edu

Network for Business Sustainability http://nbs.net/knowledge/supply-chain/

http://Ehsstrategies.com

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http://www.pprc.org/pubs/grnchain/casestud.cfm

http://www.greensuppliers.gov/



http://epa.gov/lean

http://www.mntap.umn.edu/

http://nbs.net/knowledge/supply-chain/



http://Ehsstrategies.com/

http://Ehsstrategies.com/