PRME Webinar on Supply Chain Sustainability

7 June 2013 – 10:00 AM EDT

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Agenda

Introduction to PRME

Jonas Haertle, Head, PRME Secretariat

Introduction to Supply Chain SustainabilityAnita Househam, Issue Manager, Supply Chain Sustainability, UN Global Compact

Members of the Advisory Group on Supply Chain Sustainability• TRACEABILITY: Peter Perrault, Lead Consultant, Infosys Sustainability• ANTI-CORRUPTION: Cecilie Hersleth, Legal Manager, Business Assurance, Telenor

Proposal for Collaboration

Mads Øvlisen, Chair, UNGC Advisory Group on Supply Chain Sustainability

Q & A: Remaining Time

Principles for Responsible Management Education (PRME)

• Launched in 2007, UN-backed initiative to change the curriculum, research and learning methods of management education based on UN Global Compact/ Corporate Sustainability approach

• Leading global platform for open dialogue and collaborative learning on responsible management and leadership education

• The Six Principles of PRME are inspired by internationally accepted values and seek to establish a process of continuous improvement among institutions of management education

• 2012/2013: Introduction of PRME Regional Chapters and PRME Champions group

• 495+ business schools/ management-related academic institutions and universities from 80+ countries

PRME Working Group Projects & Reports

Anti-Corruption in Curriculum

Change

Poverty, a Challenge for Management Education

Gender Equality

UN Global Compact -Supply Chain Sustainability3rd Advisory Group Meeting

Mexico City, Mexico

2-4 March 2011

Supply Chain Sustainability

- An Introduction

7 June 2013

Anita Househam, Issue Manager, Supply Chain Sustainability

Purpose – Bringing it Together

The UN Global Compact Advisory Group on Supply Chain Sustainability

• A.P. Moller—Maersk (Denmark)

• ArcelorMittal (Global)• Boyner Holding (Turkey)• BSR (Global)• Cemex (Mexico)• Cisco Systems Inc. (USA)• Det Norske Veritas AS (DNV)

(Norway)• Ford Motor Company (USA)• Hitachi, Ltd. (Japan)• Inditex S.A. (Spain)• Infosys Technologies Ltd

(India)• Innovation Norway (Norway)

• Mahindra & Mahindra Limited (India)

• Nestlé S.A. (Switzerland)• Nokia (Finland)• Reed Elsevier Group plc (UK)• Restaurantes TOKS (Mexico)• Safaricom Limited (Kenya)• Sedex (UK)• Social Accountability

International (SAI) (Global)• Arche Advisors (USA)• Telenor Group (Norway)• Volkswagen

Aktiengesellschaft (Germany)

Tools and Resources Supply Chain Sustainability - A Practical Guide for Continuous Improvement

Launched June 2010 Practical guidance to develop a sustainable supply chain

programme Features numerous good corporate practices and other

initiatives Based on the values and principles of the UN Global

Compact 2011: Developed SME Quick Guide: Supply Chain

Sustainability – A Practical Guide for Continuous Improvement for Small and Medium Enterprises

Tools and Resources

Website: Sustainable Supply Chains – Resources and Practices

‘One-stop-shop’ for business

Includes information about sustainable supply chain:• Initiatives• Resources • company practices

Articles searchable by issue area, sector, region and practice category

Register and submit articles

http://supply-chain.unglobalcompact.org/

Tools and Resources

Quick Self-Assessment & Learning Tool

Launched June 2012 Identify strengths and

areas of improvement Benchmark your

company’s approach Scorecard with

benchmarking results and recommendations

References to additional resources, company practices and initiatives

http://supply-chain-self-assessment.unglobalcompact.org/

Additional initiatives/work areas

Promote Good Practices• Webinar Series • Good Practice Notes (in collaboration with HRWG)• Note on Occupational Health & Safety (in collaboration with

Better Work/ILO/IFC)• Engagement with Global Compact Local Networks

Issue Specific Activities• Practical Guide on Supply Chain Traceability – initial stages• Stand Together Against Corruption –A Practical Guide – final

stages• Occupational Health & Safety - emerging

Peter Perrault Lead Consultant, Infosys Sustainability

An Overview of the Traceability Task Force

Process

1.Research & Consolidate Resources

2.Analyze & Define Key Issues

3.Survey AG and Conduct In-Depth Interviews

4. Incorporate Findings and Revise Scope

5.Finalize & Present to AG

6.Phase II Recommendations

Inputs from BSR, Infosys, Nestlé, Sedex, and UNGC; More than 40 sources covering 20+ sectors

•Early findings:• Overarching categories: Human Rights, Labor, Anti-Corruption, Environment –

strong interrelationship among issues• Prioritization and approach are key questions for firms• Highly driven by industry, sector or commodity; a/o by phase-specific activities• Existing policies/regulations may assist in reporting guidelines• Broader goal to enhance transparency and collaboration to understand

impacts – traceability doesn’t inherently mean physical tracing•Existing definitions: ISO 8402 (ISO 9000)•Existing Standards & Initiatives Include:

Review of Completed Research

Forestry Stewardship

Council (FSC)

Better Cotton Initiative (BCI)

GS1 Traceability Standard

The Produce Traceability Initiative

(PTI)

Can-Trace UTZ Certified Fair Trade CertifiedMarine Stewardship

Council

Combined Bar Chart Ranking Issues of Importance for Respondents’ Company (12 respondents)

Survey Findings

Wood Cocoa Minerals

Companies Interviewed:•IKEA•Staples•Tetra Pak•B&Q

Combination of strong legal requirements & strong global, collaborative traceability scheme makes traceability a worthwhile strategy

Timber traceability is well-established, and the companies interviewed have been engaged in this process for a long time

Companies Interviewed:•Nestlé•Mondeléz (TBC)•Mars (TBC)

Companies aim to:•Secure supply/improve farmer practices•Address key labor issues – child labor and slavery

Alternative strategies:•direct purchase of cocoa•invest in farm communities•support collaborative programs, e.g. – ICI; focus on farm level capacity building and training•Leverage existing labeling schemes, e.g. – Fair Trade

Companies Interviewed:•Ford•Volkswagen•Hitachi•Telenor

Dodd-Frank and potential European legislation affect companies’ need to ensure their products are conflict-free

Highly visible topic with much media attention

EICC/GeSI Conflict-Free Smelter Program currently the most established program; does not affect all sectors

Firms are early in the development process

Interview Findings by Commodity

Interview Findings: Where Traceability Works

• Strong internal policy & collaborative scheme• Buyers must adhere to policy• Top management support • Integrated procurement processes• Resources dedicated to implementation

• Must certify to required scheme• Must document proven chain of custody• Subject to audits

• Certified as part of chain of custody• Subject to random audits by relevant

certification bodies

• Certify source/site of raw material• Subject to regular audits

Standard/certification for:•Source •Chain of custody •Processes of direct suppliers and brand/ companyConduct auditsProvide Data Store

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Shaping an Effective Traceability Program

Phase II Recommendation: Develop 3 Part Guide

Anti-Corruption – A Practical Guide

PRME Webinar on Supply Chain Sustainability, 7.6.2013

Cecilie Hersleth, Legal Manager, Business Assurance

1. Introduction - Aim of our work

• Cooperation

• Best practise sharing

• Networking

• Developing useful tools and guiding documents

 

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UNGC Task force

• A practical guide with operational guidance on managing anti-corruption, focused specifically on the supply chain

• Short, basic and inspiring

• Supplementary to other UNGC documents

• Preventive day to day work

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What does the new Guide include?

• Examples of corruption in the supply chain

• Main elements of an efficient anti-corruption program

• Preventive corruption activities towards suppliers

• Company examples

• References to other UNGC documents

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Thank you

Proposal for Collaboration

Incorporating the sustainability agenda in the supply chain management curriculum Brief note for academics Platform for existing tools, curricula, publications etc Template workshops for academics

Understanding supply chain sustainability, impacts and needs Analysis of GC participants on management of SCS Case Studies Research on potential impacts of existing tools/resources

Contribution to existing activities of the Advisory Group Analysis of Traceability and social auditing systems Case studies

Thank You

Thank you for joining us today. Presentation slides and a recording of the webinar

will be available on the PRME website.

If you have any additional questions, please contact: Anita Househam: househam@un.org (UNGC)

Magdalena Thurig: thurig@unglobalcompact.org (PRME)