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1. The Latest Sustainability Trends & Current States Around The World
2. How Do Organizations Generate Value From Sustainability Programs?
3. What Can You & Your Organizations Do?
4. Pathway to Sustainability
Jumpstart Success in
Your Supply Chain
“Sustainability Trends That Will Make
The Biggest Impact On Your Organization”
Jit Hinchman, M.Eng, M.Sc, CSCP, CLSS
Founder & President of Supply Chain Adviser™ LLC.
Sustainable Supply Chain Global Ambassador
©2021. All Rights Reserved. Supply Chain Adviser LLC.
The Power of Responsibility & Opportunity
“In 1994, Ray Anderson, the founder & CEO of Interface, was asked to comment on the company’s
environmental vision at an internal work meeting. Interface was a large player in the international carpet
market, & the reason for the meeting was that the company’s customers & collaborative partners had begun
to question how its carpets were manufactured & what influence Interface had on society & the
environment (Anderson 2002).
It suddenly occurred to him that the company he had been running for 21 years not only lacked an
environmental vision but rather the company was an environmental culprit. is was a revelation to Anderson,
& it led to his vision of reducing Interface’s ecological footprint to zero by 2020 (“Mission Zero”). is
required an entirely new way of thinking and a completely new business model to turn the company around
from being an environmental villain to becoming a leader in sustainability (Anderson 2010).
To achieve this ambitious objective, the company needed to develop new products & had to turn its
processes upside down to find new ways of designing, manufacturing & distributing its carpets.
When carpet tiles were destroyed or worn down, Interface replaced them and collected the old tiles for reuse
in the production of new carpets. In this way, Interface could sell more services to its customers, while at the
same time driving down the cost of input factors for its carpets.” (S. Jørgensen, L. J. T. Pedersen, 2018)
In addition, it aimed to find alternative sources of energy. Perhaps most fundamentally, Interface changed
its business model from one based on selling carpets to end users to a business model based on a so-
called product-service system. is implied that it leased carpets to its customers, in a way that the company
had the responsibility for maintenance, cleaning and so on.
©2021. All Rights Reserved. Supply Chain Adviser LLC.
2. How Do Organizations Generate Value From
Sustainability Programs?
3. What Can You & Your Organizations Do?
4. Pathway to Sustainability
1. The Latest Sustainability Trends & Current States
Around The World
©2021. All Rights Reserved. Supply Chain Adviser LLC.
1. The Latest Sustainability Trends &
Current States Around The World
• Latest Trends & Current States
• The ethical & moral calling to address & response
to problems in Sustainability & Social
Responsibility
• Shift in market demand: Customer preferences,
Stakeholder, Investor’s Behavior
• Opportunities in Digitization & Technology:
Growth & Survival
• Pressures from policies, regulations, & governance:
Requirements
2. How Do Organizations Generate Value
From Sustainability Programs?
3. What Can You & Your Organizations Do?
4. Pathway to Sustainability ©2021. All Rights Reserved. Supply Chain Adviser LLC.
1. The Latest Sustainability Trends & Current States Around The World
Latest Trends & Current States
• The ethical & moral calling to address &
response to problems in Sustainability &
Social Responsibility
• Shift in market demand: Customer
preferences, Stakeholder, Investor’s Behavior
• Opportunities in Digitization &
Technology: Growth & Survival
• Pressures from policies, regulations, &
governance: Requirements
2. How Do Organizations Generate Value From
Sustainability Programs?
3. What Can You & Your Organizations Do?
4. Pathway to Sustainability
©2021. All Rights Reserved. Supply Chain Adviser LLC.
1. The Latest Sustainability Trends &
Current States Around The World
Latest Trends & Current States
• The ethical & moral calling to address &
response to problems in Sustainability &
Social Responsibility
• Shift in market demand: Customer
preferences, Stakeholder, Investor’s
Behavior
• Opportunities in Digitization &
Technology: Growth & Survival
• Pressures from policies, regulations, &
governance: Requirements
2. How Do Organizations Generate Value
From Sustainability Programs?
3. What Can You & Your Organizations Do?
4. Pathway to Sustainability
137 Countries pledge to Carbon Neutral
163 of Fortune Global
500 Companies of 23
Countries with formal
climate target
©2021. All Rights Reserved. Supply Chain Adviser LLC.
• The Latest Sustainability Trends & Current States Around The World
2. How Do Organizations Generate Value From Sustainability Programs?
• Capture market demand & adapting or creating new business models: Sustainable & Profitable
3. What Can You & Your Organizations Do?
4. Pathway to Sustainability
“In 2014, the technology company Dell entered into an agreement with the supplier Newlight Technologies—an
innovative plastics manufacturer from California, note about Dell’s new supplier was that the plastic it delivered to Dell
was certified carbon-negative.
In order to produce the plastic, Newlight captures CO2 from the chimneys of other companies and uses it as the most
important input in its plastic production. In other words, the more plastic Newlight produces, the larger the reduction
of CO2 in the atmosphere. In addition, the plastic produced by Newlight is biodegradable. Newlight can deliver this
product because it has developed technology that makes it possible to capture greenhouse gases in the air and turn them
into biodegradable plastic.
Newlight plastic is competitive in quality and price, and it is used for everything from plastic chairs to the bags in which
Dell packages its lap- tops. is implies that Newlight not only contributes to solve the climate problem, it has also
established a business model that could potentially provide it with clients both upstream and downstream in its value
chain.
And in 2016, Newlight entered into a comprehensive partnership with IKEA, through which Newlight will supply
IKEA with carbon-neg- ative plastic for use in its products. ” (S. Jørgensen, L. J. T. Pedersen, 2018)
1. The Latest Sustainability Trends & Current States Around The World
©2021. All Rights Reserved. Supply Chain Adviser LLC.
1. The Latest Sustainability Trends & Current States Around The World
2. How Do Organizations Generate Value From
Sustainability Programs?
• Capture market demand & adapting or creating
new business models: Sustainable & Profitable
3. What Can You & Your Organizations Do?
4. Pathway to Sustainability
22% of 2,421 respondents say their
companies realized modest or
significant value from sustainability
in the past 5 years.
• Clear Strategic, Purposeful Intent, Priorities, Targets,
& KPIs
• Ingrain in the culture: Meeting Customer expectation
through products & services, Employee Engagement,
Value-chain collaboration
Picture Courtesy: McKinsey
©2021. All Rights Reserved. Supply Chain Adviser LLC.
1. The Latest Sustainability Trends & Current States Around The World
2. How Do Organizations Generate Value
From Sustainability Programs?
• Capture market demand & adapting or
creating new business models: Sustainable
& Profitable
3. What Can You & Your Organizations Do?
4. Pathway to Sustainability
• Clear Strategic, Purposeful Intent, Priorities,
Targets, & KPIs
• Ingrain in the culture: Meeting Customer
expectation through products & services, Employee
Engagement, Value-chain collaboration
Picture Courtesy: McKinsey
©2021. All Rights Reserved. Supply Chain Adviser LLC.
1. The Latest Sustainability Trends & Current
States Around The World
2. How Do Organizations Generate Value From
Sustainability Programs?
• Capture market demand & adapting or creating
new business models: Sustainable & Profitable
3. What Can You & Your Organizations Do?
4. Pathway to Sustainability
• Clear Strategic, Purposeful Intent, Priorities,
Targets, & KPIs
• Ingrain in the culture: Meeting Customer
expectation through products & services,
Employee Engagement, Value-chain
collaboration
Picture Courtesy: McKinsey
©2021. All Rights Reserved. Supply Chain Adviser LLC.
• Know your VISION & PURPOSE in
Sustainability & Social Responsibility
• Define what “SUSTAINABILITY” &
“SUPPLY CHAIN Sustainability” means
to you & your organization & Translate
it into Business Operations, Set
STRATEGIES
• Set goals, target, plans, resources,
measurements (feedback & adjustment)
& Evaluate current status & gap analysis
• Create ROADMAP & Tracking progress
3. What Can You & Your
Organizations Do?
2. How Do Organizations Generate Value From
Sustainability Programs?
1. The Latest Sustainability Trends & Current
States Around The World
4. Pathway to Sustainability
The UN Global Compact reinforced the term
“Supply Chain Sustainability: the management
of environmental of good governance practices,
throughout the lifecycles of goods & services.”
MIT Center of Transportation & Logistics:
“Supply Chain Sustainability: the management
of environmental & social impacts within &
across networks consisting of suppliers,
manufacturers, distributors & customers in line
with UN Sustainable Development Goals.”
The term “sustainability” coined in Germany
means “sustained yield, handbook of forestry
1713, referring to practice of never harvesting
more than the forest can regenerate.
©2021. All Rights Reserved. Supply Chain Adviser LLC.
• Know your VISION & PURPOSE in
Sustainability & Social Responsibility
• Define what “SUSTAINABILITY” &
“SUPPLY CHAIN Sustainability” means
to you & your organization & Translate
it into Business Operations, Set
STRATEGIES
• Set goals, target, plans, resources,
measurements (feedback & adjustment)
& Evaluate current status & gap analysis
• Create ROADMAP & Tracking progress
3. What Can You & Your
Organizations Do?
2. How Do Organizations
Generate Value From
Sustainability
Programs?
1. The Latest
Sustainability Trends
& Current States
Around The World
4. Pathway to
Sustainability ©2021. All Rights Reserved. Supply Chain Adviser LLC.
1. The Latest Sustainability Trends & Current States Around The World
2. How Do Organizations Generate Value From Sustainability Programs?
4. Pathway to Sustainability
3. What Can You & Your Organizations Do?
Picture Courtesy: S. Jørgensen & L. J. T. Pedersen 2018
Individual
Ø Sustainability & Social Responsibility are everyone’s business –
Jadav Moli Payeng, the Forest Man, a Farmer in India planted
1,360 acres of forest over decades. Yacouba Sawadogo, Farmer in
Africa stopped desertification.
Restart Sustainable Business Model
Social,
Environmental,&
Financial Objectives
Based on Circular
Economy. Designing
the way resources are
acquired, processed,
used & reused.
Organization
Ø Decision Between Cost to Transform vs. Cost of Not
to Transform
Ø Set Vision & Purpose, Strategies
Ø Translate them into objectives, goals, targets, plans,
resources (recommended tool of Restart Sustainable
Business Model), measurements (feedback &
adjustment) & Evaluate current status & gap analysis
Ø Create ROADMAP & Tracking progress
©2021. All Rights Reserved. Supply Chain Adviser LLC.
“Sustainability Trends That Will Make
The Biggest Impact On Your Organization”
1. The Latest Sustainability Trends & Current States Around The World
2. How Do Organizations Generate Value From Sustainability Programs?
3. What Can You & Your Organizations Do?
4. Pathway to Sustainability
O ne Page
Summary
E: jit.hinchman@supplychainadviser.com
P: +1.317.779.2595
Supply Chain Adviser LLC
Specialized in Research & Consulting
Where the Strategy & Execution Orchestrate
THANK YOU!
Jumpstart Success in Your Supply Chain: Sustainability Trends That Will Make the Biggest Impact on Your Organization

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Jumpstart Success in Your Supply Chain: Sustainability Trends That Will Make the Biggest Impact on Your Organization

  • 1.
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  • 5. AGENDA 1. The Latest Sustainability Trends & Current States Around The World 2. How Do Organizations Generate Value From Sustainability Programs? 3. What Can You & Your Organizations Do? 4. Pathway to Sustainability Jumpstart Success in Your Supply Chain “Sustainability Trends That Will Make The Biggest Impact On Your Organization” Jit Hinchman, M.Eng, M.Sc, CSCP, CLSS Founder & President of Supply Chain Adviser™ LLC. Sustainable Supply Chain Global Ambassador ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 6. The Power of Responsibility & Opportunity “In 1994, Ray Anderson, the founder & CEO of Interface, was asked to comment on the company’s environmental vision at an internal work meeting. Interface was a large player in the international carpet market, & the reason for the meeting was that the company’s customers & collaborative partners had begun to question how its carpets were manufactured & what influence Interface had on society & the environment (Anderson 2002). It suddenly occurred to him that the company he had been running for 21 years not only lacked an environmental vision but rather the company was an environmental culprit. is was a revelation to Anderson, & it led to his vision of reducing Interface’s ecological footprint to zero by 2020 (“Mission Zero”). is required an entirely new way of thinking and a completely new business model to turn the company around from being an environmental villain to becoming a leader in sustainability (Anderson 2010). To achieve this ambitious objective, the company needed to develop new products & had to turn its processes upside down to find new ways of designing, manufacturing & distributing its carpets. When carpet tiles were destroyed or worn down, Interface replaced them and collected the old tiles for reuse in the production of new carpets. In this way, Interface could sell more services to its customers, while at the same time driving down the cost of input factors for its carpets.” (S. Jørgensen, L. J. T. Pedersen, 2018) In addition, it aimed to find alternative sources of energy. Perhaps most fundamentally, Interface changed its business model from one based on selling carpets to end users to a business model based on a so- called product-service system. is implied that it leased carpets to its customers, in a way that the company had the responsibility for maintenance, cleaning and so on. ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 7. 2. How Do Organizations Generate Value From Sustainability Programs? 3. What Can You & Your Organizations Do? 4. Pathway to Sustainability 1. The Latest Sustainability Trends & Current States Around The World ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 8. 1. The Latest Sustainability Trends & Current States Around The World • Latest Trends & Current States • The ethical & moral calling to address & response to problems in Sustainability & Social Responsibility • Shift in market demand: Customer preferences, Stakeholder, Investor’s Behavior • Opportunities in Digitization & Technology: Growth & Survival • Pressures from policies, regulations, & governance: Requirements 2. How Do Organizations Generate Value From Sustainability Programs? 3. What Can You & Your Organizations Do? 4. Pathway to Sustainability ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 9. 1. The Latest Sustainability Trends & Current States Around The World Latest Trends & Current States • The ethical & moral calling to address & response to problems in Sustainability & Social Responsibility • Shift in market demand: Customer preferences, Stakeholder, Investor’s Behavior • Opportunities in Digitization & Technology: Growth & Survival • Pressures from policies, regulations, & governance: Requirements 2. How Do Organizations Generate Value From Sustainability Programs? 3. What Can You & Your Organizations Do? 4. Pathway to Sustainability ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 10. 1. The Latest Sustainability Trends & Current States Around The World Latest Trends & Current States • The ethical & moral calling to address & response to problems in Sustainability & Social Responsibility • Shift in market demand: Customer preferences, Stakeholder, Investor’s Behavior • Opportunities in Digitization & Technology: Growth & Survival • Pressures from policies, regulations, & governance: Requirements 2. How Do Organizations Generate Value From Sustainability Programs? 3. What Can You & Your Organizations Do? 4. Pathway to Sustainability 137 Countries pledge to Carbon Neutral 163 of Fortune Global 500 Companies of 23 Countries with formal climate target ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 11. • The Latest Sustainability Trends & Current States Around The World 2. How Do Organizations Generate Value From Sustainability Programs? • Capture market demand & adapting or creating new business models: Sustainable & Profitable 3. What Can You & Your Organizations Do? 4. Pathway to Sustainability “In 2014, the technology company Dell entered into an agreement with the supplier Newlight Technologies—an innovative plastics manufacturer from California, note about Dell’s new supplier was that the plastic it delivered to Dell was certified carbon-negative. In order to produce the plastic, Newlight captures CO2 from the chimneys of other companies and uses it as the most important input in its plastic production. In other words, the more plastic Newlight produces, the larger the reduction of CO2 in the atmosphere. In addition, the plastic produced by Newlight is biodegradable. Newlight can deliver this product because it has developed technology that makes it possible to capture greenhouse gases in the air and turn them into biodegradable plastic. Newlight plastic is competitive in quality and price, and it is used for everything from plastic chairs to the bags in which Dell packages its lap- tops. is implies that Newlight not only contributes to solve the climate problem, it has also established a business model that could potentially provide it with clients both upstream and downstream in its value chain. And in 2016, Newlight entered into a comprehensive partnership with IKEA, through which Newlight will supply IKEA with carbon-neg- ative plastic for use in its products. ” (S. Jørgensen, L. J. T. Pedersen, 2018) 1. The Latest Sustainability Trends & Current States Around The World ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 12. 1. The Latest Sustainability Trends & Current States Around The World 2. How Do Organizations Generate Value From Sustainability Programs? • Capture market demand & adapting or creating new business models: Sustainable & Profitable 3. What Can You & Your Organizations Do? 4. Pathway to Sustainability 22% of 2,421 respondents say their companies realized modest or significant value from sustainability in the past 5 years. • Clear Strategic, Purposeful Intent, Priorities, Targets, & KPIs • Ingrain in the culture: Meeting Customer expectation through products & services, Employee Engagement, Value-chain collaboration Picture Courtesy: McKinsey ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 13. 1. The Latest Sustainability Trends & Current States Around The World 2. How Do Organizations Generate Value From Sustainability Programs? • Capture market demand & adapting or creating new business models: Sustainable & Profitable 3. What Can You & Your Organizations Do? 4. Pathway to Sustainability • Clear Strategic, Purposeful Intent, Priorities, Targets, & KPIs • Ingrain in the culture: Meeting Customer expectation through products & services, Employee Engagement, Value-chain collaboration Picture Courtesy: McKinsey ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 14. 1. The Latest Sustainability Trends & Current States Around The World 2. How Do Organizations Generate Value From Sustainability Programs? • Capture market demand & adapting or creating new business models: Sustainable & Profitable 3. What Can You & Your Organizations Do? 4. Pathway to Sustainability • Clear Strategic, Purposeful Intent, Priorities, Targets, & KPIs • Ingrain in the culture: Meeting Customer expectation through products & services, Employee Engagement, Value-chain collaboration Picture Courtesy: McKinsey ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 15. • Know your VISION & PURPOSE in Sustainability & Social Responsibility • Define what “SUSTAINABILITY” & “SUPPLY CHAIN Sustainability” means to you & your organization & Translate it into Business Operations, Set STRATEGIES • Set goals, target, plans, resources, measurements (feedback & adjustment) & Evaluate current status & gap analysis • Create ROADMAP & Tracking progress 3. What Can You & Your Organizations Do? 2. How Do Organizations Generate Value From Sustainability Programs? 1. The Latest Sustainability Trends & Current States Around The World 4. Pathway to Sustainability The UN Global Compact reinforced the term “Supply Chain Sustainability: the management of environmental of good governance practices, throughout the lifecycles of goods & services.” MIT Center of Transportation & Logistics: “Supply Chain Sustainability: the management of environmental & social impacts within & across networks consisting of suppliers, manufacturers, distributors & customers in line with UN Sustainable Development Goals.” The term “sustainability” coined in Germany means “sustained yield, handbook of forestry 1713, referring to practice of never harvesting more than the forest can regenerate. ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 16. • Know your VISION & PURPOSE in Sustainability & Social Responsibility • Define what “SUSTAINABILITY” & “SUPPLY CHAIN Sustainability” means to you & your organization & Translate it into Business Operations, Set STRATEGIES • Set goals, target, plans, resources, measurements (feedback & adjustment) & Evaluate current status & gap analysis • Create ROADMAP & Tracking progress 3. What Can You & Your Organizations Do? 2. How Do Organizations Generate Value From Sustainability Programs? 1. The Latest Sustainability Trends & Current States Around The World 4. Pathway to Sustainability ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 17. 1. The Latest Sustainability Trends & Current States Around The World 2. How Do Organizations Generate Value From Sustainability Programs? 4. Pathway to Sustainability 3. What Can You & Your Organizations Do? Picture Courtesy: S. Jørgensen & L. J. T. Pedersen 2018 Individual Ø Sustainability & Social Responsibility are everyone’s business – Jadav Moli Payeng, the Forest Man, a Farmer in India planted 1,360 acres of forest over decades. Yacouba Sawadogo, Farmer in Africa stopped desertification. Restart Sustainable Business Model Social, Environmental,& Financial Objectives Based on Circular Economy. Designing the way resources are acquired, processed, used & reused. Organization Ø Decision Between Cost to Transform vs. Cost of Not to Transform Ø Set Vision & Purpose, Strategies Ø Translate them into objectives, goals, targets, plans, resources (recommended tool of Restart Sustainable Business Model), measurements (feedback & adjustment) & Evaluate current status & gap analysis Ø Create ROADMAP & Tracking progress ©2021. All Rights Reserved. Supply Chain Adviser LLC.
  • 18. “Sustainability Trends That Will Make The Biggest Impact On Your Organization” 1. The Latest Sustainability Trends & Current States Around The World 2. How Do Organizations Generate Value From Sustainability Programs? 3. What Can You & Your Organizations Do? 4. Pathway to Sustainability O ne Page Summary E: jit.hinchman@supplychainadviser.com P: +1.317.779.2595 Supply Chain Adviser LLC Specialized in Research & Consulting Where the Strategy & Execution Orchestrate THANK YOU!