"Sustainability Trends within Supply Chain Management"
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Consumers today are very concerned about the impact products; services and the companies who produce them have on the greater world. Commercial buyers and end user consumers are looking for independent third party assurances regarding the health and safety of a specific product as well as detailed information on the supply chain that created that product. This session will focus on addressing trends within sustainable supply chain management, third party reporting/certification and environmental, health product declarations.
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"Sustainability Trends within Supply Chain Management"
- 1. PRESENTATION TITLE Presented by: Lisa Geason-Bauer – Chief Communications & Sustainability Officer Box Latch™ Products Lisa@boxlatch.com © 2017 MHI® . All rights reserved. “Sustainability Trends within Supply Chain Management”
- 2. Can someone define for me what a “Sustainable Supply Chain is?” What are characteristics of a sustainable supply chain?
- 3. Sustainable supply chain management involves integrating environmentally and financially viable practices into the complete supply chain lifecycle, from product design and development, to material selection, (including raw material extraction or agricultural production), manufacturing, packaging, transportation, warehousing, distribution, consumption, return and disposal. Environmentally sustainable supply chain management and practices can assist organizations in not only reducing their total carbon footprint, but also in optimizing their end-to-end operations to achieve greater cost savings and profitability. All supply chains can be optimized using sustainable practices.
- 4. Sustainability in the supply chain encapsulates a number of different priorities: • Environmental stewardship • Conservation of resources • Reduction of carbon footprint • Financial savings and viability • Social responsibility Supply chain sustainability practices, in order to succeed, must deliver improved environmental performance within a financially viable operating construct. http://www.sustainable-scf.org/
- 5. Why sustainability within the supply chain ? "Even though we were the first manufacturer in America to offset 100% of the CO2 emissions from our manufacturing plants, these incredible offsets amounted to a rounding error in terms of our total carbon footprint. We realized that our supply chain — what’s coming in and going out of our plant — represents 80% to 90% of our total carbon footprint. So despite the great things we did in our plant, unless we tackled our supply chain’s carbon footprint, we were nowhere." —Gary Hirshberg, President and CEO, Stonyfield Farms
- 6. Lisa’s definition for sustainability Sustainability can only be accomplished by taking a holistic systems wide approach to management of the business. (i.e. successful initiatives do not occur in a silo, they require buy in at all levels within an organization) http://learningforsustainability.net/systems-thinking/
- 7. 2017 Trends in Supply Chain Management (1) Sustainability (2) Emphasis on Ethics & Increased Transparency (3) Greater collaboration between suppliers and manufacturers (i.e. more complex, interconnected) (4) Rise of information management, procurement (big data, IoT) (5) Digital Supply Chains and real-time data
- 8. Ever feel like life is speeding up? What general trends do you see happening in the world? In your business?
- 9. Major Business Trends…... (1) Changing culture/face of workplace (2) UN’s Sustainable Development Goals & impacts on business/operations (3) Globally connected w/ “on demand” info.
- 10. Employment & How “we” work today….. Changing workforce – Culturally diversity workplace – Rise of the Gig economy – Rise of social media & impacts on company reputation – Worker shortage (People & Skills Gap) – More Millennials in workplace
- 11. UN’s newly adopted Sustainable Development Goals for 2030
- 12. “The new agenda is a promise by leaders to all people everywhere. It is a universal, integrated, and transformative vision for a better world…. It is an agenda for shared prosperity, peace, and partnership [that] conveys the urgency of climate action [and] is rooted in gender equality and respect for the rights of all. Above all, it pledges to leave no one behind.” -(Former) United Nations Secretary-General Ban Ki-moon
- 15. Sustainable Development Goals Compass (for business) “The SDG Compass explains how the SDGs affect your business – offering you the tools and knowledge to put sustainability at the heart of your strategy business.” http://sdgcompass.org/
- 16. Increased Transparency in supply chain • Product transparency ( LCA - EPD & HPD, C2C) • Supplier surveys • Third Party Reporting (ISO – CDP – GRI – B Corp ) • Chain of custody independent third party eco- labels (FSC – LEED )
- 17. Life-cycle assessment (LCA, also known as life-cycle analysis, eco-balance, and cradle-to-grave analysis)[1] is a technique to assess environmental impacts associated with all the stages of a product's life from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling. Wikipedia Image from: https://www.dsm.com/markets/electrical-electronics/en_US/science/bright-science/life-cycle-assessment.html
- 18. What is an EPD®? An EPD® (Environmental Product Declaration) is an independently verified and registered document that communicates transparent and comparable information about the life-cycle environmental impact of products. Having an EPD® for a product does not imply that the declared product is environmentally superior to alternatives — it is simply a transparent declaration of the life-cycle environmental impact. The EPD® is a registered trademark within the EU. http://www.environdec.com/en/What-is-an-EPD/
- 19. Example
- 20. Example
- 21. Cradle-to-Cradle (C2C) C2C includes aspects from both the environmental and social sides of sustainability. It takes a qualitative approach, using a top-down perspective. It starts with a vision of what a sustainable world looks like and what role a product can fulfill in this world. This means that the whole product system can be re-imagined to fit the vision. http://www.c2ccertified.org/
- 22. A Supplier Survey is used by a company to collect information from current and/or prospective suppliers to gage whether or not they satisfy specific social and environmental criteria that are meaningful to that company. B Labs (B Corporation™) Guide to Conducting a Supplier Survey http://bimpactassessment.net/sites/all/themes/bcorp_impact/pdfs /B%20Resources%20- %20Conducting%20a%20Supplier%20Survey.pdf
- 23. International Organizations for Standardization (ISO) ISO is an independent, non-governmental international organization with a membership of 164 national standards bodies. Through its members, it brings together experts to share knowledge and develop voluntary, consensus-based, market relevant International Standards that support innovation and provide solutions to global challenges. ISO 5001 – energy management ISO 14001 – environmental management system ISO 9001 – quality ISO 26000 – social responsibility https://www.iso.org/
- 24. Additional Programs: B Corporation™ https://www.bcorporation.net/ GRI https://www.globalreporting.org/
- 26. Use independent product labels/ certifications to help your products legitimately highlight their environmental/social benefits. Voluntary Labels: Forest Stewardship Council certified (FSC), Green Seal, Recycled Content, Environmental Product Declaration Mandatory Labels: Declarations of content Energy Guide Label
- 27. Looking to the future….. • Hyper- transparency (within supply chain, operations and overall how your business does business) • Rise in number of certifications that are going to be required for you to do business in different parts of the world, or sectors etc… • Expectation that your business is going to help solve the worlds problems (i.e. corporate adoption of SDG’s) = increases in “mission based organizations” • Figure out how the circular economy can benefit your operation
- 28. Circular economy thinking •alternative to “take, make, dispose” economic models • regenerative by design • aims to keep products, components & materials at their highest utility & value at all times • C2C can design products for this system www.ellenmacarthurfoundation.org /circular-economy
- 29. Example of a Circular Economy solution Box Latch Product in Action – VF Corporation Video
- 31. Box Latch Mission: Change the way the world closes and Re-Uses boxes. Develop the products and tools to help the world understand that Re- Use, not recycling, is the most effective long-term solution to corrugate waste management.
- 32. You want to see in the world!
- 33. Resources – Trends in Supply Chain (1) Thomasnet’s 2017 Trends for Supply Chains article :http://blog.thomasnet.com/six-supply-chain-trends-to-watch- out-for-in-2017 (2) PLS Logistic’s Top 6 Supply Chain Trends to Watch in 2017 http://info.plslogistics.com/blog/the-top-6-supply-chain-trends- to-watch-in-2017
- 34. Resources – SDG’s & Business Article : http://www.triplepundit.com/2016/04/paris-agreement- means-business/ Business Coalition in support of the SDG’s : http://www.wemeanbusinesscoalition.org/about
- 35. Resources – Workforce Deloitte’s Millennial Survey 2016 https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-millenial-survey-2016-exec-summary.pdf Forbes Employee Engagement what & why? http://www.forbes.com/sites/kevinkruse/2012/06/22/employee-engagement-what-and-why/#36f9d7534629 Cone Communications Employee Engagement Article June 2016 http://www.conecomm.com/research-blog/2016-employee-engagement-study Business Case for Employee Volunteer Programs https://www.charities.org/news/business-case-employee-volunteer-skills-giving-programs Gig Economy article https://www.fastcompany.com/3049532/the-future-of-work/heres-why-the-freelancer-economy-is-on-the-rise Harvard Business Review Article –Employer Branding https://hbr.org/2015/05/ceos-need-to-pay-attention-to-employer-branding 7 Trends in Employee Engagement https://www.15five.com/blog/7-employee-engagement-trends-2016/
- 36. Resources – Life Cycle Assessment Inpro Corporation – images of their EPD and HPD’s website : https://www.inprocorp.com/our- obsessions/sustainability Understanding the difference between LCA & C2C article https://www.pre-sustainability.com/lca-and-c2c-friends-or-foes
- 37. For More Information: Speaker email: Lisa@Boxlatch.com Website: www.boxlatch.com Or visit ProMat Booth # N1114 {in Sustainable Facility Solutions Theater - North Hall}
- 38. Q&A
Editor's Notes
- Let’s begin with some audience interaction…..
- The definition that I really like comes from the sustainable supply chain foundation….. Please note that we are also talking about applying a systems perspective
- I like this definition because it takes into account a triple bottom line perspective on supply chain sustainability. Meaning that more then just environmental factors are taken into account…..i.e. Human/social factors as well as economic. (i.e People, planet, profit).
- Systems thinking is an approach to integration that is based on the belief that the component parts of a system will act differently when isolated from the system’s environment or other parts of the system. Standing in contrast to positivist and reductionist thinking, systems thinking sets out to view systems in a holistic manner. Consistent with systems philosophy, systems thinking concerns an understanding of a system by examining the linkages and interactions between the elements that comprise the whole of the system. When you encounter situations which are complex and messy, then systems thinking can help you understand the situation systemically. This helps us to see the big picture – from which we may identify multiple leverage points that can be addressed to support constructive change. It also helps us see the connectivity between elements in the situation, so as to support joined-up actions. Triple bottom line thinking – 3 legs to the sustainability stool – economic viability (traditional) + corporate social responsibility (human) + environmental stewardship (planet) – People, planet and profit . This definition then allows us to take a holistic approach to business decision making….i.e. We run all decisions through the 3 aformentioned lenses (for all deptartments within the org. – HR, marketing, operations, logistics, supply chain, transporation, etc...)
- See resources slide it contains links to the two articles I pulled these trends from Thomasnet and PLS Logistics blogs When you embrace a systems perspective for sustainability you will notice that each of the items listed above can be included as part of your “Sustainable Supply Chain solution”
- Audience – What is this a picture of ? Planet moving quicker? Do you ever feel that your life is speeding up, sometime out of control? Lots of change is happening in the world and in our businesses….. What chages do you see happening? – brief discussion about what you see happening in your work place
- We will do a deep dive into these trends and unpack what they mean for your operation, supply chain.
- Diversity will only continue to increase in the workplace as the US becomes more diverse According to the US census bureau - A total of 800,000 Latinos turn 18 each year—one every 30 seconds or more than 66,000 individuals per month, beginning in 2016 -Between 2014 and 2060, the Latino population is expected to increase 115 percent to some 119 million people; Latinos will be 29 percent of the U.S. population. FastCompany Article about the “freelance or Gig economy” By 2020, a separate study estimates that more than 40% of the American workforce, or 60 million people, will be independent workers—freelancers, contractors, and temporary employees. According to a recent Harvard Business Review Article - CEO’s need to pay more attention to how their company is branded from an employee’s point of view. “Times have changed. The rise of social media has made companies a great deal more transparent. People are far more likely to trust a company based on what its employees have to say than on its recruitment advertising. This means that talent attraction relies far more heavily on employee engagement and advocacy.”
- On September 25, 2015, the 193 countries of the UN General Assembly adopted the 2030 Sustainable Development Goals
- Increased transparency can show up in your business via several different channels. https://www.pre-sustainability.com/lca-and-c2c-friends-or-foes
- LCA focuses on the environmental side of sustainability. It follows a quantitative approach, where the whole life cycle of a product is investigated and all used substances and materials are defined. This is a bottom-up approach, where the collected data is used to calculate the potential environmental impact of the whole product life cycle. https://www.pre-sustainability.com/lca-and-c2c-friends-or-foes
- The relevant standard for Environmental Product Declarations is ISO 14025, where they are referred to as "type III environmental declarations". A type III environmental declaration is created and registered in the framework of a programme, such as the International EPD® System. An EPD® may be used for many different applications, including green public procurement (GPP) and building assessment schemes. The concept of type III environmental declarations was developed to primarily be used in business-to-business communication, but their use in business-to-consumer communication is not precluded by the standards.
- Many world leading brands—and some innovative companies you have never heard of—are using the principles of the Cradle to Cradle Certified™ Products Program to make products in fundamentally better ways. The Cradle to Cradle Products Innovation Institute, a non-profit organization, educates and empowers manufacturers of consumer products to become a positive force for society and the environment, helping to bring about a new industrial revolution. The Institute administers the publicly available Cradle to Cradle Certified™ Product Standard which provides designers and manufacturers with criteria and requirements for continually improving what products are made of and how they are made. The Cradle to Cradle Certified™ mark provides consumers, regulators, employees, and industry peers with a clear, visible, and tangible validation of a manufacturer’s ongoing commitment to sustainability and to their communities.
- In some cases this could be a purchasers “scorecard”
- Today there are 439 Eco- labels http://www.ecolabelindex.com/ecolabels/
- Second part of our mission ….. Read what it says on the screen and then futher explain below. “Today's linear ‘take, make, dispose’ economic model relies on large quantities of cheap, easily accessible materials and energy, and is a model that is reaching its physical limits. A circular economy is an attractive and viable alternative that businesses have already started exploring today. A circular economy is restorative and regenerative by design, and aims to keep products, components, and materials at their highest utility and value at all times. The concept distinguishes between technical and biological cycles.” From the Ellen MacArthur Foundation website https://www.ellenmacarthurfoundation.org/circular-economy/overview/concept http://www.wrap.org.uk/about-us/about/wrap-and-circular-economy
- At BLP we are striving to be that company of the future.....our company is mission based....and we are striving o Read mission on the slide and then talk about…. We the leadership team at Box Latch™ Products believe that in order to be successful in the future, our business and really all business needs to be able to adapt to the changing world. The rate of change or the speed at which change happens now, is very quick compared to 10 or 20 years ago. When looking outside of our company and planning for the future, we have realized that with 95% of the market being outside of the US, it is really important for us to focus our business decisions actions around global sustainability themes if we want to group our business. Themes that are very present today and that have had a direct impact on our business include: (A) Global adoption of sustainability strategies/ practices by fortune 1000 companies (Among companies in the global sample, the increase was 1 percentage point, with 45 percent of S&P Global 1200 companies issuing reports that reference GRI guidelines. ) 2015 report - https://www2.deloitte.com/content/dam/Deloitte/us/Documents/center-for-corporate-governance/us-aers-ccg-sustainability-practices-report-the-conference-board-050815.pdf (B) Adoption of the United Nations Sustainable Development Goals….after COP22 and the majority of stakeholders signing on to the Paris Accord, we now have a frame work and benchmark points for busines to use/report on regarding the 2030 agenda for sustainable development .... (http://www.un.org/sustainabledevelopment/ )
- As we look to the future, Box Latch™ Products hopes to continue to lead by example….following our mission. We are choosing to “B the Change we want to see in the world!” BLP’s is one of 2000 Certified B Corp’s operating in the world. What a B Corp is (in case someone asks) Certified B Corporation are for-profit companies certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. Today, there is a growing community of more than 1,600 Certified B Corps from 42 countries and over 120 industries working together toward 1 unifying goal: to redefine success in business. We did this for market differentiation (1) target market other B Corps (Patagonia, Ben and Jerry’s etc.) and (2) past year 954 EU businesses have become Certified B Corp’s