2. Today’s purpose
• Help suppliers understand
the benefits of sustainability.
• Provide tools to begin
environmental data
collection initiative.
• Comply with Summit and
their customers’
expectations.
5. What is Sustainability?
“Development that meets the needs of the present
without compromising the ability of future generations
to meet their own needs".
PLANET
Brundtland
Commission of the
PEOPLE PROFIT United Nations -
March 20, 1987
6. Benefits of Sustainability
Dr. David Shy, President of Furman University
“Sustainability is no longer the right thing to do, it is
the SMART thing to do”
Benefits of Sustainability:
• Cut risks and costs (P&G saved $600M at 200 plants)
• Increase profits
• Create competitive advantages (marketing)
• Drives innovation and efficiency
• Improves economic communities
• Benefits communities & environment
7. SUSTAINABILITY: Where did we start?
Developed a sustainability initiative in 2010
Formed a “Green Team”
ISO 14001 Certification
• Manage sustainability Efforts through use of a formal &
organized EMS
• Drive continuous improvement
Focused on Walmart Scorecard & other customer req.
• Began measuring GHGs (2010, 2011, 2012) – set goal
• Measure Water Usage & Waste Generation – set goals
Develop sustainability flyers
Get employees involved (AIM Program)
Joined NISBC – Get Bright Green Certified (2 Star)
Started recycling
Started integrating green chemistry using DfE
8. Sustainable AIM Ideas
30% of total AIM ideas
Since July 2010: Saved $84,156
EXAMPLES:
• Use paper shredding service – saves time, $,
confidentiality, & recycles ($1,323)
• Eliminate hardcopy AR Registers – go electronic –
save paper, time, storage fees ($8,440)
• Set all computer default print to B&W ($960)
• Reconfigure Production Line ($20,000)
• Print all high-quality mock up labels in-house
($4,500)
9. Green Chemistry Initiative - DfE
Rigorous review process by EPA to ensure
products are safe for environment & consumers.
http://www.epa.gov/dfe/
2011: Began with 3 products
• Dishwasher Magic (disinfectant) – DfE Certified
• Washer Magic – DfE Certified
• Disposer Care
2013:
• Complete Disposer Care
• Dry Cleaner’s Secret
2014:
• New sustainable
drain line formulations
10. Sustainable Packaging (DWM Club Pack Display)
Clamshell Tray Shrink Wrap Sleeve
CAD# Square Feet Qty/Pallet Total Sq Ft CAD# Square Feet Qty/Pallet Total Sq Ft
G7860A4 15.58 30 467.4 G8639M1 17.45 2 34.9
Layer Pad 11.61 1 11.61 G8639J2 12.87 2 25.74
TOTAL SQ FT (EACH PALLET) 479.01 TOTAL SQ FT (EACH PALLET) 60.64
TOTAL SQ FT (250 PALLETS) 119,753 TOTAL SQ FT (250 PALLETS) 15,160
The Dishwasher Magic twin pack was originally packaged in a Clamshell tray (as shown in
the first image above). By switching to the new Shrink Wrap sleeve, we saved roughly
418.37 sq. ft. of cardboard & $175 / pallet.
11. Sustainable Packaging – Washer Magic
50% reduction in packaging, while maintaining
safe formulation (2X concentrated)
13. SUMMIT SUSTAINABILITY GOALS 2013
Score 72% on Walmart scorecard by Dec. 31, 2013 (currently 41%)
Walmart TASK Target
KPI Date
3&4 Expand supplier engagement program Jul 2013
• Calculate total energy use for Summit & 8 suppliers
• Establish energy reduction and renewable energy purchasing goals to offset energy
use and publish goals on website
• 8 suppliers to Calculate 2012 GHG emissions & submit to CDP
8 Implement a program to ensure that all fragrances comply with IFRA - International Sept 2013
Fragrance Association
12 & 14 Sign up for American Cleaning Institute SmartBrief notifications to monitor the most Oct 2013
recent developments in ingredient safety research and integrate into our own
documented assessment process
13 Safe / Green Chemistry – Identify and reduce Chemicals of Concern by developing and Nov 2013
implementing formal documented risk assessment process (begin using safety and
sustainability scoring process), make general process publicly available
7 Publicly disclose ingredients through website or toll-free number (KPI 7) similar to what Dec 2013
we already to for DfE Certified products
14. SUMMIT SUSTAINABILITY GOALS 2013
DfE Certifications – 2013
1. DCS – finding a new compostable cloth
2. Disposer Care – ON HOLD
Meet public GHG, waste, and water reduction goals
Air Waste Water
Reduce normalized Reduce absolute solid Reduce absolute water
Greenhouse Gas Emissions waste to landfill 10% by usage 15% by the end of
10% by the end of 2013 the end of 2013 2013
ACTION PLAN: ACTION PLAN: ACTION PLAN:
Reduced Unipak shipments to DC by Increase recycling – Focus on modifications
½ (52 down to 26/year) new ACE Contract on Corporate sprinkler
Elimination of FL WH Reduce # of dumpster system (accounts for 52%
Conestoga will reduce / eliminate trips of PC, DC and Corp. water
facility transfers STATUS: On track to usage)
Addition of Dry Cleaner’s Secret reduce by 40% by the STATUS: On track to
(lightweight and higher cost item) – end of the year surpass goal by modifying
reduce emissions & benefit sprinkler system summer
normalization calculation(s). of 2013.
STATUS: 2012 calculations will be
available in April to evaluate progress.
16. Supply chain impacts
In general, 90% of Walmart’s
carbon emissions are
generated by suppliers.
Suppliers have a considerable
role to play in reducing
environmental impacts.
18. Reasons for supply chain sustainability
Environmental
Customer
Risk mitigation impact
requirement
reduction
Commitment
Efficiency to Innovation
responsibility
Improved Competitive Enhanced
bottom line advantage brand image
19. Walmart’s supply chain sustainability initiatives
Stage 1
Launched supply chain
program in 2009, AKA the
Walmart Supplier
Sustainability Assessment
(SSA) or 15 Questions.
20. Walmart’s supply chain sustainability initiatives
Stage 2
Implemented Walmart
Sustainability Index in 2012.
Impacts 100 product
categories
Partnered with The
Sustainability Consortium
21. New Walmart expectations 2012
Previous Walmart Scorecard was replaced by the
“Walmart Sustainability Index” Surface Cleaners
More in depth
Higher expectations for our suppliers & product
development (green chemistry)
1 shot per year
Our score will be used by buyers
to rank us against our
competitors & make decisions
22. New Walmart expectations 2012 (cont.)
Examples of new expectations:
All major suppliers complete a GHG
inventory & report to CDP
Public disclosure of our ingredients
Fragrances comply with IFRA (International Fragrance
Association)
Ingredients meet the OECD 301 biodegradability criteria
Must responsibly source palm oil
Rigorous & documented product safety process
Eliminate Materials of Concern & VOC’s from products
23. Supply chain sustainability process
Report
environmental
impacts to
Summit
Set and
implement Disclose to
reduction CDP
targets
24. Project timeline
April May June July
Training
Data collection
CDP reporting
27. Data collection tool
Developed by our partners at
Renewable Choice.
Online access; easy to use.
Each supplier will receive unique
username and password.
http://www.mosaic-client.com/summit/summit-login.html
30. Energy
What you’ll need:
• Utility bills for previous 12 months
What you’ll provide:
• Electricity used
• Steam purchased
• Natural gas/diesel/propane used
31. Other information
What you’ll need:
• Service records for HVAC system
• Fleet vehicle records
What you’ll provide:
• HVAC information
• Vehicle fuel type and total usage
• Total distance traveled by each vehicle
32. Waste
What you’ll need:
• Waste management
billing statements
• Dimensions of waste
bins, if applicable
• Details of any waste
reduction projects
35. What is CDP?
• Independent, not-for-profit
organization.
• Largest repository of corporate
climate change information in the
world.
• Companies can request that their
suppliers report to CDP.
• In 2012, more than 6,000 suppliers
worldwide were asked to respond.
37. CDP reporting process
You’ll need the details of your:
• Responsible staff
• Environmental projects
• Sustainability goals
• Climate risks & opportunities
• Governance & engagement
Enter CDP details under
the Supplier Info tab in
the data collection tool.
38. CDP reporting process
Summit’s consulting partner,
Renewable Choice, will assist you to:
• Create your online CDP account.
• Populate your CDP responses
already provided to Summit.
• Provide support during the
reporting process if you have
questions.
Sustainable development is all about ensuring a better quality of life for everyone, now and for generations to come. This can be achieved through the three strands of social equity which recognizes the needs of everyone, maintenance of stable levels of economic growth and employment, and using natural resources prudently, whilst protecting, and if possible enhancing, the environment. This can be shown diagrammatically as follows:
Supply chain processes are significant contributors to a product’s overall environmental footprint. Generally, 90% of Wal-Mart’s carbon emissions were generated from its suppliers, with only 10% generated from its own transportation, store, and staff.
Every company is simultaneously a buyer and a supplier. It is in the best interest of all companies to improve their environmental and social impacts because it can have benefits upstream and downstream within the supply chain, as well as benefitting the environment (and community) as a whole.
The supply chain presents an enormous opportunity for companies that are on the sustainability journey because of the size of environmental impact. However, there are also some direct benefits that can be derived from supply chain sustainability efforts, including:Mitigation of risk posed by climate change, natural resource scarcity, and extreme weather eventsEfficiencies gained as a result of implementing changes to reduce environmental impact (a significant number of companies that report to CDP year-over-year report these efficiencies, which, in many cases, result in bottom line savings)Innovative product design, development, and manufacturing processes that can, in some cases, result in new opportunities for companiesCompetitive advantage as a result of complying with customer requests, committing to environmental stewardship, and enhancing brand image for savvy consumers
The original 15 Questions measured supplier impacts in the areas of 1) Energy and Climate, 2) Material Efficiency, 3) Nature and Resources, and 4) People and Community. The questions were primarily qualitative in nature (e.g. have you taken steps to measure your carbon footprint?) and were intended to set suppliers on the course. Suppliers were not required to comply, but were encouraged to take leadership.
With the launch of the Sustainability Index, Walmart has taken their commitment to sustainability to the next level. The Index, which measures impacts across 100 product categories, was developed in conjunction with The Sustainability Consortium (TSC) and is administered by icix. In the Sustainability Index, Walmart uses a set of Key Performance Indicators (KPI) in the form of questions to assess and track performance towards addressing the critical sustainability issues for consumer goods. The KPIs focus on the relevant environmental and social issues for a single product category, or family of consumer goods.While suppliers are not required to respond, they are strongly encouraged. Walmart has taken steps to embed sustainability leadership into its evaluation criteria for suppliers and buyers, and has publicly stated that it intends to source 70% of its good from Index-compliant suppliers by 2017.
Sustainability is a continuous improvement process of measuring, disclosing, and reducing.
Training with all suppliers: completed by end of May, 2013Data collection period: concurrent with training; to be completed by end of June, 2013CDP Supply Chain Program reporting window: April 1-July 31, 2013
CDP is an independent, non-profit organization that houses the largest database of corporate climate change information in the world. More than 3,000 companies from around the globe report their environmental impacts to CDP on an annual basis, and the group represents the interests of 722 signatory investors with combined net assets of $87 trillion. CDP’s Supply Chain Program was launched in 2009. The program’s 62 member companies, which include Walmart and PepsiCo, among others, utilize the CDP to gather environmental impact and carbon emission data from their global suppliers. In 2012, more than 6,000 suppliers were asked to respond.
