Sustainable Procurement News
Latest news, trends, ideas on Sustainable / Responsible Procurement and Green Supply Chain from EcoVadis
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How a little-noticed factory fire disrupted the global electronics supply

How a little-noticed factory fire disrupted the global electronics supply | Sustainable Procurement News | Scoop.it
This item has been corrected. It was an industrial mishap barely noticed outside the arcane world of electronics supply chains. On Sept. 4, a fire engulfed a substantial portion of an SK Hynix production plant in Wuxi, China.
EcoVadis's insight:

Another example of how poor EHS practices can lead to major supply chain disruption and huge financial impacts on supply chain

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Int'l retailer C&A launches fire safety audit in Bangladesh

Int'l retailer C&A launches fire safety audit in Bangladesh | Sustainable Procurement News | Scoop.it

The international Dutch chain of fashion retailer C&A has launched an in-depth fire safety audit at all its suppliers in Bangladesh after the country's worst-ever industrial blaze at Tazreen Fashions.

EcoVadis's insight:

In response to the Tazreen tragedy, international buyers such as C&A are now reinforcing their supply health and safety audit standards...

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Wal-Mart Toughens Fire Safety Rules for Suppliers

Wal-Mart Toughens Fire Safety Rules for Suppliers | Sustainable Procurement News | Scoop.it

Facing criticism for selling garments made at a Bangladesh factory where 112 workers died in a fire last November, Wal-Mart Stores told its worldwide suppliers Tuesday that it was adopting tougher rules on fire safety at its contractors and would have “zero tolerance” for suppliers that used unauthorized subcontractors.

EcoVadis's insight:

As shown from this New York Times article, Walmart has subsequently thoughen its ethical sourcing standards  after the November 2012 tragedy at Tazreen factory.

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Bangladesh Fire Exposes Safety Gap in Supply Chain

Bangladesh Fire Exposes Safety Gap in Supply Chain | Sustainable Procurement News | Scoop.it
A blaze that killed 112 workers in Bangladesh last month exposed a disconnect among retailers like Sears and Walmart, the monitoring system to protect workers and the factories filling the orders.
EcoVadis's insight:

Beyond the abominable tragedy, this article from the New York times also highlights key issues such as the opacity in sub-contracting networks, the lack of corrective actions and follow-ups once non-conformities are uncovered during audits, and of course the tragic lack of investment in what does not directly impact the bottom line...

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Walmart Names Names: Its List of 240+ Banned Factories in Bangladesh

Walmart Names Names: Its List of 240+ Banned Factories in Bangladesh | Sustainable Procurement News | Scoop.it
After announcing it will not join an industry-wide accord on factory safety in Bangladesh, the world's biggest retailer announced its own safety initiatives - and a list of factories banned from its supply chain...
EcoVadis's insight:

After H&M first move to disclose its factory list, following the Tazreen incident, Walmart is now releasing the list of factories it considered as unsafe and makes it available for all stakeholders.

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EcoVadis's comment, June 1, 2013 8:27 PM
Our experience at EcoVadis, shows that yes, it is possible to have such impact. However, our general approach would rather focus on prior engagement (not blacklisting). For example, we offer our clients to set Corrective Action Plans with their suppliers. This said, regarding the Rana Plaza incident, yes, filtering and disengagement should have remained a priority.
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Wal-Mart's sourcing guidelines get tepid reception

Wal-Mart's sourcing guidelines get tepid reception | Sustainable Procurement News | Scoop.it
Updated sourcing guidelines released this week by Wal-Mart have received a tepid reception at best, with industry watchers warning they are sceptical as to whether the new rules will be fully enforced.
EcoVadis's insight:

Despite doubts raised over Walmart's actual enforcement of sustainable procurement strategy, it recently stated a zero tolerance policy for any unauthorised subcontracting of its merchandise starting from 1 March 2013.  After the Tazreen incident, will Walmart indeed implement stricter rules and how is it possible for a company of Walmart size and scope of operations?  Here is an other related article from the Huffington Post.

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From Triangle to Tazreen: A Century of Lessons

From Triangle to Tazreen: A Century of Lessons | Sustainable Procurement News | Scoop.it
'From Triangle to Tazreen: A Century of Lessons' blog post by Francesca Rheannon.
EcoVadis's insight:

This interesting analysis from CSR Wire about the Tazreen tragedy highlights the failed control system and lack of supply chain monitoring (Walmart was not aware Tazreen was among its supplier base), combined with financial imperative (increased orders at year end) among the main causes that account for the tragic incidents.

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