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MEPs vote to make procurement rules more socially responsible

The European Parliament internal market committee has approved procurement reforms to ensure public authorities award contracts on the basis of the most advantageous economic, social and environmental criteria.
EcoVadis's insight:

glad to see that EU is making good steps towards integration of CSR criteria in procurement decisions. How long will it take to this tranlated into national laws?

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Sustainable Procurement
Latest news, trends, ideas on Sustainable / Responsible Procurement and Green Supply Chain
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Pool4Tool

Pool4Tool | Sustainable Procurement | Scoop.it
POOL4TOOL vereint und optimiert als weltweit einzige „All-in-One Supply Collaboration“-Plattform alle Prozesse rund um den strategischen Einkauf, die indirekte Beschaffung, das Supply Chain Management, die Produktentstehung und das Qualitätsmanagement in einer workflowbasierten Lösung. Als umfassend
EcoVadis's insight:

Come visit EcoVadis on March 8-9 at BME-eLÖSUNGSTAGE, Düsseldorf, in the Pool4Tool booth: Get your questions answered and learn how procurement teams across Europe and the US are reducing risk and driving value from their sustainable procurement programs. EcoVadis is pleased to be teaming up with Pool4Tool, and showcasing our integation with the "all in one" tool. Come see us!

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The top 10 causes of supply chain disruption loss

Top causes of business interruption loss globally, by total value (2010-2014):

1. Fire and explosion
2. Storm
3. Machinery breakdown
4. Faulty design/material/manufacturing
5. Strike/riot/vandalism
6. Cast loss (entertainment)
7. Flood
8. Collapse
9. Human error/operating error
10. Power interruption
EcoVadis's insight:

Where will your supply chain risks be this year, and how will you mitigate them?

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Greenpeace puts HP in top spot in greener-electronics guide

Greenpeace puts HP in top spot in greener-electronics guide | Sustainable Procurement | Scoop.it
HP scored well for its sustainability efforts in supply chain management, and its efforts in cleaner paper procurement and avoiding the use of conflict minerals.
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Connecting Supply Chains to Sustainable Logistics

Connecting Supply Chains to Sustainable Logistics | Sustainable Procurement | Scoop.it
. And it is expected that by 2016, more than 40 percent of new logistic application purchases will be delivered through cloud-based systems. Sharing data among competitors and supply chain partners is the next logical but challenging step in the quest for extreme efficiency
EcoVadis's insight:

Indeed it seems an "Industry vertical initiative" for sustainability is a natural fit for logistics providers...

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EcoVadis's curator insight, February 1, 1:04 PM

Indeed it seems an "Industry vertical initiative" for sustainability is a natural fit for logistics providers...

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CDP Global Supply Chain Report 2016

CDP Global Supply Chain Report 2016 | Sustainable Procurement | Scoop.it
With supply chains responsible for up to four times the GHGs of a company’s direct operations, they house sizable regulatory risk but also present ample opportunity for businesses to lower emissions.
EcoVadis's insight:

Consistent engagement in reporting drives improvement actions - almost 70% of 3rd year reporting companies start GHG reduction programs- great! As for the 50% response rate, I assume these are fairly large companies, eventually their stakeholders will demand they report their emissions - and possibly even local laws (for example if carbon pricing starts being implemented).

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The Strategic Sourceror: Balancing supply chain sustainability and risk management

The Strategic Sourceror: Balancing supply chain sustainability and risk management | Sustainable Procurement | Scoop.it
Improving sustainable practices
In its effort to reduce risks of disruptions while still managing to be sustainable and efficient in operations, some supply chain leaders are at a crossroads. This predicament is understandable since, as Ian Lefshitz, a contributor to Supply Chain Executive, worded it, "While there are obvious long-term benefits to more sustainable practices, a major challenge for corporations and procurement professionals in particular is ensuring that the entire supply chain meets established standards."
EcoVadis's insight:

Reliable indicators can help procurement teams resolve this predicament, and achieve risk reduction without sacrificing short term efficiency.

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Mondelez to focus on traceability and sustainable production: Jonathan Horrell

Mondelez to focus on traceability and sustainable production: Jonathan Horrell | Sustainable Procurement | Scoop.it
Our sustainability goals build on our heritage of leadership in sustainability and ongoing commitment to reduce greenhouse gas emissions.
In manufacturing, by the end of 2020 we will implement a science-based goal to reduce absolute manufacturing CO2 emissions by 15%. This aligns with current approaches to support the global effort to limit climate change to less than 2 degrees C. We also plan to reduce water usage by 10% in manufacturing sites where water is scarce; reduce total manufacturing waste by 20%; roughly reducing 83,000 tonnes of waste per year; and eliminate another 65,000 tonnes of packaging materials. These new goals will drive reductions in the total environmental impact of our manufacturing.
EcoVadis's insight:

Good to see a set of detailed targets in their sustainability commitments...

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Modular Phones, E-Waste, and the Shift Towards Sustainable Electronics

Modular Phones, E-Waste, and the Shift Towards Sustainable Electronics | Sustainable Procurement | Scoop.it
Now that they've released the second version of their phone (they've sold 20,000 and shipped roughly a quarter to consumers), the company plans to focus on making the supply chain more fair.
EcoVadis's insight:

Fairphone still blazing trails to show the way in sustainable electronics - from fair sourcing to circular re-use. 

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California’s pioneering anti-slavery law lacks punch, report says

California’s pioneering anti-slavery law lacks punch, report says | Sustainable Procurement | Scoop.it
Identifying poor labor practices and stopping them can be a time consuming and costly task for companies. Because of the complexity of supply chains, Jurewicz said it’s often almost impossible for manufacturers, retailers and consumers to uncover the human rights abuses that lie within their products.
EcoVadis's insight:

Laws are a great start to moving toward more sustainable supply; The next elements to put in place to make it happen are reliable indicators of supplier practices that scale...

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Randall Mauldin's curator insight, January 25, 8:56 AM

Supply Chain Activisim is where you get the punch to enforce these laws. How do you get supply chain transparency?


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Want to achieve corporate citizenship progress? Include your supply chain

Want to achieve corporate citizenship progress? Include your supply chain | Sustainable Procurement | Scoop.it
73 percent of executive respondents reported that they considered supply chain partners when developing corporate citizenship efforts. In the same report, nearly 80 percent listed securing a sustainable supply chain as a key business goal.
EcoVadis's insight:

The first audience that sustainable supply chain efforts are visible to are the employees; This is where sustainability and company culture intersect, and lasting changes are made.

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Global Risks of Highest Concern for Doing Business 2016

Global Risks of Highest Concern for Doing Business 2016 | Sustainable Procurement | Scoop.it
EcoVadis's insight:

Global supply chains and related CSR issues are deeply intertwined with almost every item on this WEF chart of "risks to businesses in 2016", like employment, social and national stability, climate change mitigation/adaptation, etc.

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Making sustainable palm oil a reality

Making sustainable palm oil a reality | Sustainable Procurement | Scoop.it
Consumers should, therefore, not boycott palm oil but demand its sustainability, as replacing it means having to use more land, thereby compounding deforestation.
EcoVadis's insight:

A familiar paradox in sustainability - the current product (palm oil) is vilified, but in fact may be the better choice - but how to monitor and police the development efforts?. Check out the debate in the comments. Consumers still don't have the information needed to make a decision, e.g. to boycott, or which products to boycott.

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The Supply Chain Cares About Sustainability More Than Ever

Using cover crops is one way the MBGro program is helping its grain producers become more sustainable.
EcoVadis's insight:

Awesome case where the Buyers are funding loaners of expensive crop science equipment for their suppliers to try out before they make a big investment, and it's working!

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Study: Companies Prioritizing Supply Chain Sustainability, But the Real Work Remains Ahead

Study: Companies Prioritizing Supply Chain Sustainability, But the Real Work Remains Ahead | Sustainable Procurement | Scoop.it
More European companies (59 percent) said that a sustainable supply chain is already a strategic priority
European executives, like their North American counterparts, cited brand image as the most important motivator, but far fewer (36 percent versus 47 percent of North American respondents) consider innovation to be important
European supply chain executives prioritized the economic impacts of sustainability, whereas North American executives were more likely to prioritize the environmental impact
EcoVadis's insight:

Is a terminology issue masking the real differences in how US vs EU companies approach sustainable supply? This is somewhat counter-intuitive that they report EU companies prioritized economic impacts while North American execs more likely environmental impact. Is it because in the US, execs usually interpret "sustainability" to mean "environment"? 

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After Paris Talks: Sustainability issues that should be top of mind

After Paris Talks: Sustainability issues that should be top of mind | Sustainable Procurement | Scoop.it
In light of last year’s milestones, sustainable practices will become a key objective for companies in the year ahead, with procurement in a unique position to lead the charge. There are a few key factors every procurement executive should keep in mind as we forge ahead into 2016.
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It's All Relative: The Fatal Flaw in Corporate Sustainability Ratings | Sustainable Brands

It's All Relative: The Fatal Flaw in Corporate Sustainability Ratings | Sustainable Brands | Sustainable Procurement | Scoop.it
Sustainability ratings evaluate companies on the basis of key performance indicators (KPIs) that address different economic, environmental, and social issues. All ratings do this a little bit differently. However, none of the most popular ratings connect their KPIs to the broader sustainability context in which companies operate. This is a fatal flaw. It is time to build context into sustainability ratings.
EcoVadis's insight:

Sometimes perfect is the enemy of progress. The important thing is to have a reliable metric/indicator, with a deep enough measurement, and a goal to shoot for.

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Exporters: your supply chain is key to your green credentials

Exporters: your supply chain is key to your green credentials | Sustainable Procurement | Scoop.it
A recent study for UPS, The Fifth Annual Change in the (Supply) Chain Survey, found that high-tech companies in particular are working hard to meet their responsibilities. For three quarters of companies, being greener also means cost savings (due to greater efficiency), while for 71% there is peace of mind about meeting customer expectations.
EcoVadis's insight:

Some impressive examples of how even small businesses can make a relative impact on sustainability - and even look into their supply chain - setting a great example for big businesses!

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Will sustainability work?

Will sustainability work? | Sustainable Procurement | Scoop.it
A recent Nielsen study found that 75% of millennial respondents and 72% of Generation Z (aged 15-20) will spend more on products and services from companies that commit to positive social and environmental impact. And 51% of baby boomers (aged 50-64) are also willing to choose and pay more for sustainable products. See the survey.
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EcoVadis's curator insight, January 31, 4:30 PM

Agriculture being particularly exposed to climate change impacts, glad to see the focus sustainable practices in the Ag supply chain!

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A Look Back at COP21: What the New Climate Change Agreement Means for Procurement

A Look Back at COP21: What the New Climate Change Agreement Means for Procurement | Sustainable Procurement | Scoop.it
For example, a large company spends about 55% of its revenue on purchased materials, and 80% in supply chain activities. This type of leverage in a supply base can drive significant supplier engagement. If these multinational companies made sustainable procurement practices their priority and encouraged tier 1-3 suppliers to do the same, the positive effects would cascade down throughout the global supply chain.
EcoVadis's insight:

Nice wrap-up of COP21 and implications for procurement and supply professionals

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Are top Indian companies interested in greening the supply chain?

Are top Indian companies interested in greening the supply chain? | Sustainable Procurement | Scoop.it
Achieving closed loop systems is not exactly easy. It may take several years to achieve it and some industries may never really manage it .However, some immediate steps could include:
1. Choosing the right suppliers: This requires that companies choose the most environmentally responsible suppliers. This also implies that existing suppliers be trained into becoming environmentally responsible.
EcoVadis's insight:

This article on sustainable supply in India hits most of the key topics in sustainable procurement. But the last line is a bit unambitious: it We need a mantra to carry us way beyond "good enough", I'd say 'engagement' in the sustainable mission is a higher goal than 'compliance'.

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Ayala recognizes merchants for sustainable practices

Ayala recognizes merchants for sustainable practices | Sustainable Procurement | Scoop.it
The company hopes to make SLAM an inspiration to other merchants in enhancing competitiveness and applying sustainability practices in their operations, to help shape and influence their markets and achieve a much faster and sustainable growth.
EcoVadis's insight:

1000's of meaningful actions like these from relatively small companies around the world -- those who are supplying the big MultiNationals -- this is what will eventually add up to make the big difference. Even better, it's not just influence from the "Buyers", but this company has embraced and taken ownership of their sustainability mission, and are now seeking to set an example for their peers. This is what we are trying to achieve.

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Study finds Audits in global supply chains for multinational corporations fail to detect serious abuses

Study finds Audits in global supply chains for multinational corporations fail to detect serious abuses | Sustainable Procurement | Scoop.it
The inspection and auditing system for global supply chains is ‘working’ for corporations, but failing workers in developing countries and the planet
Exclusive interviews reveal that labour abuses, poor working conditions and environmental degradation within global supply chains remain widespread
EcoVadis's insight:

Audits have been under fire for a while now, but this study goes so far as to say it's a 'system' that is doing more harm than good, and preventing real progress.

Read it and make your own judgement...

There may still be effective use - when combined with other types of assessments and evaluations, and with rigorous oversight.

(This is the subject of an upcoming blog series - keep an eye peeled for it on blogspot.ecovadis.com)

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More Than 1,000 Sustainability Reports Expected in Next Two Years in North America: CSE Research

More Than 1,000 Sustainability Reports Expected in Next Two Years in North America: CSE Research | Sustainable Procurement | Scoop.it
there is a clearly visible trend of public companies (82%) to publish sustainability reports in order to disclose information and be transparent about their sustainability performance. What is also interesting is that there is a growing trend for Small-Medium Enterprises to publish sustainability reports in order to increase their transparency, attract customers and grow their business.
EcoVadis's insight:

Things are turning around in the US for sustainability...

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Trucking company goes 'beyond compliance' to exceed EPA guidelines

Trucking company goes 'beyond compliance' to exceed EPA guidelines | Sustainable Procurement | Scoop.it
A charter member of the EPA’s voluntary SmartWay program, Schneider exceeded the EPA’s 2014 fuel reduction and environmental performance goals to earn the recognition, with a 22 percent reduction in carbon dioxide, 39 percent reduction in nitrogen oxide and 30 percent reduction in particulate matter year-over-year.
EcoVadis's insight:

Rewards and incentives - even if from the good ol' EPA - are a great way to drive performance at all layers of the value chain!

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Going Green Can Be Good for the Bottom Line

Going Green Can Be Good for the Bottom Line | Sustainable Procurement | Scoop.it
At the same time, business leaders are learning that clean operations and higher growth can go hand in hand. Now that customers, investors, activists, and even a company’s own employees are voicing concerns about environmental impact, a greener record does more than simply guard against public-relations disasters. It can bolster a firm’s reputation.
EcoVadis's insight:

Awareness of the importance of supply chain/procurement in the quest for a sustainable future is penetrating the business schools (in  this case at Kellogg/Northwestern prof Özge İşlegen), where students of today are tomorrow's employees and leaders. 

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