Sustainable Procurement: A Discussion with the Sustainable

Sustainable Procurement: A
Discussion with the Sustainable
Purchasing Leadership Council
(SPLC) and The Sustainability
Consortium® (TSC)
Tuesday, March 24, 2015
© 2014 BrownFlynn Ltd. All Rights Reserved.
Do Good. Do Well. Win.™
Thought Leadership Councils (TLCs)
The Thought Leadership Councils (TLC’s) are groups within the Association that members can join to
drive learning and development within the CR community. Each Council meets via GoToMeeting®
teleconference on a monthly basis, providing our members the opportunity to interact with industry
peers. This enables you to get the most out of your membership and share successes, practices, and
publish new findings.
Each is Chaired or Co-Chaired by Members dedicated to achievement of that TLC’s goals, and reports to
both the Board and the community at large regarding progress toward the TLC’s goals. There are five
Thought Leadership Councils in which members can join.
 Brand & Reputation Management – Meets the 1st Wednesday of the Month at 4PM ET.
 Diversity & Inclusion – Meets the 2nd Tuesday of the Month at 1PM ET.
 Ratings & Rankings – Meets the 1st Thursday of the Month at 3PM ET.
 Professional Development – Meets the 3rd Thursday of the Month at 1PM ET.
 Responsible Supply Chain – Meets the Last Tuesday of the Month at 4PM ET.
© 2014 BrownFlynn Ltd. All Rights Reserved.
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Sustainable Procurement: A Discussion with the
SPLC and TSC
Hosts:
 Corporate Responsibility Association (CRA), Responsible Supply Chain Thought Leadership Council
Panelists
Moderators
 Allie Williams, Executive Director, CRA
 Mike Wallace, Managing Director, BrownFlynn, Chair of the Responsible Supply Chain Thought Leadership
Council
© 2014 BrownFlynn Ltd. All Rights Reserved.
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Maturing Market Dynamics
© 2014 BrownFlynn Ltd. All Rights Reserved.
Who is reporting?
© 2014 BrownFlynn Ltd. All Rights Reserved.
/5
STAKEHOLDERS / REGULATORS
Market & Government Regulatory Involvement
Stock Exchange Activity
International Regulatory & Public Agency Activity
US Regulatory, Public Agency & Professional Industry Activity
© 2014 BrownFlynn Ltd. All Rights Reserved.
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Financial Market Uptake
Principles for Responsible Investment (PRI) [2006]
Currently represents over $34 Trillion in investment capital
Over 1,200 signatories
Investor Network on Climate Risk (INCR) [2003]
Currently represents over $9 Trillion in investment capital
90+ members
Carbon Disclosure Project (CDP) [2002]
Currently represents over $71 Trillion in investment capital
act on behalf of 551 institutional investors
Institutional Investors Group on Climate Change (IIGCC) [2001]
Currently represents $6 Trillion in investment capital
70 members
Interfaith Center on Corporate Responsibility (ICCR) [1972]
Currently represents over $100 Billion
300 members
© 2014 BrownFlynn Ltd. All Rights Reserved.
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What’s Happening in Sustainability
Explosion of Reporting Frameworks, Ratings, Rankings, Researchers and Surveys
© 2014 BrownFlynn Ltd. All Rights Reserved.
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Supply Chain Developments
Sustainability Training
-
Nike
Puma
Apple
AT&T, Inc.
Mattel
Bristol-Myers Squibb
Campbell’s
Intel
Sustainability Surveys
-
IBM
Airbus
Kaiser Permanente
Siemens
Marathon Oil
British Telecom
Boeing
Ingersoll Rand
Volvo
United States Postal Service
Wal-Mart
BMW
Johnson Controls
CR’s Top 10 Best Corporate Citizens 2013
© 2014 BrownFlynn Ltd. All Rights Reserved.
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Who has a supply chain?
© 2014 BrownFlynn Ltd. All Rights Reserved.
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Sustainable Procurement: A Discussion with the
SPLC and TSC
Hosts:
 Corporate Responsibility Association (CRA), Responsible Supply Chain Thought Leadership Council
Panelists
Moderators
 Allie Williams, Executive Director, CRA
 Mike Wallace, Managing Director, BrownFlynn, Chair of the Responsible Supply Chain Thought Leadership
Council
© 2014 BrownFlynn Ltd. All Rights Reserved.
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About The Sustainability Consortium (TSC)
Enabling the consumer goods industry to provide more sustainable products
• A multi-stakeholder non-profit organization that translates
scientific information into business practice
• Mission: to design and implement credible, transparent and scalable, science-based
measurement and reporting systems accessible for all producers, retailers, and users
of consumer products
• A global organization, with offices in the United States, Europe and China
• >100 Members and 1000s of users worldwide
© 2015 Arizona State University and University of Arkansas
12
TSC’s metrics are used by buyers and suppliers to address
product sustainability in a cost efficient way
Buyers
• Hotspots
Communicate efficiently
and effectively with suppliers:
• Improvement
opportunities
• Ask category-specific questions
• Track supplier performance using KPIs
• Key Performance
Indicators
Suppliers
Address product sustainability
more effectively and efficiently:
• Use a single reporting tool across buyers
• Enhance product development
• Reduce spending on sustainability
research and reporting
• Evaluate performance of their suppliers
Hotspot: Sustainability focused social and environmental high impact areas
© 2015 Arizona State University and University of Arkansas
v
v
v
v
• Category
Sustainability
Profiles
v
v
v
v
TSC® provides
Improved
product
sustainability
and cost
efficiency
How TSC’s Product-Category Approach Fits In
How TSC Fits In
Our Approach to Sustainability
• Business-focussed: 80:20 rule,
driving action today
Breadth
Corporate
Reporting
• Covering social & environmental
TSC Product
Category
“Traditional”
LCA
• Full lifecycle approach, drawing
on best available science and
multi-stakeholder input
• Nearing target: covering 60-80%
of consumer goods impacts
• Completed 110 product
categories (a handful left)
Detail/Specificity
© 2015 Arizona State University and University of Arkansas
14
TSC Metrics are Aligned with Key Initiatives
TSC has adopted KPIs/metrics and referenced key initiatives. EU PEF is next
Sector
Examples of Aligned Initiatives
CrossSector:
Food, Bev.
& Agri.:
Electronics:
General
Merchandis
e:
Clothing:
Toys:
Packaging
:
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How Does TSC Create a Product Sustainability Toolkit?
Science-based and stakeholder informed
Life Cycle Perspective
Category
1 Product
Selection
of
2 Review
Scientific Sources
Hotspot
3 Lifecycle
Identification
Toolkits reveal social and environmental
hotspots from throughout the product
category life cycle
4 Improvement
Opportunity
5 Evidence
Evaluation
Performance
6 Key
Indicator Design
7 Stakeholder
Reviews
Publication
8 Toolkit
and Use
9 Toolkits Updated
Identification
Multi-Stakeholder Process
TSC members and invited participants
are stakeholders from business, civil
society, government, and academia who
collaboratively develop the Product
Sustainability Toolkits
© 2015 Arizona State University and University of Arkansas
16
TSC takes a Lifecycle Approach
Chicken
Supply Chain Overview
Hotspots & Sustainability Issues
© 2015 Arizona State University and University of Arkansas
TSC working groups are across consumer goods sectors.
ELECTRONICS
GENERAL
MERCHANDISE
FOOD BEVERAGE &
AGRICULTURE
CLOTHING, FOOTWEAR
& TEXTILES
HOME &
PERSONAL CARE
RETAIL
PAPER, PULP,
& FORESTRY
PACKAGING
TOYS
MEASUREMENT
SCIENCE
Four years ago, when I received an email from the wine team asking for an attribute in bulk
shipping, I would have spent two weeks on Google, and talking to people about wine, trying
to understand if bulk shipping counted. I probably would have told them no. My buyer would
have sulked, given up on sustainability and we would have not made progress in the wine category.
This year, I looked up the information in The Consortium’s CSPs and KPIs. I then checked this
information against the supplier and wrote an email back that day approving the category.
Carmel McQuaid, Marks & Spencer
© 2015 Arizona State University and University of Arkansas
Walmart leverages TSC metrics to create its Sustainability Index
Research Issues &
Engage
Stakeholders
Develop Metrics
to Quantify
Sustainability
Survey Suppliers
& Collect Data
Identify
Improvement
Opportunities
Who:
• 100+ members; including our biggest
suppliers, competitors, NGOs, universities, &
experts
Who:
• Buyers, Category Directors, Sourcing Directors,
Product Development & Quality Teams
Key Deliverable:
▪ Key Performance Indicators (KPIs) that are
used to survey suppliers & measure their
sustainability performance
Key Deliverable:
• Category Scorecards that are used to set
baselines, benchmark suppliers, track progress,
& identify leaders and laggards
Walmart recently launched its Sustainability Leaders badge using
TSC metrics
“Supplier 15 Questions” 2009
Enabled Walmart to:
• Send the sustainability
signal to our supply
chain
Measurement by category
2012 and Beyond
Also enables Walmart to:
• Understand what is
relevant by category
• Track progress over time
Recognition on
Walmart.com Starting
in 2015
Will further enable Walmart to:
• Communicate leading brands
to the customer
Launching 2015
TSC is not just Metrics: TSC Implementation Services
The Sustainability Consortium:
• Develops and maintains a rich database of
sustainability information and research.
• Develops business tools based on that research
• Facilitates integration of tools to drive
implementation
Mission: Improved Product Sustainability
• Impact only comes when the supply chain is
using tools and metrics to drive improvement in
product sustainability
TSC is not just metrics, also about integration and
implementation of metrics
• Providing improvement opportunities to help
drive change within product categories
• Aligning metrics to facilitate use of tools across
industry and supply change
• Developing guidance tools to further facilitate
decision making
• Providing trainings and advisory services
© 2015 Arizona State University and University of Arkansas
Implementation
training,
consulting,
custom reports
Category
Tools,
Guidance
Tools
Research Database:
Hotspots, Improvement
Opportunities, KPIs,
references
21
TSC Implementation Services
Driving impact through implementation of TSC tools
• Online training tool for users to self-teach
Online Training
Portal
Webinars
• Training materials, worked examples and recorded webinars on topics such
as: TSC & TSC Toolkit contents; responding to a retailer KPI request;
implementing TSC’s Tools; and more
• For Non-Members: Intro webinars on TSC, Toolkits, KPIs and responding to
retailers’ requests
• For TSC Members: Iin-depth training on identifying and implementing
improvements, demonstrating progress etc.
• Workshops and in-person training projects with TSC Members, identifying
needs and supporting implementation
Implementation
Projects
• Launching programs for non-Members soon
• Plans to build ecosystem of consultants, certification bodies and other
partners to support users
© 2015 Arizona State University and University of Arkansas
22
A new online educational platform that provides guided practice on using TSC tools and
services that address issues related to product sustainability in the supply chain
Learn more at http://www.sustainabilityconsortium.org/tsc-learning-center/
Registration opens mid-February
Questions? Email TSC@walton.uark.edu
© 2015 Arizona State University and University of Arkansas
24
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Analysis by TRUTHstudio based on US Bureau of Economic Analysis 2011 Summary Use Annual I-O Table
“ Our acquisition of goods and
services creates a carbon footprint
nine times that of our buildings
and fleet, put together.”
Dan Tangherlini
Administrator
US General Services Administration
26
DEFORESTATION
OVERFISHING
DISCRIMINATION
SWEATSHOPS
27
28
29
30
31
Could we collaborate to
launch a shared program
for guiding, measuring, and
recognizing leadership
in sustainable purchasing?
32
33
The timeline…
34
2013
2014
2015
Launch Event
Viewed by 1000+
organizations in
46 countries.
Hosted at
American
University.
Moderated by
Joel Makower
and broadcast by
35
2013
2014
2015
Founders Circle formed
City of
Portland, OR
City of San
Francisco, CA
State of
California
City of
Washington, DC
State of
Michigan
State of
Minnesota
U.S.
DEPARTMENT
of
AGRICULTUR
E
36
2013
2014
2015
Strategic Partners engaged
37
2013
2014
2015
Founding Summit
38
2013
2014
2015
Website launched
www.sustainablepurchasing.org
39
2013
2014
2015
Membership opens
A big tent.
40
2013
2014
Membership opens
Accenture
Aflac
Alameda County, CA
American Chemistry Council
American Clean Skies Fdn
American Coatings Assoc.
American University
Apex Clean Energy
Aramark
Arizona State University
Arlington County, VA
Asia Pulp & Paper
ASSA-ABLOY
AASHE
Belk, Inc.
Best Buy
Biosynthetic Technologies
Bloomberg
BSR
BuildingWise, LLC
Business & Institutional
Furniture Manufacturers
Association
Caesars Entertainment
California DGS
CalRecycle
Canadian Aboriginal and
Minority Supplier Council
CBRE
CEGESTI
Center for Resource Solutions
CIPS Sustainability Index
CRG SustainableSolutions
Citi
City & County of Denver, CO
City of Cleveland
City of Portland, OR
City of San Francisco, CA
City of Santa Monica
City of Seattle, WA
Coalition of Immokalee
Workers
Code Earth Group
Consumer Specialty Products
Association
Dell
Domtar
EcoBuilder Consulting
Ecoinstitut
EcoLab
EcoVadis
Edelman
EI Analytics
Elliott Affiliates, Ltd.
Emory University
FairTrade USA
FedEx
Forest Stewardship Council
Goodyear
Green Electronics Council
Green Seal, Inc.
GreenCircle Certified
Haworth Inc.
HDR Architecture, Inc.
Health Care Without Harm
IERS
iFixIt
Interface Americas, Inc.
International Campaign for
Responsible Technology
Int’l Labor Rights Forum
ISEAL Alliance
JCPenney
King County, WA
Kohler Company
Kuhn Associates Sustainability
Advisors
Leonardo Academy
LittleFootprint Lighting
Lockheed Martin
Mahindra Sanyo Special Steel
Pvt. Ltd.
Massachusetts Operational
Services Division
Massachusetts Water
Resources Authority
Michigan Department of
Environmental Quality
Michigan Department of
Technology, Mgmt & Budget
Michigan State University
MindClick Group
Minnesota Materials
Management Division
Minnesota Pollution Control
Agency
Multnomah County, OR
Municipal Collaboration for
Sustainable Procurement
2015
Today: ~140 members; > $200bn in spend
North Shore LIJ Health Sys
Northbound Ventures, LLC
Northeast Recycling Council
Office Depot
Pacific Gas & Electric
PE International
Perlmutter Associates
Portland Community College
Portland State University
Practice GreenHealth
PROSOCO
Province of Nova Scotia
PRé Sustainability
re:sustain
RepRisk AG
Resource Recycling Systems
Responsible Purchasing Net.
REUSA-WRAPS Reusable
Logistics Solutions, LLC
Rivanna Natural Designs
Roundtable on Sustainable
Biomaterials
SciQuest
SCS Global Services
Snohomish County
Social Hotspots Database
Project
Sound Transit
Southern Connecticut State
University
Sphere E
Sustainable Flows
Sustainable Forestry Initiative,
Inc.
Sustainable Green Printing
Partnership, Inc.
Sustainable Methods Inst.
Sustrana
TD Bank Group
The CarbonNeutral Co.
The District of Columbia
The George Washington
University
TreeZero Paper
Trucost
UL Environment
United Soybean Board
University of California, Santa
Barbara
University of Pennsylvania
University of Texas, Austin
UPS
US Department of Agriculture
US Department of Energy
US EPA
US GSA
US Green Building Council
Venable LLP
Waste Management
World Resources Institute
World Wildlife Fund
41
2013
2014
2015
Principles released
www.sustainablepurchasing.org/principles/
42
2013
2014
2015
Principles released
www.sustainablepurchasing.org/principles/
43
2013
2014
2015
Annual Summit
175 Attendees, 121 Organizations, 20 Workshops
44
2013
2014
2015
Program Committees formed
Technical Advisory
Committee (TAC)
SPLC
Board
Ad Hoc
Work. Groups
Purchasing
Category TAG
Purchasing
Category TAG
SPLC
Staff
Purchasing
Category TAG
45
2013
2014
2015
Program Committees formed
46
2013
2014
2015
Guidance v1.0 Release
www.sustainablepurchasing.org/guidance/
47
2013
2014
2015
Pilot phase
www.sustainablepurchasing.org/pilot/
48
2013
2014
2015
Pilot phase
www.sustainablepurchasing.org/pilot/
49
2013
2014
2015
Pilot phase
www.sustainablepurchasing.org/pilot/
50
2013
2014
2015
Pilot phase
www.sustainablepurchasing.org/pilot/
51
2013
2014
2015
Pilot phase
www.sustainablepurchasing.org/pilot/
52
2013
2014
2015
SPLC Connect
May 26, 2015
www.sustainablepurchasing.org/connect/
53
2013
2014
2015
SPLC Summit
May 26-28, 2015
www.sustainablepurchasing.org/summit/
54
2013
2014
2015
Rating System
begin development
55
Ways to engage.
www.sustainablepurchasing.org…
 Become a member of the Council.
 Participate in piloting the Guidance.
 Provide feedback on the Guidance.
 Submit a case study for an Award.
 Attend or present at the 2015 Summit.
 Participate in buyer-supplier matchmaking
 Apply for a technical committee.
 Stand for election to the Board.
56
… /membership
… /pilot
… /guidance
… /awards
… /summit
… /connect
… /tags
… /governance
W W W. S U S TA I N A B L E P U R C H A S I N G . O R G
57
Thank You
Do Good. Do Well. Win.™
Mike Wallace
Managing Director, Chair
of the CRA Responsible
Supply Chain Thought
Leadership Council
(424) 320 3501
mikew@brownflynn.com
© 2014 BrownFlynn Ltd. All Rights Reserved.
Allie Williams
Executive Director
Corporate Responsibility Association
(215) 606-9523
allie.williams@sharedxpertise.com