Ernst & Young report identifies climate change and sustainability risks

Government engagement is also motivating corporate focus on greening the supply chain.
By Patrick Burnson, Executive Editor
December 08, 2010 - SCMR Editorial

Regardless of the outcomes of the United Nations Framework Convention on Climate Change (COP 16) in Cancun, Mexico this month, businesses face increasing pressure to identify environmentally-sound alternatives for managing operations risks, particularly when it comes to the supply chain. 

“Supply chain and environmental professionals share a common goal: to reduce waste,” said Steve Starbuck, Americas Leader, Climate Change and Sustainability Services, Ernst & Young LLP. “While these supplier programs could be seen as a burden, they are actually great opportunities to cut costs while reducing an organization’s environmental footprint. The risks –- once identified and managed for an individual organization –- can help foster customer relationships and yield competitive advantages.”

The statement came following the announcement by a report that identifies five highly charged climate change and sustainability risks that executives should consider as they respond to growing demand to eliminate waste from their supply chains and to report on these initiatives. 

As reported in SCMR, a similar conclusion was signaled at the BSR conference in New York last month. In its session, “Closing the Loop: Minimizing Product Life-Cycle Impacts,” analysts noted that corporations are focusing on product stewardship, before the government does.

According to Ernst & Young, the demand comes from a proliferation of large corporate supplier qualification and scorecard programs that are employed to examine carbon footprints and resource use at every step of the product and service lifecycle - from the sourcing of raw materials to waste disposal by customers. In addition to commercial customers, consumers, investors, analysts and other stakeholders are demanding transparent information about the lifecycle of products and services.

Government engagement is also motivating corporate focus on greening the supply chain. In November, the U.S. government – the largest supply chain in the country – announced its GreenGov Supply Chain Partnership, a pilot program to cut waste and pollution in the federal supply chain by measuring greenhouse gas emissions (GHG). Following this pilot, the General Services Administration intends to develop an incentive-based approach to contracting to favor companies that track and disclose their GHGs.



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

In this webcast we'll explore how successful companies use strategies such as cross-client load consolidation, zone skipping, pooling, etc. to minimize freight cost. You’ll hear how transportation optimization is used to generate cost savings and where the ROI comes from.

Even with expected import cargo volume declines in the coming months, the Port Tracker report by the National Retail Federation (NRF) and maritime consultancy Hackett Associates expects volumes to be up for the first half of 2016.

USPS pointed to ongoing growth in its Shipping and Package Group, whose primary offerings are comprised of Priority Mail, Express Mail, Parcel Select and Parcel Return services, as the key driver for the quarterly revenue gains.

With a 2.3 cent decline to $2.008 per gallon, this week’s price stands as the lowest national average going back to the week of March 16, 2009, when it checked in at $2.017.

A recent Wall Street Journal report stated that third-party logistics and freight transportation services provider XPO Logistics shut down seven freight terminals that were part of the Con-way Inc. less-than-truckload (LTL) network, Con-way Freight. Con-way was acquired by XPO for $3 billion last year.

Article Topics

News · Supply Chain · Green · BSR · Source · Partnership · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.