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

The high-volume warehouse or distribution center that supports B2B, Omni-channel activities, direct-to-consumer shipments, and the Internet of Things all require a flexible and scalable supply chain in order to function at optimal capacity. The problem is that most of today's supply chains are made up of fragmented silos of information that compromise their ability to compete, be responsive to customer demands or seize new business opportunities.

As customers' demands constantly evolve, transportation and logistics (T&L) operations are being put under growing pressure to offer more efficient delivery services, while not compromising on customer service. Using findings from a research survey conducted among transport and logistics managers around the world, this report explores how a combination of mobile technology implementations for mobile workers, and process re-engineering efforts can elevate operations to the next level.

It's a fact - most best-of-breed WMS providers force you to pay every time you require a system change. Uncover five more dirty secrets many warehouse management systems providers don't want you to know. Download the white paper 5 Dirty Secrets of Warehouse Management Systems to discover these hidden truths and gain valuable information on considerations for evaluating WMS vendors.

Not Sure? The Whitepaper "Stay or Switch" Provides the Research Necessary for You to See How Well Your Provider Stacks Up!

Too many companies invest in ERP systems but do not achieve the business benefits they anticipated. Sometimes, the ERP solution never fits the way your people and processes work.

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.