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Global Supply Chains and the Necessity Of Making Operations Safer, More Sustainable Savvy corporate managements recognize that the supply chain of their company represents a huge opportunity for cost savings, more efficient management of procurement, and the extension of important health & safety practices beyond their own operations. And, that addressing the inherent risk within their global supply network of partnering organizations (suppliers large and small) is a critical risk management consideration, taking the supply chain to the company board room (that is, the directors’ responsibility to oversee enterprise risk management approaches).
First is the trend toward globalization of numerous elements of operations for virtually all businesses. Even a small retailer today can attract and service customers that are 7,000 miles distant, and the “store” can be totally on line. The second critical driver is the technology that makes this possible, with the foundation being the reach of the internet, and use of the World Wide Web. And the third major force for change over the past several decades is the global consumer thirst for ever-lower priced goods and greater competition within the retail space. In that regard, we are truly entered into the Age of the Internet of Things. And so the focus of corporate management on the supply chain is of critical importance to business enterprises -- from large-cap public companies all the way down the value chain to their smallest (independent) suppliers of goods and services. Companies in developed nations -- USA, Canada, Europe, and United Kingdom -- have a plethora of compliance regulations to follow. Moving to less developed economies for their outsourcing, early on the suppliers in far off lands could have less safe and even unsafe operations. It was “out of sight.” No more! Stakeholders are looking more closely these days at the source of goods and considering the working conditions at those sourcing points. And so the growing emphasis on “supplier performance management models,” as described by Pierre-Francois Thaler, co-CEO of the EcoVadis organization, who shares importance perspectives in our Top Story this week. EcoVadis provides “sustainability scorecard ratings” for major customers to evaluate their supply chain partners. (There are 21 CSR performance indicators, 150 commodities, 110 countries in the EcoVadis scoring system.) At G&A Institute, we assist our corporate clients in responding to the EcoVadis surveys – these are very comprehensive. There is important information for managers of all sizes of business organizations in the interview published by Supply Chain Digital. Corporate sustainability leadership companies understand the importance of “effective supply chain management” to their top and bottom lines, the company brands and reputation, and the risk factors presented by global sourcing. An example is Johnson & Johnson, the giant healthcare products company (for “health, wellness and fitness”). Addressing supply chain management, the J&J web site notes: “Taking responsibility for the environmental and social impacts of our products begins with product design and development, and then extends to the sourcing, manufacturing and delivery of our products to our customers. For many years, we have been implementing and improving environmental and social measures in our own organization. As a natural progression, we are focusing on promoting sustainability throughout the supply chain.” “By doing so, we can improve our own performance, as well as influence the performance of our supply chain partners. We look to partner with suppliers who are transparent about their sustainability programs, can assure us that they are sustainably producing the goods and/or services we are buying, and can verify the legal and regulatory compliance of their supply chain. With annual spending of approximately $30 billion, we are able to leverage our purchasing power to set sustainability expectations beyond our own operations.”
Top Story The necessity of sustainable supply chains Sustainability in Focus Arcadis Finds New York City Earns Most Sustainable US City Global Conservation Summit Sets Sustainability Agenda Electrolux takes action on sustainability and food, supporting UN Global Goals How Framing Sustainability as Strength Can Help Win Male Audiences Mass Transformation: From Coal Mining to a Model for Sustainability Both Investors and Corporate Executives are Seeing Sustainability Benefits When to Take Investor Demands for Sustainability Seriously (and When to Ignore Them) The 'ignored’ commodity: Confectioners face tough choice on sugar sustainability 5 Commonly Missed Opportunities in Corporate Sustainability Dubai and Abu Dhabi score high on sustainability Democratic principles at core of UN 2030 sustainability agenda, Ban says on International Day Sustainability in the pipeline: securing water and sanitation for the future How To Succeed At Sustainability (And Why Greenwashing Doesn't Work) ESG Issues & Players Was that climate change? Scientists are getting faster at linking extreme weather to warming 7 things to know about the Bayer-Monsanto deal Can our need for a carbon-free future override our fears of nuclear energy? Hey, Wells Fargo: Are You Kidding Me? |
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Apple’s 21% Rally Is Tough Pill for 295 Funds That Bailed Funds Load Up on Risk as Crisis-Era Securities Make a Comeback ANALYSIS-U.S. public pensions turn to currency as returns sour Watching the Watchers
OVERVIEW / MISSION The Equator Principles are a set of principles used by Financial Institutions (known as “EPFIs”) designed to ensure that the projects they finance are "developed in a manner that is socially responsible and reflect sound environmental management practices." BACKGROUND / METHODOLOGIES The Equator Principles are primarily applied to project financing, which the standards consider "a method of funding in which the lender looks primarily to the revenues generated by a single project, both as the source of repayment and as security for the exposure... This type of financing is usually for large, complex and expensive installations that might include, for example, power plants, chemical processing plants, mines, transportation infrastructure, environment, and telecommunications infrastructure." Financing can take several forms, including capital expenditures or refinancing. The group adds that Principles "are intended to serve as a common baseline and framework for the implementation by each adopting institute of its own internal social and environmental policies, procedures and standards related to its project financing activities." Borrowers must comply with lenders' ESG policies underlying the Equator Principles. News Sweeps
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SustainabilityHQ Highlights is prepared by the Governance & Accountability Institute, Inc. based on continuous monitoring of trends and developments in Sustainability and ESG. Click here for more information on the Governance & Accountability Institute’s SustainabilityHQ resources. The SustainabilityHQ™ platform is available by subscription. Governance & Accountability Instiute is the “Sustainability Headquarters™” for clients in the corporate, investment, public and social sectors. Based in New York, G&A is a for-profit consulting organization providing a range of value-added strategies, services and resources related to ESG & sustainability to clients in the corporate and capital markets communities.The G&A services portfolio includes: Sustainability Reporting; Assistance with GRI Report Alignment Services; GRI G4 Reporting; Gap Analysis; Materiality Assessments & Strategies; Stakeholder Engagement; Peer Benchmarking; Critical Issues Management; Coaching / Training; Stakeholder Report Review; Sustainability / Responsibility Report Announcement Services; Sustainability Recognitions/Awards; Public Relations Programs; Communications & Marketing; Event / Speaking Opportunities; Writing & Editing Assistance; Investor Data Review & Enhancement; Third Party Investor Data Providers Assistance; ESG Investor Engagement; Shareholder List Profiling; Investor Roadshows; Investor Perception Surveys. SustainabilityHQ™ is managed and published by Governance & Accountability Institute, Inc. | |||||||||||||||||||||||||||
Theresa Ragozine, VP of Procurement Citizenship at J&J, will lead a CSR Executive Panel discussion for the two-day CSR Certificate Program presented by The Institute for Ethical Leadership at Rutgers Business School and Governance & Accountability Institute at the Newark, NJ campus of the Rutgers University School of Business on Wednesday, September 28th (2016) at 1PM. 
UN - The Equator Principles