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Supply	
  Chains:	
  Brand	
  Collabora3on	
  
An	
  analysis	
  of	
  some	
  Sustainability/Corporate	
  Responsibility	
  
Collabora3ons	
  
	
  
Slides	
  extracted	
  as	
  sample	
  from	
  the	
  “Ge?ng	
  to	
  Grips	
  with	
  
Corporate	
  Responsibility”	
  Online	
  training	
  series	
  	
  
The	
  Sustainable	
  Apparel	
  Coali3on	
  	
  

•  80	
  leading	
  apparel	
  and	
  
footwear	
  brands,	
  
retailers,	
  suppliers,	
  
nonprofits,	
  and	
  NGOs	
  	
  
•  Given	
  huge	
  impetus	
  by	
  
Greenpeace	
  Toxics	
  
campaign	
  in	
  2011/12	
  
The	
  Sustainable	
  Apparel	
  Coali3on	
  	
  
Ambi3ous	
  2020	
  agenda	
  based	
  
around:	
  	
  
	
  
•  Water	
  Use	
  &	
  Quality	
  
•  Energy	
  &	
  Emissions	
  
•  Waste	
  
•  Chemicals	
  &	
  Toxicity	
  
•  Social	
  and	
  Labour	
  improvements	
  
The	
  Sustainable	
  Apparel	
  Coali3on	
  	
  
Tool	
  developed	
  and	
  being	
  trialled:	
  Higg	
  Index	
  1.0:	
  	
  
	
  
“An	
  indicator	
  based	
  tool	
  for	
  apparel	
  that	
  enables	
  
companies	
  to	
  evaluate	
  material	
  types,	
  products,	
  
facili3es	
  and	
  processes	
  based	
  on	
  a	
  range	
  of	
  
environmental	
  and	
  product	
  design	
  choices.	
  	
  	
  
	
  
The	
  Index	
  asks	
  prac3ce-­‐based,	
  qualita3ve	
  
ques3ons	
  to	
  gauge	
  environmental	
  sustainability	
  
performance	
  and	
  drive	
  behavior	
  for	
  
improvement.”	
  
The	
  Sustainable	
  Apparel	
  Coali3on	
  	
  
Pros:	
  	
  
•  Raises	
  bar	
  for	
  companies	
  
•  Mechanism	
  for	
  dialogue	
  with	
  
NGOs	
  
•  Creates	
  collabora3on	
  and	
  
sharing	
  for	
  new	
  tools,	
  
processes	
  and	
  result	
  sharing	
  

Cons:	
  
•  What	
  about	
  all	
  those	
  non-­‐
branded	
  goods?	
  
•  Does	
  it	
  just	
  increase	
  the	
  gap	
  
between	
  the	
  leaders	
  and	
  the	
  
rest?	
  
•  Does	
  it	
  help	
  legal	
  enforcement	
  
in	
  China,	
  India	
  etc?	
  	
  
Heathrow	
  Sustainability	
  Partnership	
  
•  Established	
  in	
  2010,	
  trialled	
  
in	
  2011	
  
•  Partnership	
  brings	
  together	
  
15	
  companies	
  including	
  
airlines,	
  retailers,	
  
construc3on	
  companies,	
  
food	
  service	
  providers	
  and	
  
car	
  rental	
  businesses	
  
Heathrow	
  Sustainability	
  Partnership	
  
• 

15	
  companies	
  represent	
  75%	
  of	
  all	
  
the	
  staff	
  working	
  at	
  Heathrow	
  

• 

An	
  employment	
  and	
  skills	
  academy	
  
for	
  construc3on,	
  logis3cs	
  and	
  
avia3on	
  established	
  in	
  its	
  pilot	
  year	
  	
  

• 

Heathrow	
  now	
  boasts	
  the	
  world’s	
  
largest	
  employee	
  car-­‐sharing	
  scheme	
  
Business	
  for	
  Social	
  Responsibility/Forum	
  for	
  the	
  Future	
  	
  

Run	
  sector-­‐	
  and	
  issue	
  -­‐
specific	
  working	
  groups	
  
and	
  ini3a3ves:	
  shipping	
  
and	
  cargo,	
  coal,	
  water	
  and	
  
procurement,	
  etc…	
  	
  
	
  
Business	
  for	
  Social	
  Responsibility/Forum	
  for	
  the	
  Future	
  	
  

Pros:	
  	
  
•  Gathers	
  leadership	
  
groups	
  together	
  /	
  Peer	
  
pressure	
  
•  Helps	
  set	
  (policy)	
  agenda	
  
•  	
  Collabora3ve	
  learning	
  

Cons:	
  	
  
•  Free-­‐rider	
  members	
  with	
  
ligle	
  interest	
  in	
  changing?	
  
•  Scale	
  and	
  teeth:	
  Can	
  they	
  
evolve	
  and	
  grow?	
  	
  
Supply	
  Chain	
  Risk	
  Collabora3on:	
  Automo3ve	
  
•  2013:	
  Aston	
  Mar3n	
  and	
  Jaguar	
  
Land	
  Rover	
  teamed	
  up	
  with	
  
Toyota	
  and	
  Achilles	
  (vendor)	
  
•  Created	
  tool	
  to	
  map	
  their	
  supply	
  
chain	
  networks	
  	
  
•  Seeking	
  areas	
  where	
  they	
  are	
  
exposed	
  to	
  natural	
  disasters,	
  as	
  
well	
  as	
  financial	
  and	
  reputa3onal	
  
risks	
  
Vodafone:	
  Turkey	
  Farmers	
  Club	
  
Vodafone	
  Farmers'	
  Club	
  offers	
  special	
  
rates	
  &	
  info	
  to	
  farmers	
  
	
  
•  Mobile	
  tech	
  to	
  improve	
  incomes	
  &	
  
increase	
  efficiency/sustainability	
  
• 

	
  

500,000	
  signed	
  up	
  to	
  the	
  Farmers'	
  
Club	
  so	
  far.	
  Par3cipa3ng	
  farmers	
  
have	
  increased	
  produc3vity	
  by	
  about	
  
€100m	
  
Vodafone:	
  Turkey	
  Farmers	
  Club	
  
SMS	
  alerts	
  on:	
  
	
  
•  Regula3ons,	
  financial,	
  weather	
  	
  
•  Market	
  price	
  quotes	
  linked	
  to	
  loca3on	
  and	
  
produc3on	
  
	
  
Partnership	
  with	
  Sekerbank:	
  Farmers	
  pay	
  mobile	
  
phone	
  bills	
  post-­‐harvest	
  
	
  
Benefits	
  to	
  Vodafone:	
  Customer	
  loyalty,	
  mass	
  
revenue	
  streams	
  
Conclusions	
  and	
  Future	
  Trends	
  	
  
•  B2B	
  collabora3on	
  driven	
  by	
  
the	
  sheer	
  scale	
  of	
  
sustainability	
  challenge	
  	
  
•  By	
  need	
  to	
  "normalise"	
  
sustainable	
  behaviour	
  in	
  
supply	
  chains	
  and	
  	
  markets	
  
Conclusions	
  and	
  Future	
  Trends	
  	
  
“Changing	
  every	
  product,	
  factory	
  and	
  
raw	
  material	
  source	
  in	
  your	
  supply	
  
chain	
  and	
  encouraging	
  every	
  
customer	
  to	
  consume	
  differently	
  
defies	
  the	
  ability	
  of	
  even	
  the	
  largest	
  
business	
  alone”	
  	
  
(Mike	
  Barry,	
  Head	
  of	
  Sustainable	
  	
  	
  	
  	
  	
  
Business,	
  Marks	
  &	
  Spencer)	
  
Conclusions	
  and	
  Future	
  Trends	
  (cont)	
  
•  The	
  new	
  economy	
  will	
  also	
  be	
  
horizontal,	
  not	
  ver3cal.	
  This	
  
requires	
  new	
  alliances/
partnerships	
  
•  Tradi3onal	
  barriers	
  between	
  
industrial	
  sectors	
  will	
  break	
  down	
  
as	
  a	
  circular	
  economy	
  forms	
  
Conclusions	
  and	
  Future	
  Trends	
  (cont)	
  
• 

Expect	
  more	
  collabora3on	
  around	
  
commodi3es.	
  No	
  single	
  business	
  
purchases	
  enough	
  volume	
  to	
  shin	
  the	
  
market	
  alone	
  (Palm	
  Oil,	
  Soy,	
  Cogon)	
  

• 

There	
  will	
  be	
  greater	
  collabora3on	
  
around	
  waste	
  and	
  raw	
  materials.	
  
One	
  company	
  will	
  seek	
  to	
  convert	
  
waste	
  into	
  another	
  company’s	
  raw	
  
materials	
  and	
  vice	
  versa	
  
Conclusions	
  and	
  Future	
  Trends	
  (cont)	
  
• 

Technology	
  sector	
  is	
  also	
  likely	
  to	
  
witness	
  greater	
  business	
  to	
  business	
  
collabora3on	
  

• 

Mobile	
  phone	
  technology,	
  for	
  
example,	
  can	
  offer	
  the	
  solu3ons	
  to	
  
other	
  industrial	
  sectors’	
  sustainability	
  
challenges.	
  Supply	
  chain	
  
transparency	
  may	
  be	
  just	
  one	
  of	
  
these	
  areas	
  
Was	
  this	
  useful?	
  Would	
  you	
  like	
  the	
  video	
  version?	
  
Then	
  sign	
  up	
  for	
  updates	
  and	
  
informa3on	
  on	
  our	
  online	
  
training	
  courses	
  at:	
  
hgp://g2g-­‐training.com	
  
Courses	
  on	
  Repor3ng,	
  
Communica3ons,	
  Supply	
  Chain,	
  
Community,	
  Risk	
  and	
  Materiality	
  
management	
  also	
  available	
  soon	
  

This	
  presenta3on	
  is	
  from	
  our	
  
“Ge?ng	
  to	
  Grips	
  with	
  Corporate	
  
Responsibility”	
  Eight	
  module	
  
online	
  course.	
  	
  
The	
  next	
  one	
  starts	
  on	
  March	
  24	
  
2014.	
  Sign	
  up	
  here:	
  
hgp://g2g-­‐training.com/
course1.php	
  

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Brand collaboration on Sustainable and Responsible Supply Chains

  • 1. Supply  Chains:  Brand  Collabora3on   An  analysis  of  some  Sustainability/Corporate  Responsibility   Collabora3ons     Slides  extracted  as  sample  from  the  “Ge?ng  to  Grips  with   Corporate  Responsibility”  Online  training  series    
  • 2. The  Sustainable  Apparel  Coali3on     •  80  leading  apparel  and   footwear  brands,   retailers,  suppliers,   nonprofits,  and  NGOs     •  Given  huge  impetus  by   Greenpeace  Toxics   campaign  in  2011/12  
  • 3. The  Sustainable  Apparel  Coali3on     Ambi3ous  2020  agenda  based   around:       •  Water  Use  &  Quality   •  Energy  &  Emissions   •  Waste   •  Chemicals  &  Toxicity   •  Social  and  Labour  improvements  
  • 4. The  Sustainable  Apparel  Coali3on     Tool  developed  and  being  trialled:  Higg  Index  1.0:       “An  indicator  based  tool  for  apparel  that  enables   companies  to  evaluate  material  types,  products,   facili3es  and  processes  based  on  a  range  of   environmental  and  product  design  choices.         The  Index  asks  prac3ce-­‐based,  qualita3ve   ques3ons  to  gauge  environmental  sustainability   performance  and  drive  behavior  for   improvement.”  
  • 5. The  Sustainable  Apparel  Coali3on     Pros:     •  Raises  bar  for  companies   •  Mechanism  for  dialogue  with   NGOs   •  Creates  collabora3on  and   sharing  for  new  tools,   processes  and  result  sharing   Cons:   •  What  about  all  those  non-­‐ branded  goods?   •  Does  it  just  increase  the  gap   between  the  leaders  and  the   rest?   •  Does  it  help  legal  enforcement   in  China,  India  etc?    
  • 6. Heathrow  Sustainability  Partnership   •  Established  in  2010,  trialled   in  2011   •  Partnership  brings  together   15  companies  including   airlines,  retailers,   construc3on  companies,   food  service  providers  and   car  rental  businesses  
  • 7. Heathrow  Sustainability  Partnership   •  15  companies  represent  75%  of  all   the  staff  working  at  Heathrow   •  An  employment  and  skills  academy   for  construc3on,  logis3cs  and   avia3on  established  in  its  pilot  year     •  Heathrow  now  boasts  the  world’s   largest  employee  car-­‐sharing  scheme  
  • 8. Business  for  Social  Responsibility/Forum  for  the  Future     Run  sector-­‐  and  issue  -­‐ specific  working  groups   and  ini3a3ves:  shipping   and  cargo,  coal,  water  and   procurement,  etc…      
  • 9. Business  for  Social  Responsibility/Forum  for  the  Future     Pros:     •  Gathers  leadership   groups  together  /  Peer   pressure   •  Helps  set  (policy)  agenda   •   Collabora3ve  learning   Cons:     •  Free-­‐rider  members  with   ligle  interest  in  changing?   •  Scale  and  teeth:  Can  they   evolve  and  grow?    
  • 10. Supply  Chain  Risk  Collabora3on:  Automo3ve   •  2013:  Aston  Mar3n  and  Jaguar   Land  Rover  teamed  up  with   Toyota  and  Achilles  (vendor)   •  Created  tool  to  map  their  supply   chain  networks     •  Seeking  areas  where  they  are   exposed  to  natural  disasters,  as   well  as  financial  and  reputa3onal   risks  
  • 11. Vodafone:  Turkey  Farmers  Club   Vodafone  Farmers'  Club  offers  special   rates  &  info  to  farmers     •  Mobile  tech  to  improve  incomes  &   increase  efficiency/sustainability   •    500,000  signed  up  to  the  Farmers'   Club  so  far.  Par3cipa3ng  farmers   have  increased  produc3vity  by  about   €100m  
  • 12. Vodafone:  Turkey  Farmers  Club   SMS  alerts  on:     •  Regula3ons,  financial,  weather     •  Market  price  quotes  linked  to  loca3on  and   produc3on     Partnership  with  Sekerbank:  Farmers  pay  mobile   phone  bills  post-­‐harvest     Benefits  to  Vodafone:  Customer  loyalty,  mass   revenue  streams  
  • 13. Conclusions  and  Future  Trends     •  B2B  collabora3on  driven  by   the  sheer  scale  of   sustainability  challenge     •  By  need  to  "normalise"   sustainable  behaviour  in   supply  chains  and    markets  
  • 14. Conclusions  and  Future  Trends     “Changing  every  product,  factory  and   raw  material  source  in  your  supply   chain  and  encouraging  every   customer  to  consume  differently   defies  the  ability  of  even  the  largest   business  alone”     (Mike  Barry,  Head  of  Sustainable             Business,  Marks  &  Spencer)  
  • 15. Conclusions  and  Future  Trends  (cont)   •  The  new  economy  will  also  be   horizontal,  not  ver3cal.  This   requires  new  alliances/ partnerships   •  Tradi3onal  barriers  between   industrial  sectors  will  break  down   as  a  circular  economy  forms  
  • 16. Conclusions  and  Future  Trends  (cont)   •  Expect  more  collabora3on  around   commodi3es.  No  single  business   purchases  enough  volume  to  shin  the   market  alone  (Palm  Oil,  Soy,  Cogon)   •  There  will  be  greater  collabora3on   around  waste  and  raw  materials.   One  company  will  seek  to  convert   waste  into  another  company’s  raw   materials  and  vice  versa  
  • 17. Conclusions  and  Future  Trends  (cont)   •  Technology  sector  is  also  likely  to   witness  greater  business  to  business   collabora3on   •  Mobile  phone  technology,  for   example,  can  offer  the  solu3ons  to   other  industrial  sectors’  sustainability   challenges.  Supply  chain   transparency  may  be  just  one  of   these  areas  
  • 18. Was  this  useful?  Would  you  like  the  video  version?   Then  sign  up  for  updates  and   informa3on  on  our  online   training  courses  at:   hgp://g2g-­‐training.com   Courses  on  Repor3ng,   Communica3ons,  Supply  Chain,   Community,  Risk  and  Materiality   management  also  available  soon   This  presenta3on  is  from  our   “Ge?ng  to  Grips  with  Corporate   Responsibility”  Eight  module   online  course.     The  next  one  starts  on  March  24   2014.  Sign  up  here:   hgp://g2g-­‐training.com/ course1.php