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  

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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