building a strategy for environmental sustainability sample

Building a Strategy for Environmental Sustainability

Copyrighted Material 2008: Insight Sourcing Group and Quantum Six Solutions, Inc.

All rights reserved.

Contact details



Sample page 2

For more information on this course or others,

contact

Julie Brignac

+1 305 890 9078

[email protected]

Copyrighted Material 2008: Insight Sourcing Group and Quantum Six Solutions. All rights

reserved.

Executive Summary

• Our value proposition is to bring expertise to companies who wish to drive an environmental sustainability program

• We offer this in two dimensions– Holistic operational approach– Sustainable sourcing approach

• Holistic operational approach supports the company with Sourcing and LeanSigma expertise to structure and implement a comprehensive program for all functions, including strategy, goals, program management, financial modeling, metrics and reporting

• Sustainable sourcing approach focuses solely on what the sourcing function can implement to source more environmentally friendly


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Agenda

• Introduction and purpose

• Where to start

• Organizational alignment– Establishing the infrastructure– Strategic objectives– Accountability

• Program management


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The “Green” Perception

True or False

Green Sourcing is more expensive for an organization.

There are limited suppliers from whom an organization can source green.

The payback from sourcing green is too long.

T F

T F

T F


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Purpose

This guide focuses on

– Strategy development and organizational alignment for driving profitability through the implementation of environmentally sustainable measures

and,

– Adapting your organization’s sourcing function – a key driver for environmental sustainability success – to drive solutions that link to the new strategy


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Why Bother?

• Alignment is key to ensure the agreed upon principles are embedded in the organization

• Every company has a strategy with key strategic objectives– The environmental sustainability effort needs to be aligned

with this to ensure:• Proper number of resources are assigned to obtain results fast so

that initial resistance to change is eliminated• Support from the leadership is apparent throughout the

organization

• Clarity also is needed to define program ownership, employee accountability, incentives and consequences for non-compliance or lack of ownership


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Driving Alignment

1) Define environmental sustainability and what it means for your organization– Agree among the executives what environmental

sustainability means for your organization

2) Document the vision and strategy in an environmental policy– Build the policy centrally, but implement it locally– Share internally

• To be referenced by the executive team• Include the organization’s goals and objectives for environmental

sustainability– Share externally

• A usable document for customers to reference and suppliers to abide by

• Defines the parameters on doing business in a sustainable way


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The 4th Sourcing Element

Cost Availability Quality EnvironmentallySustainable

Sourcing to sustain the environment is equally important as ensuring

the appropriate balance of cost, availability and quality.

Ensure your environmental policy emphasizes these 4 key elements as mandatory.


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Establishing Sustainable Sourcing Practices

• Two elements are crucial to sustainable sourcing success– A strong, established procurement group– Collaborative supplier relationships

• Sustainable cannot be a stand alone effort without already established procurement practices– Why? The organization must have value for

strategic sourcing in order to value green sourcing


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How do I find these suppliers?

• Look for industry certifications– ISO 14000– LEED– Energy Star®

– Commodity specific groups• Forestry Stewardship Council• Chemical Industries’ Responsible Care® Program

• Or, develop them

How our team can help



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• Strategy design– Draft and support environmental strategy

implementation for the organization, as well as for the procurement function

– Review your organization’s specific commodities and suggest top level sustainable goals

– Provide a draft environmental policy or assist with its development and implementation

• Process Mapping– Provide resources to lead or support the process

mapping– Document and communicate the analysis– Facilitate the cross-functional improvement process


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Sustainable Sourcing

– Your company must have a strong procurement organization established before starting a focused environmental sourcing effort

– Determine what gives your organization a competitive edge through sustainable sourcing

– Sustainable sourcing requires a process analysis and implementation

• Use existing resources to identify the opportunities

Environmental sustainability will integrate into your organization’s

operational thinking

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