Transcript Powerpoint: Global Compact Update on Supply Chain Sustainability

PRME Webinar on
Supply Chain Sustainability
7 June 2013 – 10:00 AM EDT
Questions
Technical Difficulties: If you have
technical issues, please let us know
by typing a message in the
Questions pane (A). You can raise
your hand (B) if we do not respond.
Q&A: We will be taking questions on
content at the end, but you can send
them to us throughout the webinar
by using the Questions pane (A).
Please specify to whom the question
should be directed.
B
A
Agenda
Introduction to PRME
Jonas Haertle, Head, PRME Secretariat
Introduction to Supply Chain Sustainability
Anita Househam, Issue Manager, Supply Chain Sustainability, UN Global Compact
Members of the Advisory Group on Supply Chain Sustainability
• TRACEABILITY: Peter Perrault, Lead Consultant, Infosys Sustainability
• ANTI-CORRUPTION: Cecilie Hersleth, Legal Manager, Business Assurance, Telenor
Proposal for Collaboration
Mads Øvlisen, Chair, UNGC Advisory Group on Supply Chain Sustainability
Q & A: Remaining Time
Principles for Responsible Management Education
(PRME)
•
Launched in 2007, UN-backed initiative to change the
curriculum, research and learning methods of management
education based on UN Global Compact/ Corporate
Sustainability approach
•
Leading global platform for open dialogue and collaborative
learning on responsible management and leadership education
•
The Six Principles of PRME are inspired by internationally
accepted values and seek to establish a process of continuous
improvement among institutions of management education
•
2012/2013: Introduction of PRME Regional Chapters and PRME
Champions group
•
495+ business schools/ management-related academic
institutions and universities from 80+ countries
PRME Working Group Projects & Reports
Anti-Corruption
in Curriculum
Change
Poverty, a Challenge for
Management Education
Gender Equality
UN Global Compact
-
Supply Chain Sustainability
Supply Chain Sustainability
rd
3 Advisory Group Meeting
- An Introduction
7 June 2013
Mexico City, Mexico
2-4 March 2011
Anita Househam, Issue Manager, Supply Chain Sustainability
Purpose – Bringing it Together
The UN Global Compact Advisory Group on Supply Chain
Sustainability
•
•
•
•
•
•
•
•
•
•
•
•
A.P. Moller—Maersk (Denmark)
ArcelorMittal (Global)
Boyner Holding (Turkey)
BSR (Global)
Cemex (Mexico)
Cisco Systems Inc. (USA)
Det Norske Veritas AS (DNV)
(Norway)
Ford Motor Company (USA)
Hitachi, Ltd. (Japan)
Inditex S.A. (Spain)
Infosys Technologies Ltd (India)
Innovation Norway (Norway)
•
•
•
•
•
•
•
•
•
•
•
Mahindra & Mahindra Limited
(India)
Nestlé S.A. (Switzerland)
Nokia (Finland)
Reed Elsevier Group plc (UK)
Restaurantes TOKS (Mexico)
Safaricom Limited (Kenya)
Sedex (UK)
Social Accountability
International (SAI) (Global)
Arche Advisors (USA)
Telenor Group (Norway)
Volkswagen Aktiengesellschaft
(Germany)
Tools and Resources
Supply Chain Sustainability A Practical Guide for Continuous Improvement
 Launched June 2010
 Practical guidance to develop a sustainable supply chain
programme
 Features numerous good corporate practices and other
initiatives
 Based on the values and principles of the UN Global
Compact
 2011: Developed SME Quick Guide: Supply Chain Sustainability –
A Practical Guide for Continuous Improvement for Small and
Medium Enterprises
Tools and Resources
Website: Sustainable Supply Chains – Resources and
Practices
 ‘One-stop-shop’ for
business
 Includes information about
sustainable supply chain:
• Initiatives
• Resources
• company practices
 Articles searchable by issue
area, sector, region and
practice category
 Register and submit articles
http://supply-chain.unglobalcompact.org/
Tools and Resources
Quick Self-Assessment & Learning Tool
 Launched June 2012
 Identify strengths and areas of
improvement
 Benchmark your company’s
approach
 Scorecard with benchmarking
results and recommendations
 References to additional
resources, company practices
and initiatives
http://supply-chain-selfassessment.unglobalcompact.org/
Additional initiatives/work areas
 Promote Good Practices
• Webinar Series
• Good Practice Notes (in collaboration with HRWG)
• Note on Occupational Health & Safety (in collaboration with Better
Work/ILO/IFC)
• Engagement with Global Compact Local Networks
 Issue Specific Activities
• Practical Guide on Supply Chain Traceability – initial stages
• Stand Together Against Corruption –A Practical Guide – final stages
• Occupational Health & Safety - emerging
An Overview of the
Traceability Task Force
Peter Perrault
Lead Consultant, Infosys Sustainability
Process
1. Research & Consolidate Resources
2. Analyze & Define Key Issues
3. Survey AG and Conduct In-Depth Interviews
4. Incorporate Findings and Revise Scope
5. Finalize & Present to AG
6. Phase II Recommendations
Review of Completed
Research
Inputs from BSR, Infosys, Nestlé, Sedex, and UNGC;
More than 40 sources covering 20+ sectors
•Early findings:
• Overarching categories: Human Rights, Labor, Anti-Corruption, Environment –
strong interrelationship among issues
• Prioritization and approach are key questions for firms
• Highly driven by industry, sector or commodity; a/o by phase-specific activities
• Existing policies/regulations may assist in reporting guidelines
• Broader goal to enhance transparency and collaboration to understand
impacts – traceability doesn’t inherently mean physical tracing
•Existing definitions: ISO 8402 (ISO 9000)
•Existing Standards & Initiatives Include:
Forestry
Stewardship
Council (FSC)
Can-Trace
Better Cotton Initiative
(BCI)
GS1 Traceability
Standard
The Produce
Traceability Initiative
(PTI)
UTZ Certified
Fair Trade Certified
Marine Stewardship
Council
Survey Findings
Combined Bar Chart Ranking
Issues of Importance for Respondents’ Company (12 respondents)
Interview Findings by
Commodity
Wood
Cocoa
Minerals
Companies Interviewed:
•IKEA
•Staples
•Tetra Pak
•B&Q
Companies Interviewed:
•Nestlé
•Mondeléz (TBC)
•Mars (TBC)
Companies Interviewed:
•Ford
•Volkswagen
•Hitachi
•Telenor
Combination of strong legal
requirements & strong global,
collaborative traceability
scheme makes traceability a
worthwhile strategy
Companies aim to:
•Secure supply/improve farmer
practices
•Address key labor issues –
child labor and slavery
Dodd-Frank and potential
European legislation affect
companies’ need to ensure
their products are conflict-free
Timber traceability is wellestablished, and the
companies interviewed have
been engaged in this process
for a long time
Alternative strategies:
•direct purchase of cocoa
•invest in farm communities
•support collaborative
programs, e.g. – ICI; focus on
farm level capacity building
and training
•Leverage existing labeling
schemes, e.g. – Fair Trade
Highly visible topic with much
media attention
EICC/GeSI Conflict-Free
Smelter Program currently the
most established program;
does not affect all sectors
Firms are early in the
development process
Interview Findings: Where
Traceability Works
1) Value of the Commodity to the Business
• Commodity being traced is of significant value to the business and for which the
business is known
• IKEA and wood – they are ‘the biggest buyer of wood in the world’
2) Legal Requirements
• Company is subject to legal requirements
• e.g. - The Lacey Act [wood]; The Dodd-Frank Act [minerals]
• There is often an existing, recognized, collaborative global initiative companies can
join (FSC, EICC/GeSI CFS program)
3) Operational Benefits
• Operational efficiencies/benefits make traceability useful and cost effective over
time, such as:
• Deeper understanding of the supply chain
• Ability to identify more/better sources of product to avoid disruptions
• Reputational benefit
Collaborative Global Scheme
Shaping an Effective
Traceability Program
Standard/certification for:
• Source
• Chain of custody
• Processes of direct
suppliers and brand/
company
Conduct audits
Provide Data Store
Brand/
Company
•
•
•
•
•
First tier/direct
suppliers
Strong internal policy & collaborative scheme
Buyers must adhere to policy
Top management support
Integrated procurement processes
Resources dedicated to implementation
•
•
•
Second tier and below; indirect
suppliers
Raw material source
(Farms, forests, mines)
Must certify to required scheme
Must document proven chain of custody
Subject to audits
•
•
Certified as part of chain of custody
Subject to random audits by relevant
certification bodies
•
•
Certify source/site of raw material
Subject to regular audits
Phase II Recommendation:
Develop 3 Part Guide
1. Diagnostic Tool
What is my organization trying to
achieve?
What do our stakeholders
want/need?
2. Assessment of Options
What options are available?
When is traceability the appropriate
strategy?
3. How to Pursue Traceability
How do you put in place a traceability
program?
What resources are available –
general or commodity-specific?
Anti-Corruption – A Practical Guide
PRME Webinar on Supply Chain Sustainability, 7.6.2013
Cecilie Hersleth, Legal Manager, Business Assurance
1. Introduction - Aim of our work
•
•
•
•
22
Cooperation
Best practise sharing
Networking
Developing useful tools and guiding documents
UNGC Task force
23
•
A practical guide with
operational guidance on
managing anti-corruption,
focused specifically on the
supply chain
•
•
Short, basic and inspiring
•
Preventive day to day work
Supplementary to other UNGC
documents
What does the new Guide
include?
•
Examples of corruption in the
supply chain
•
Main elements of an efficient
anti-corruption program
•
Preventive corruption
activities towards suppliers
• Company examples
• References to other UNGC
documents
24
Thank you
Proposal for Collaboration
 Incorporating the sustainability agenda in the supply
chain management curriculum
 Brief note for academics
 Platform for existing tools, curricula, publications etc
 Template workshops for academics
 Understanding supply chain sustainability, impacts and
needs
 Analysis of GC participants on management of SCS
 Case Studies
 Research on potential impacts of existing tools/resources
 Contribution to existing activities of the Advisory Group
 Analysis of Traceability and social auditing systems
 Case studies
Thank You
Thank you for joining us today.
Presentation slides and a recording of the webinar
will be available on the PRME website.
If you have any additional questions, please contact:
Anita Househam: [email protected] (UNGC)
Magdalena Thurig: [email protected] (PRME)