ecovadis webinar featuring brownflynn - scaling up sustainable procurement (barometer 2017...
TRANSCRIPT
Document Classification: EcoVadis Public
Scaling Up Sustainable Procurement A New Phase of Expansion Must Begin
Webinar - March 2017
Document Classification: EcoVadis Public
Presenters
Pierre-François ThalerCo-CEO
EcoVadisSustainability Ratings for
global supply chains
Barb BrownCo-FounderBrownFlynn
Sustainability consulting, experts in reporting frameworks, GRI certified
trainers
1. Introductory perspective – Barb Brown
2. Highlights from 2017 EcoVadis / HEC Barometer – Pierre-François
3. Selected case examples and insights – Barb Brown
4. Q&A session
Agenda
Document Classification: EcoVadis Public
Investors Evaluate Sustainability Management
Investors pressure large public companies, who in turn share
the pressure of responding upstream to suppliers
“…we are convinced that addressing ESG issues is a good
business practice and must be part of effective board leadership and oversight of long-term strategy..”
- Ron O’Hanley, President & CEO, State Street Global Advisors
“At companies where ESG issues are handled well, they are often a signal of operational excellence”
- Larry Fink, CEO BlackRock
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Supply Chain Developments
Sustainability Surveys IBM Airbus Kaiser Permanente Siemens Marathon Oil British Telecom Boeing Ingersoll Rand Volvo United States Postal Service Wal-Mart BMW Johnson Controls
Sustainability Training Nike Puma Apple AT&T, Inc. Mattel Bristol-Myers Squibb Campbell’s Intel
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Poll question
How would you rate the maturity of your SustainableProcurement program?
• Have not started yet
• Have started recently monitoring supplier CSR risk
• Have increased coverage and set CSR targets for buyers
• Have gone beyond tier 1, CSR is part of supplier scorecard
Document Classification: EcoVadis Public7
Highlights from 2017 EcoVadis / HEC Barometer
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Summary
Our main survey’s population
• 75% based in Europe.
• 25% from France
• 18% from the UK
• 12% from the US
Companies with annual revenues of at least 500 million
• 42% companies with 5 billion and 25 billion
• 25% were above 25 billion
• 34% under 5 billion
Responses were spread across industry sectors
• Manufacturing sector (14 %)
• Retail & consumer goods (13 %)
• Services (12 %)
• ICT/telecommunications (9 %)
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Procurement Priorities
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When comparing to our 2013 study, this year we see a
convergence between the US and Europe on the same top
three drivers and priorities for SP programs: Brand
Reputation, Risk Mitigation, and Compliance.
Sustainable Procurement Drivers
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“ Multi-tier visibility and traceability to the origins of
our supply chains and transparent reporting on this to our stakeholders is rapidly becoming a requirement for
us”.
Top 5 Pharmaceutical Company
Global Supply Chain Coverage Expands Drastically
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“ Auditing and SAQs have created fatigue.
Furthermore, these exercises are not producing our
desired results. We are decreasing the volume and
optimizing the quality of our audit program.”
Top 20 Industrial Conglomerate Company
Sustainable Procurement Tools
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Exec support, but lacking internal resources
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“ I do believe in the correlation between sustainability and innovation. When a supplier
demonstrates their commitment to CSR, they are demonstrating
their ability to look forward - that they have a long-term vision. I think this is fundamental to the
capacity for innovation.”
Top 5 Beverages Company
SP Leaders - New and Enhanced Benefits
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How do you engage your supply chain to drive improvements on sustainability issues?
• Compliance and contract terms
• On-site audits and/or sustainability assessments
• Set performance targets with recognition and/or incentives
• Collaborate on improvement plans and/or education on CSR
Poll question
Document Classification: EcoVadis Public
“ I believe that supplier engagement and awareness
campaigns can only be successful if all parts of the business that interact with
suppliers are aligned, otherwise you are destined to send mixed
messages that will put your level of commitment in question.”
- 10 Medical Equipment Company
Supplier perceptions and engagement
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✓ Ensure the quality of external reporting on supply chain & supplier performance
✓ Stay the course: It may take five or more years to reach upside returns from your SP program.
✓ Find tools that will scale for increased program coverage and depth
✓ Stay in sync with supplier perceptions and the efficacy of engagement methods.
Barometer conclusions & Recommendations
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Best Practice
Cisco has a human rights policy and states,
“Cisco upholds and respects human rights ascontained in the United Nations UniversalDeclaration of Human Rights (UDHR), the eightCore Labor Conventions developed by theInternational Labor Organization (ILO), the UnitedNations Global Compact (UNGC), and the UnitedNations Guiding Principles on Business and HumanRights.”
https://csr.cisco.com/cdnorigin/media/documents/Human-Rights_129973805781330000.pdf
Policies Endorsement Actions Coverage Certifications Reporting Document
Human Rights Policy
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Best practice
General Motors demonstrates its commitment tothe United Nations Global Compact by includingan index of UNGC-related content within itssustainability report.
http://www.gmsustainability.com/reporting/ungc.html
Policies Endorsement Actions Coverage Certifications Reporting Document
GM Commitment to UN Global
Compact
Human Rights
Environment
Labor Standards
Anti-Corruption
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Best practice
Policies Endorsement Actions Coverage Certifications Reporting Document
Forest City has employee resource groups inplace to support their goal of increasingdiversity.
They also survey employees on theirengagement levels and measure promotions byindividuals who are members of resourcegroups.
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Best practice
Policies Endorsement Actions Coverage Certifications Reporting Document
Texas Instruments provides evidence thatactions taken to meet their energy efficiencygoals are disseminated throughout the company.
Their energy champions at each facility ensurethat a master list of best-practice sharing is keptup-to-date.
http://www.ti.com/corp/docs/company/flipbooks/2016/citizenship/?HQS=corp-cit-null-ccr2015-pr-ebook-null-wwe
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Best practice
Policies Endorsement Actions Coverage Certifications Reporting Document
As we work to reduce our footprint throughout thevalue chain, we rely on external certificationsystems to validate our procedures and guide ourcontinuous improvement plans.
Our Gebze, Turkey; Zhejiang, China; and Haverhill,U.K., facilities achieved this certification in 2015 orearly 2016.
Certificate
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Best practice
Policies Endorsement Actions Coverage Certifications Reporting Document
Reynolds American reports KPIs through its annual sustainability report.
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Q&A
Coming up: EcoVadis conference "SustaIn" is the annual event dedicated to supply chain sustainability, bringing 400 around 400 sustainability and procurement professionals
http://www2.ecovadis.com/sustain-2017
Document Classification: EcoVadis Public25
David McClintockMarketing Director, [email protected]
Barb BrownCo-founder [email protected]
Thank you!