Recently in Supply Chain Sustainability Category

The Conference Board has published a paper in its Executive Action series, Company Approaches to Green Products and Services: What's Working and What's Not. Unfortunately, the document is available only to Conference Board members, but they've been nice enough to share a copy with me, so I'll provide some highlights.

The report written by Bill Blackburn, a Conference Board Senior Research Fellow, is a primer on green products, from basic definitions to explanations of life cycles to the basics of green marketing.

Blackburn knows from where he speaks: The former head of environment at Baxter International, he is author of The Sustainability Handbook, an authoritative reference for environmental managers. Blackburn's insights are complemented by the findings of a research panel, whose members include Aveda, Coca-Cola, J.C. Penney, Xerox, and others.

According to Joel Makower in Two Steps Forward,   the "best practices" Blackburn suggests include:

• Train and periodically update the company's design and marketing workforce, including their management, on the social and environmental issues and trends that are relevant to the company and the type of products and services it offers.
• Consider the issues and trends relevant to suppliers, wholesale customers and end consumer.
• Support two-way communications to ensure marketing reconnaissance and feedback from other key stakeholders and information sources are shared.
• Stay up to date on green product and service successes and failures of other companies, especially peers.
• Inventory current products and services to see which ones may be considered green.
• Identify potential areas where developing new green products or services might be productive; involve outside experts and/or new personnel to help stimulate the discussion.
• Periodically evaluate your progress in greening and promoting your products and services, and how well they stack up against the competition.

SAS, the leader in business intelligence, is helping organizations accurately measure and manage their environmental impact. Today's announcement of SAS® for Sustainability Management introduces the first decision-support software platform for proactively identifying innovative strategies that effectively address complex environmental, social, and economic situations while achieving stakeholder objectives.

"While most executives agree that a green strategy is a good idea, few know how to value or prioritize their initiatives," said Kimberly Knickle, Practice Director, Emerging Agenda, Manufacturing Insights, an IDC company. "They struggle with the business case, waiting to implement strategies until outcomes can be predicted more reliably."

According to a McKinsey survey [1] , environmental issues including climate change top the agenda in executive suites worldwide. But measuring and managing environmental impact is difficult, intricate work that stretches across an organization's operations.

Causal relationships connecting issues such as greenhouse gas emissions, use of scarce resources, ethical sourcing and regulatory compliance make it extremely complex to invest in green technology and expand sales of products and services with measurably better environmental performance.

"Lessening our impact on the environment and mitigating the future risk of depleting our planet's natural resources is becoming a priority in shaping every organization's strategy," said Jim Goodnight, CEO of SAS. "With SAS, organizations can optimize business strategies for minimizing risks and costs, developing new lines of business, and improving resource use, environmental or otherwise."

Cisco is using SAS to support its sustainability efforts. "Cisco believes that new innovative technologies and the power of collaboration are keys to achieving our sustainability goals and minimizing our impact on the environment," said Laura Ipsen, Co-chair of Cisco's EcoBoard and Senior Vice President of Cisco Global Policy and Government Affairs. "By partnering with SAS and utilizing SAS for Sustainability Management, Cisco can better prioritize projects and resources that create a positive return for the environment, shareholders, and our employees. The SAS solution will enable us to simulate the impact on carbon footprint, waste reduction targets, greenhouse gas emissions and other goals so we can more effectively predict and manage the impact of our operations on the environment."

SAS for Sustainability Management, based on the SAS Enterprise Intelligence Platform, uses the Global Reporting Initiative framework to report on Triple Bottom Line indicators. These indicators relate to the three spheres of sustainability – environmental, social, and economic, using SAS' predictive abilities to validate strategies, identify causal relationships, forecast improvement scenarios and drive innovation. The SAS Corporate Social Responsibility Report (PDF) conforms to the Sustainability Reporting Guidelines developed by the Global Reporting Initiative.

MISSISSIPPI BARGE TRAFFIC DOWN YET AGAIN IN 2007 — 18-Year Downward Trend Undercuts Congressional Plan to Build Bigger Locks

Barge traffic on the Upper Mississippi River and Illinois Waterway continued an 18-year downward trend through 2007, according to the latest U.S. Army Corps of Engineers figures compiled and released today by Public Employees for Environmental Responsibility (PEER).

Despite this long, steep decline in demand for barge transportation, Congress brushed aside a veto to make expansion of the lock system on these rivers one of the centerpieces of its new Water Resources Development Act.

The question now is whether Congress funds the $2 billion lock expansion plan that it authorized. The Water Resources Development Act authorized some 940 projects that would cost a total of approximately $23 billion to complete. The Upper Mississippi Lock project is the second largest project in that bill, behind the multi-year Everglades “restoration” effort.

Large, cumulative and sustained decreases in barge traffic have occurred at every Upper Mississippi River and Illinois Waterway lock, with the most heavily utilized locks experiencing an average 36 percent traffic reduction since the Corps and its boosters began advocating for lock expansion back in the early 1990s. This downward trend is likely to continue as the leading barge line forecasts even lower grain traffic in coming years; barge demand in the region consists primarily of grain and other agricultural products.

“Traffic is so sparse that the Corps does not even bother to schedule the barges to minimize congestion,” stated PEER Executive Director Jeff Ruch. “The Upper Mississippi lock expansion is the poster child for pork barrel myopia in Congress.”

This project has been steeped in controversy since 2000, when the Corps’ own lead economist on the project, Dr. Donald Sweeney, filed an explosive whistleblower disclosure documenting how top Corps commanders had grossly manipulated the cost-benefit study used to justify the project. This scandal triggered a battle about how to “reform the Corps” which was a major factor in holding up subsequent Water Resource Development Acts until late 2007.

Nonetheless, the Corps ultimately endorsed the lock expansion but, in response to scathing critiques from the National Academies of Science and other authorities, promised to correct its economic models to eliminate systematic biases favoring construction. Its revised study on the Upper Mississippi project is still not completed.

“When it comes to public works, Congress and the Corps are two addicts who feed off each other,” added Ruch, whose organization represented Dr. Sweeney. “As we did with military base closures where it was recognized that corrosive parochial politics could not be controlled, we need an independent national commission to rank our infrastructure priorities.”

SOURCE:

Public Employees for Environmental Responsibility
Date: January 15, 2008
Contact: Carol Goldberg (202) 265-7337

Jason McCormick with Conscientious Innovation, wrote the following in response to a recent blog story:

We’ve done the research (including a super recent 5,000 people study of what people think of this thing called ’sustainability’ - April, 2008), we know that people rate Global Warming and Pollution as important sustainability issues. But it didn’t top the list. Personal and social sustainability issues such as connecting with community and leading balanced life leapfrog environmental issues.

As one of the respondent from an early round of focus groups said’ How can i look after the environment, if i can’t look after myself??’.

His company focuses on brand development for a wider range of issues than "green" or "environment."

What we’re seeing right now is a lot of what we call “knee-jerk green marketing” and it’s a big mistake. Companies are jumping on the green bandwagon because they think that’s the only way to get on the sustainability wave. What’s dangerous is that it’s leading to a lack of authenticity because it’s often done indiscriminately and without rigor. When brands make vague, philosophical claims about their pro-environment values, but don’t support them with specific, observable actions, it diminishes the eco story for everyone and begins to spark a backlash.

He's right...what we're seeing is a lot of concerned parents who are also business people getting concerned and seeing both the opportunity for healthier community for themselves and their families...and the greening of their bottom line to keep up with the highly publicized shift toward greener products and processes.

Many people think "green" is simple.  The consumer media makes it look that way.  "Just change your lightbulbs and convert to biodiesel."  And all will be better.  "Don't get overwhelmed.  Keep it simple. Think green."  But business greening is more complicated and like Jason says, it must be a metamorphosis of core competency  -- much like the caterpillar turns into a butterfly.

Greening a business involves training the employees; changing the products from gas-guzzlers and energy-hogs to ever greater efficiency in design and production; optimizing operations; optimizing the fleet of transportation used both by the company and the employees...and more.  Saving water.  Saving the air.  Saving natural resources.  We rely on nature's bounty for the source of everything that keeps us alive and busy at work -- and greening is that integrated into how we do business.

So if you want to do the green thing...think green, educate yourself, and take it a step at a time.  But get started because the future will leave you in a dusty barren wasteland if you don't.  That's the growing future for much of the earth.  (That's not meant to be an exaggeration.  Desertification of arable lands is a growing problem for many nations...)

Green purchasing is often referred to as environmentally preferable purchasing. It’s the selection and acquisition of products and services that minimize environmental impact throughout the course of the manufacturing, transportation, use, and recycling or disposal lifecycles.

Supply Management

As the core of the inbound supply chain, supply management plays a vital role in finding green opportunities. However, putting them in context can be difficult.

PLUS Sustainability

A good reference point for any organization is to first understand what elements fall under the sustainability umbrella. Here are some of the greatest opportunities with which supply management can help their companies:

• Switching from toxic to nontoxic substances
• Water reuse in manufacturing of supplied products
• Air emission and hazardous waste reductions
• Supplier energy efficiency

Lean + Pollution Prevention + Environmental Initiatives

The Green Supply Network (GSN)-a joint effort of the U.S. Environmental Protection Agency (EPA), the U.S. Department of Commerce, the National Institute of Standards and Technology, and the Manufacturing Extension Partnership Program-took the proven principles of lean and merged them with pollution prevention and the EPA’s environmental initiatives.

GSN’s marriage of clean initiatives to the principles of lean provided the following lessons learned:

• Optimizing material use for less scrap yields reduced solid waste.
• Reducing inventory for less chemical spoilage equates to reduced hazardous waste.
• Reducing overproduction means less run time and an energy savings.
• Less transportation means a reduction in fuel consumption, which reduces air emissions.

Read more about GREEN PROCUREMENT and SUPPLY CHAINS