Post on 17-Jul-2020
The Chemical Initiative for Sustainable Supply Chains11/7/2014Slide 1
Global Sustainability Challenges & Sustainable Supply Chain Solutions
TfS Event ShanghaiOct.22nd, 2014
Speaker: Hannah RouthDirector, Sustainability & Climate Change, PwC China
www.pwc.de
PwC
Content
1. Introduction to PwC Sustainability and Climate Change
2. Sustainability trends for business
3. Implementing Sustainable Supply Chain Management
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PwC
Sustainability and Climate Change PwCPwC is a worldwide leader in sustainability services supported by a Network of Excellence
Corporate Responsiblity
Strategy & Management
Supply Chain Management
Climate Change & Water
Management
SustainabilityReporting
• 15+ years experience in Sustainable Business Solutions
• 40+ Offices worldwide
• 700+ Sustainability Experts worldwide
• More than 50% of Fortune100 & DAX30 companies are our customers
• Lived responsibility due to own CR-Program (e.g. PwC Sustainability Report)
• Secretariat for TfS programme
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Sustainability trends in business
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Sustainability Trends Global megatrends are shaping the way we do business
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Demographicshifts
Shift in global economic power
Accelerating urbanisation
Climate change and resource scarcity
Technologicalbreakthroughs
Companies who recognise and understand these trends will have a competitive advantage in the long term
PwC
Sustainability Trends Companies are facing higher stakeholder expectations today
Companies are expected to identify their core sustainability issues, systematically tackle these issues and communicate their activities transparently to stakeholders
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CO²
Energieverbrauch
KonsumentenAnforderungen
Reputation
Kosten
Supply Chain
Stakeholder Dialog
Human Capital Development
Nachhaltige Produktion
Negativer Einfluss durch Geschäftstätigkeit
Strategie-entscheidungen
Sustainable Supply Chain
Shareholder/InvestorenAnforderungen
Gesetzliche Anforderungen
Klimawandel Integrität Globalisierung Soziale ThemenRessourcen-knappheit
Unter-nehmen
Work life Balance
Frauenförderung
War for Talent
Arbeitssicherheit
Menschenrechte
Ökonomisch
Ressourcenverbrauch
Korruption
Demographic change
Globalisation Urbanisation IntegrityClimatechange
Technological change
CorruptionReputation
Strategic DecisionStrategic Decision
Legal Requirements
CostsEconomic
Stakeholder/Investor Requirements
Consumer Requirements
Stakeholder Dialogue
Human Rights
Occupational Safety
Community involvement
Sustainable Production
Resource consumption
Energy consumption
Negative Influences of Business Activities
Business
Case study - Bayer Materiality Matrix
Case study - Sinopec Materiality Matrix
PwC
Sustainability Trends Beyond regulatory compliance, Sustainable Supply Chain Management provides companies with new business opportunities
Sustainable Supply Chain Management supports risk management and provides new opportunities to realise competitive advantage
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new products labelled for their sustainability performance over the
whole life cycle, supporting the sustainability requirements of our
customers.
PwC
Sustainability Trends Sustainable Supply Chain Management can secure long-term business benefits
Sustainable Supply Chain Management
Increase Efficiency Promote Innovation
• Comply with consumers‘ and business partners‘ expectations
• Introduce new products andprocesses
Manage Risks
• Reduce negative environmental and socialimpact of businessoperations
• Avoid damage to businessreputation
• Reduce costs for rawmaterials, energy, water, transport
• Increase productivity• Increase efficiency between
supply chain actors
Case study – BASF’s sustainable supply chain management practices
9
PwC
Sustainability TrendsA remarkable rise of voluntary sustainability standards and certification systems has emerged in the past twenty years
1990 1995 2000 2005 2010
EU Ecolabel - Non-
Food (1992)FSC - Timber (1993)
Fairtrade – Food/Non-
Food (1994) MSC- Fish
(1997)PEFC - Timber
(1997)ETP - Tea
(1997)
WRAP - Textile
(2000)4C –Coffee
(2002)RSP – Palm Oil
(2004)CmiA - Cotton
(2005)
RJC - Jewellery (2009)
ICTI -Toys (1975)
ISO 9000– Quality Management System
(1987)
ISO 14001 –Environmental
Management System (1996)
GRI – CR-Reporting
Standard (1997)SA8000 – Social
Management System
(1997)OHSAS –
Occupational Health & Safety Standard
(1997)
ISAE 3000 – Reporting Standard (2000)
ISO 26000 – CR-
Management Guidance
(2010)ISO 50001 – Energy
Management System
(2011)
Product Standards
Management- /Reporting Standards
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Sustainability TrendsIn parallel, a large number of initiatives have evolved and developed their own Supply Chain Standards - TfS is one of them
Responsible Care: Chemicals Industry(1984)
ETI: Ethical TradingInitiative (1998)
BSCI: Business SocialCompliance Initiative
(2002)
ICMM: International Council on Mining andMetals (2001)
Equator Principles : Banking Sector(2003)
CSI: CementSustainability Initiative
(2001)
1990 1995 2000 2005 2010
Business Intiatives
MultistakeholderCooperations
FLA: Fair Labor Association (1999)
TfS: Together forSustainability (2011)
GSCP: Global SocialCompliance Program
(2006)
RTRS: Roundtable on Responsible Soy
(2006)
RSB: Roundtable on Sustainable Biofuels
(2006)
PCSI: PharmaceuticalSupply Chain Initiative
(2006)
EITI: ExtractiveIndustries TransparencyInitiative (2002)
EICC: Electronic Industry Citizenship
Coalition (2004)
GeSI: Global e-Sustinability Initiative
(2001)
RSPO: Roundtable on Sustainable Palm Oil
(2004)
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Implementing Sustainable Supply Chain Management
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Implementing Sustainable Supply Chain ManagementEvolution of key Supply Chain Instruments, including sector solutions
• Stakeholder opinion gains increasing importance
• Codes of Conduct
• SelfAssessments
• Internal audits
• Multistake-holder-approaches
• External Audits
• Cooperation with suppliers/ competitors
• Investment in supplier days/ training/im-provement measures
• Transparency& Traceablity
• Cradle-to-CradleApproaches
• SectorSolutions
1990 … … … 2014
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Retail & Consumer
“How can we offer sustainable products at a price that customers are willing to pay? Whichsuppliers offer a good product quality and comply with key labour and environmental standards?“
1
Chemical Industry
“We have more than 80.000 suppliers worldwide. Based on which criteria can we best identifyhigh risk suppliers? How can we influence the sustainability performance of our strategicsuppliers?“
2
Automotive Sector“Our stakeholders are concerned since some raw materials are sourced from crisis regions. How can we transparently prove where these raw materials come from? How can we integrate sustainability standards into our traditional procurement criteria such as price and quality?“
3
Implementing Sustainable Supply Chain ManagementSector specific challenges
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Implementing Sustainable Supply Chain ManagementMajor elements to consider
Sustainable Business
Sustainability Strategy
Integration at Management
Level
ManagementSystems
Reporting Stakeholder
Management
MaterialityProcess
SupplierManagement
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Implementing Sustainable Supply Chain ManagementAn internal risk management system supports in fulfilling client and regulatorydemands
Source: OECD Due Diligence Guidance, December 2010.
1. Building an internal management system
2. Identifying and assessing risks
3. Defining a risk reduction strategy
4. Implementing independent audits /
measures for improved supplier performance
5. Reporting on management system and
due diligence
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PwC
Thank you for your attention!
Hannah RouthDirector, Sustainability & Climate Change, PwC China
Phone: +85 2 2289 2968 E-Mail: Hannah.Routh@hk.pwc.com
Michael WernerPartner, Sustainability Services, PwC Germany
Phone: +49 30 2636 4378E-Mail: Michael.Werner@de.pwc.com
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PwC Contact Sustainability Services