The Economic Case for Sustainable PracticesSession AB

Session Outline

• Introduction of topic, moderator & panelist

• Panel Discussion

• Audience Q&A

The Economic Case for Sustainable Practices

• Environmental Sustainability

• Social Sustainability

• Talent SustainabilityWHY DO

COMPANIES CARE?

Brief Biography

• ~ 20 years of supply chain and procurement leadership experience across multiple industries. • 2015 – current: The Hershey Company• 2004-2015: PepsiCo Inc.• 1999-2004: United Technologies Corp.

• MBA University of San Diego

• Sustainable Sourcing Experience• Lead the Hershey sustainable sourcing team

Moderator: Susanna X. Zhu

Company: The Hershey CompanyRole: Chief Procurement Officer

Photo

HERSHEY’S SUSTAINABILITY RECOGNITIONS

➢ General Engineering / Foreign Area Studies in Far East(Chinese) degree from U.S. Military Academy

➢ International MBA from Baldwin-Wallace College

➢ SCM Executive Program from Michigan State University

➢ Board of Director for the Institute for Supply Management

➢ Work Experience:

• Six Sigma for Global Top tier companies for GE, Praxair, Merck & Co., Dade Behring,

Westinghouse Electric company

• 1993-2007: Held various leadership positions in Procurement, SCM, & Product Management

• 2008 - Present: Holds Procurement leadership position for LGE Corporate

Panelist: Chae-Ung Um

Company: LG ElectronicsRole: Corporate SVP, Global Procurement Strategy & General Procurement Function Division

Sustainable Sourcing Experience➢ Leading Sustainable Procurement transformation for LGE and its affiliate companies in LG Group

➢ Recipient of GE Corporate “Extra Step” Award Winner for supporting Small Disadvantaged &

Women-Owned Business Enterprises

Brief Biography

Eco-friendly Business

Reduction of Green House Gas emissions

LG Social Contribution

LG ElectronicsSUSTAINABILITY

SUSTAINABILITY

400 million tons (cumulative,

target by 2020)

[Solar Energy]

[Electric Car]

✓ Solar Energy

✓ Electric Car

✓ Water Treatment

✓ LED

✓ Energy Storage

System

As of 2008,353K tons

PROCUREMENT

✓ For Supporting women procurement professions(20132017)

- LGE Procurement (HQ): 63 76 women (CAGR 4.8%) * Procurement Strategy & GP/VC Co.: 13 29 women (CAGR 22.2%)

✓ Supplier supporting program‐ Financial Support: Yearly Win-Win Growth Fund $17M ‐ Capability Enhancement Support Program: Training & HR Support

✓ For Supporting small to medium companies

“Win-Win” Growth

[Water Treatment]

✓ Ethiopia’s LG Hope Community

LG HopeVillage

LG-KOICA1)

Hope TVET2)

College

LG HopeVaccination

LG HopeDecedents

✓ Donation program : LG Social Justice Award

1) Korea International Cooperation Agency2) Technical and Vocational Education and Training

AWARDS

North America

✓Listed on the Dow Jones Sustainability World Index for four consecutive years

✓CES Innovation Award for 21 products (2016)✓CES Innovation Award for 41 products including

the Best of CES Award (2015)

✓Awarded the 2014 ENERGY STAR Partner of the Year Award & the ENERGY STAR Sustained Excellence Award

✓Winner of 3 Gold prize & 25 awards at 2016 iF Design Awards

✓Winner of 26 awards at 2014 iF Design Awards

✓Singled out as the industry group leader at 2014 for Leisure Equipment & Product and Customer Electronics

✓Winner of 13 awards at 2015 Reddot Award

✓ Awarded Inter Solar Award 2015 for efficient solar power solution

✓ Named among the most sustainable corporations for the third consecutive year

Latin America

✓Listed on Great Place to work at 2011

Asia

✓Receipt of six prizes at the 18th

Energy Winners of the Year Awards

Europe

✓Winner of 18 awards at 2015Good Design Award

Nestle experience - 36 years

• 6 years in product R&D

• 17 years in IT Infrastructure

• 13 years in North America Procurement - a shared services organization supporting the Procurement function in all Nestlé North America operating companies.

Sustainability Experience

• Direct oversight of the Nestle North America Responsible Sourcing Program focused on:• Managing supply chain risk via supplier corporate social responsibility

(CSR) audits• GHG (greenhouse gas) assessments of direct material (raw ingredients

& packaging) and indirect material suppliers• Raw material traceability and supply chain mapping• Assessments at the source of origin (farms, plantations, forests) for key

packaging materials and ingredients.

Panelist: Brian Jones

Company: Nestlé North AmericaRole: Responsible Sourcing Manager

NESTLE’S SUSTAINABILITY RECOGNITIONS

2016 Results• 61% of total volume sourced from suppliers are compliant with the Nestle Supplier Code• 51% of raw ingredients in our priority categories are traceable and 44% are responsibly

sourced• Over the last 10 years, reduced direct GHG emissions per ton of product by 39% while

increasing production by 46%.

Sustainability at Nestlé

Brief Biography• 30 Years Industry/Global Experience – Procurement, Supply Chain,

Manufacturing, Quality, & Finance• Owens Corning

• Whirlpool• Eaton

• MBA – The University of Toledo

• Six Sigma Black Belt

• Sustainability • Lead Sustainable Sourcing for Owens Corning

• Supplier Risk Assessment & Mitigation• Supplier Audits• External Reporting – Robecco SAM / DSJI GRI

Panelist: John Kerr

Company: Owens CorningRole: Global Leader: Operations, Finance & Planning for Strategic Sourcing

John – do you have a higher-res image?-PB

Sustainability at Owens CorningKey Actions / Results

• Sixth Year on Dow Jones Sustainability Index – 3rd Year as Industry Leader• Global Supply Chain Benchmark in the Building Materials Category

• Awarded Green Cross for Safety in 2015• 0.52/100 employees RIR - 86% below Industry Average

• Completed purchase agreements for 250MW of wind energy• Installed 2.4MW of Solar at our World Headquarters• Completed Life Cycle Assessments on all core products• Recycled 2.5 Billion pounds of end-of-life shingles• Formal Supplier Code of Conduct communicated annually• Hosted first Supplier Sustainability Summit for top 100 in 2016

YOUR FEEDBACK IS IMPORTANT

Please take a few minutes to complete this brief survey.

Survey link: www.instituteforsupplymanagement.org/AB17

or Scan the QR code on your smartphone.