Sustainability is a business practice important to all businesses of all sizes that is beginning to impact across the entire supply chain, as more and more global firms begin to see securing a green supply chain as a strategic priority. Integrated reporting increases the transparency of the organization, highlighting the issues and the impacts towards governance and structure.
The U.S. Government’s Green Purchasing Programs Have Some Serious Problems That Need to be Addressed
The Federal government recently issues a new rule that requires that 95 percent of new contract actions be green.This sounds great. But there are some underlying systemic issues related to the timing of the FARC interim ruling. Industry groups and procurement agencies are scratching their heads. Several industry associations requested that the government stop issuing rules that change federal procurement policy without first considering public comment.
Two days ago, the Federal Acquisition Regulations Council released an interim rule on green procurement, requiring that the head of each agency ensure that 95 percent of new contract actions are for products and services that are energy efficient, water efficient, bio-based, environmentally preferable or non-ozone depleting, adhering to criteria set out by the Environmental Protection Agency and the Agriculture Department. The agencies also must aim to procure items that contain recycled content and are nontoxic.
ISO 26000 Social Responsibility Guidance May Offer Supply Chain Opportunities to Small-Mid Sized Manufacturing
ISO 26000, the global Guidance on Social Responsibility was recently launched. Large to small organizations can strive to be ISO 26000-compliant, stay ahead of the curve and grab the “leader” advantage. Or conversely, companies can risk being a “laggard” and lose vital business opportunities.
Logistics and supply chain professionals need to keep in mind that there is a bottom line angle to towing the “green” line. Dave Meyer presents some definitions of reverse logistics from a traditional versus sustainability focused mindset, and extended product responsibility.
cop 16 supply chainCountries need to take ownership of their entire life-cycle emissions and when such agreements are based on data that attributes emissions fairly. But companies are not waiting around for any unlikely agreement that may come out of COP 16. Many are starting to see a sustainable supply chain as a way to not only cut costs, but also create new products that are less impacting to the environment and expand in developing-world markets that are likely to be hit hard by global warming.
Implementing a Product Information Management (PIM) strategy can help support your corporate sustainability initiatives by having correct data throughout the supply chain. Inaccuracies in product information can cause waste and inefficiencies in the supply chain. And how, as a side benefit, PIM systems contribute to a company’s sustainability initiatives by eliminating these inaccuracies, reducing waste and saving money at the same time. Statistics prove the benefits of implementing a PIM solution and as the amount of product information continues to increase, the old methods of managing it all just won’t work anymore when sustainability, efficiency and accuracy is a concern.
There is an increasing emphasis of supply chain management in creating the proper ingredients of a successful business strategy. The concept of a Green Supply Chain is gaining interest among operations practitioners as a sustainable and profitable undertaking. A Green Supply Chain can be thought of as a supply chain that has integrated environmental thinking into core operations from material sourcing through product design, manufacturing, distribution, delivery, and end-of-life recycling.
The Missouri Economic Research and Information Center recently conducted a survey of state businesses, the Green Jobs Report that found that nearly five percent of the state’s total employment, or more than 130,000 job positions, are now part of the green economy sectors. These numbers are also expected to rapidly grow as soon as the general economy begins to recover.