Green Supply Chain Management (GSCM) is gaining much importance in many industries due to pressure from the government and environmental consciousness among the customers, to gain competitive advantage.    We have compiled a list of Green Supply Chain studies to assist you in your efforts to address these issues.  The green supply chain studies we spotlight cover the following topics: the role that the logistics and transport sector plays in reducing emissions; the effects of ISO 14001 certification on the promotion of green supply chain management (GSCM), research on interest and implementation of green supply chain initiatives; a quantitative picture of current sustainable supply chain practices and plans; a measurement and quantification of how companies are managing the complexities of supply chain demands, distribution costs and environmental concerns; key drivers of sustainable supply chains;a new integrated supply chain model that takes into account sustainability parameters such as CO2 emissions reduction, reduced energy consumption, better traceability and reduced traffic congestion;best practices for companies looking to green their supply chains ; an outline of the supply chain green initiatives currently implemented or planned in manufacturing, warehousing and distribution;survey of sustainable packaging policies ;a look at the growing role of procurement organizations within sustainability efforts institutions of higher learning; a categorization of research and practice in purchasing, manufacturing, outbound, and reverse logistics dimensions;a framework for measuring the “green-ness”of green supply chain initiatives, the business case for green supply management initiavies, research on the debate by empirically evaluating the relationship between EMS and GSCM practices.

By Tracey de Morsella, the Green Economy Post

Supply Chain Decarbonization: The Role of Logistics and Transportation in Reducing Supply Chain Carbon Emissions. 2009
by Sean Doherty and Seb Hoyle.  Supply Chain Decarbonization, examines the role that the logistics and transport sector plays in reducing emissions, both in its own operations and by influencing shippers and buyers to undertake broader supply chain improvements.  According to the report, logistics and transportation activities contribute approximately 5 percent of the 50,000 mega-tonnes* of carbon-dioxide emissions generated by all human activity annually. The report reviews 13 commercially viable opportunities for reducing supply chain carbon emissions—within the logistics and transport sector as well as across the extended supply chain—and assesses them according to carbon-dioxide abatement potential and feasibility to implement.

Is ISO 14001 a Gateway to More Advanced Voluntary Action? A Case for Green Supply Chain Management. 2009
by Toshi H. Arimura, Nicole Darnall and Hajime Katayama.  Using Japanese facility-level data, the authors estimate the effects of ISO 14001 certification on the promotion of more advanced practices, namely green supply chain management (GSCM). The results show that ISO 14001 promotes GSCM practices, in that facilities with environmental management systems (EMS) certified to ISO 14001 are 40 percent more likely to assess their suppliers’ environmental performance and 50 percent more likely to require that their suppliers undertake specific environmental practices. Further, they found that government approaches that encourage voluntary EMS adoption indirectly promote GSCM practices, in that the probability of facilities assessing their suppliers’ environmental performance and requiring them to undertake specific environmental practices increases by 9 percent and 10 percent, respectively, if a government assistance program exists. Combined, these findings suggest that there may be significant but previously unnoticed spillover effects of ISO 14001 and government promotion of voluntary action.

Building a Green Supply Chain: Social Responsibility for Fun and Profit. 2008
by Robert Shecterlea and Jhana Senxian. Aberdeen research on the Supply Chain Executive’s Strategic Agenda 2008 shows that interest in Green Supply Chain initiatives is robust and growing. For respondents with green as a top focus, the key pressure for their green initiative was overwhelmingly related to a company-wide CSR initiative (55%). This study will explore the main green drivers, and identify specific areas of opportunity in each, such as carbon-footprint and energy usage reduction, supply chain network design and logistics optimization, and green supplier initiatives. Aberdeen anticipates that this research will show that companies implementing successful green supply chain initiatives realize benefits in energy cost reduction, logistics cost reduction, and perceived competitive advantage.

Greening the Supply Chain: Benchmarking Sustainability Practices and Trends. 2009
by Eric Klein, David Schatsky, and Paul Baier. GTM Research conducted a survey of 74 supply chain executives to build a quantitative picture of current sustainable supply chain practices and plans. They found that despite its growing prominence, sustainability is not a core part of most companies’ strategies today. It also is not a prime driver of their supply chain agendas. Sustainability lies in the middle of the pack of supply chain priorities today, behind cost cutting.

Acceleration of ECO-Operation: A Milestone Study on Achieving Supply Chain Success and Sustainability. 2009
Acceleration of ECO-Operation  reveals that despite the enthusiasm regarding sustainability expressed by the global business community, these organizations have been slow to address these issues when it comes to sustainable supply chain management.  The study, titled “Acceleration of ECO-Operation: Achieving Success & Sustainability in the Supply Chain,” gained insights from more than 125 supply chain, operations, finance, and executive professionals around the world across multiple industries.  It set out to measure and quantify how companies are managing the complexities of supply chain demands, distribution costs and environmental concerns.

18th Annual Trends and Issues in Transportation and Logistics Study Exploration into the Five Drivers of Sustainable Supply Chains. 2009
by Dr. Karl Manrodt and Dr. Mary Holcomb. Trends and Issues in Transportation and Logistics Study Exploration into the Five Drivers of Sustainable Supply Chains  shows that nearly half of transportation and logistics players see cost-cutting as their primary strategic objective, while the focus on customers is declining.  The study identified five key drivers of sustainable supply chains: optimization, adaptability, velocity, profitability and synchronization. Each of these five drivers will be explored in depth through a series of additional supplements that will be released individually.

Future Supply Chain 2016: Serving Consumers in a Sustainable Way. 2008
The key finding of the Future Supply Chain 2016 study is that there is a strong correlation between sustainability and the future supply chain of the consumer products and retail industry. This is.  The study presents a new integrated supply chain model that takes into account sustainability parameters such as CO2 emissions reduction, reduced energy consumption, better traceability and reduced traffic congestion, as well as traditional measures like on-shelf availability, cost reduction and financial performance. The total potential impact of this supply chain redesign is significant, including reduction in transport costs per pallet, reduction of handling costs per pallet, reduction of lead-time, lower CO2 emissions per pallet and improved on-shelf availability.

Best Practices in Sustainability: Supply Chain –Key Steps to Building a Sustainable Supply Chain. 2009
The report, Best Practices in Sustainability: Supply Chain reveals the best practices for companies looking to green their supply chains that were uncovered during Kanal Consulting’s study of 25 leading corporations.  The study found that sustainability in the supply chain was one of the major areas that the participating companies acknowledged needed improvement.

The Green Supply Chain Study. 2009
The Green Supply Chain Study was conducted by Supply Chain Management Review and Logistics Management Magazines online. The study found concerns about waste and recycling are more important than greenhouse gas emissions and resource consumption. The study focuses on the most important environmental issues faced by supply chain professionals; outlines the supply chain green initiatives currently implemented or planned in manufacturing, warehousing and distribution; gauges the level of green collaboration with extended supply chain partners; and highlights the greatest challenges for implementing sustainable business practices. .

Packaging Sustainability Report: Evaluating the Benefits of Environmentally Friendly Packaging. 2009
A Tompkins’ Supply Chain Consortium survey of top retail- and manufacturing-related companies reveals that more than 65% of companies have some type of sustainable packaging policy in place, while 28% are currently developing a policy. The Packaging Sustainability survey is the first of a four-part series being conducted by Tompkins’ Supply Chain Consortium.  Topics for the upcoming sustainability reports include: Part II: Transportation Sustainability (December 2009); Part III: Greening Facilities (2010); and Part IV: Waste and Recycling (2010)

Carbon Disclosure Project Supply Chain Report 2009
The second annual supply chain report is a summary of the responses from the suppliers of the current 34 members of the CDP’s supply chain group. Those current members are primarily from two sectors: consumer packaged goods (e.g., Colgate-Palmolive, Unilever, PepsiCo, etc.) and high tech (e.g., Dell, HP, Juniper Networks, etc.), with a handful from other sectors (e.g., retailer Carrefour, Newmont Mining, Johnson Controls).Carbon emissions-focused surveys were sent to some 2300 suppliers of these member companies, asking a variety of questions around current perceptions and practices. The suppliers sent the survey were chosen by the CDP supply chain member companies. For the first time, CDP also requested information from private and smaller companies.

The Current State of Green Procurement Trends within Higher Education Survey. 2009
National Association of Educational Procurement (NAEP) and SciQuest, Inc., a procurement automation organization have published the findings of “The Current State of Green Procurement Trends within Higher Education” survey. The survey, which garnered responses from procurement professionals at more than 100 colleges and universities in the U.S., sought to provide a benchmark from which the profession can gauge the growing role of procurement organizations within sustainability efforts, from the American College and University Presidents Climate Commitment–an effort to address global warming by garnering institutional commitments to neutralize greenhouse gas emissions–to higher education’s efforts to contain costs and do more with less. This is the first year the survey was conducted.

How Green is the Supply Chain? Practice and Research. 2007
by Joseph Sarkis. This paper provides an overview of environmental (green) supply chain management. The overview includes a categorization of research and practice in purchasing, manufacturing, outbound, and reverse logistics dimensions.

Green Corporate Strategies – Issues and Implementation from the Supply Management Perspective 2009
by Bryan Ashenbaum. Can businesses simultaneously pursue green practices while boosting the bottom line? Can they afford not to? To what extent are consumer and political forces shaping their approach? These issues are discussed in Green Corporate Strategies – Issues and Implementation from the Supply Management Perspective,” One possible framework for measuring the “green-ness” of a given strategy has been provided by author, Bryan Ashenbaum, Ph.D, is the Triple Bottom Line (TBL). TBL incorporates economic, environmental and social performance. This report delves into some of the definitions of “green” and “sustainability,” the drivers for green initiatives, the business case for green, recommendations for establishing internal and external green strategies, emerging standards and benchmarks, and information on “greenwashing.” It also includes a case study from The Auto Club Group and several Internet resources for further information.

Environmental Management Systems and Green Supply Chain Management: Complements for Sustainability? 2008.  Revised 2009
by Darnall, Nicole, G. Jason Jolley & Robert Handfield.  Some researchers question the legitimacy of EMSs since organizations can claim to have one when in fact they make no attempt to reduce their environmental harms. In instances where EMSs enhance an organization’s environmental performance, critics argue that improvements are likely to incur within the organization’s operational boundaries rather than being extended throughout the supply chain. However, previous research suggests that the organizational capabilities required to adopt an EMS may facilitate GSCM implementation and the institutional pressures to adopt both management practices are similar. Consequently, EMS adopters may have a greater propensity to expand their focus beyond their organizational boundaries and utilize GSCM practices to minimize system-wide environmental impacts. This research illuminates the debate by empirically evaluating the relationship between EMS and GSCM practices.

© 2010, Tracey de Morsella. All rights reserved. Do not republish.

The standard approach to finance is often the sad antithesis of corporate social responsibility. Most Finance managers have a perception of CSR as simply a cost center and not a revenue generator.Cohen provides an explanation of how there is a basis for the financial function to be a contributor to, and not just a calculator of a company’s CSR program.

by Elaine Cohen is the Joint CEO of BeyondBusiness Ltd

Embedding CSR in …. wait for it … the FINANCE function. Oops! Did I hear that right ? Do CFO’s have a CSR mindset ? Isn’t CSR just a cost center and not a revenue generator? Isn’t that how most CFO’s think? So what’s the deal with embedding CSR in the financial division of the corporation? This post on embedding CSR in the business, is prompted by  Ethical Corporation’s latest research publication on How to Embed Corporate Responsibility Across Different Parts of Your Company , a 100 page report published at end September 2009. It provides an analysis and case studies covering five organizational functions: human resources, finance and accounting, communications, procurement and logistics and operations. I have already blogged about embedding CSR in the procurement function and in the human resources function. Here comes Mr Money’s turn.

I will pause to tell you a story. I was once attending an executive leadership meeting of a company, where an unavoidable 60 redundancies were to be made as part of a cost-reduction exercise. The CFO, on hearing this number of people who would be dismissed, shouted out with glee and said ” Great!! That will almost solve our cost problem.” or words to that effect. The sight of a respected manager of a large business almost jumping with joy at the fact that 60 people were about to lose their livelihoods still makes me feel rather sick. It’s not that I have anything against finance, managers (apart from the fact that they always seem to control what money is not available, rather than what is), but this “people equal costs” approach is the sad antithesis of corporate social responsibility. Story over.

Finance Managers are also employees and share responsibility to be ambassadors of the corporate CSR approach. They  create their share of direct impact through their resources consumption, travel  and waste generation , and participate in corporate volunteering activities (unless it’s month or year end) . The are the authority on managing the company’s money are the first in line to field investor questions and analyst queries. They are the first to understand the financial implications of most corporate risks. So, it seems there is a basis for the financial function to be a contributor to, and not just a calculator of a company’s CSR program.

The Ethical Corporation research report refers to CIMA (Chartered Institute of Management Accountants) and IBE (Institute of Business Ethics) who issued a report in 2008 that emphasized the role that ethics will increasingly play in Finance Managers’ jobs, based on a survey they conducted. The report covers issues such as advice for finance professionals on ethics, how accounting and finance functions can improve a Company’s CSR strategy, the opportunities of carbon trading, ethical checks and balances, and the expectations of ethical investors. Richard Ellis of Boots is quoted in the report as saying “Financial departments need to have an interest in measuring non-financial information,” and I agree with him.  (I am sure he will be pleased about THAT.  Though we all know that accounting for long term indirect impacts are a little more complicated than the standard accounting exams most CFOs have passed with flying colors.

The research report touches on integrated reporting which only a handful of CSR reporting companies have adopted. Integrated reporting is an indication of total systems thinking by an organization and serves to elevate the CSR content to the same level of transparency and rigor as the financial content. As the owners of the financial report, the CFO’s cannot ignore this new style content invading their traditional territory.

I thought about the CSR reports i read and review, and recall little about the way the finance function is involved in CSR. The Australian Real Estate Mirvac Group reported in its 2008 Sustainability Report that it had  “established the Climate Change Response Group. This group, which is chaired by Mirvac’s CFO,and includes representatives from corporate risk, sustainability, and all business unit areas is developing Mirvac’s business wide climate change response.” I also recall that CSR at the Spanish group Telefonica is managed by the CFO, though i cannot find this mentioned in their CSR Report for 2008.

Like it or not, finance managers need to embrace CSR as a reality of the business. Like it or not, we will probably find that when they do, we will suddenly have a lot more numbers in our CSR reports. Like it or not, i am now gonna devour my daily tub of  Chunky Monkey before its cost feasibility outweighs its contribution to making the world a better place.

© 2009, Elaine_Cohen. All rights reserved. Do not republish.

Despite the enthusiasm regarding sustainability expressed by the global business community, these organizations have been slow to address these issues when it comes to sustainable supply chain management, says a new study by the Business Performance Management (BPM) Forum and E2open that was conducted in the second quarter of this year.  Operations, logistics and supply chain executives also lack the understanding of how to go green and save green across complex, global, multi-tiered supply and distribution networks.  The study, titled “Acceleration of ECO-Operation: Achieving Success & Sustainability in the Supply Chain,” gained insights from more than 125 supply chain, operations, finance, and executive professionals around the world across multiple industries.  It set out to measure and quantify how companies are managing the complexities of supply chain demands, distribution costs and environmental concerns. The study has major implications for supply chain, finance, operations, logistics, and procurement professionals and underscores the need for better ECO-Operation, sustainability measurement, and operations insight into multi-tiered supply chain networks.

The results reveal the priorities, progress and pitfalls that supply chain and finance executives are facing in the midst of more complex and competitive product development, production and delivery environments. The study looks at progress in achieving “ECO-Operation,” or optimal visibility, collaboration, and sustainability throughout the multiple layers of supply and demand chain networks. It revealed that these global corporations, who move trillions of dollars in manufactured goods, components and commodities around the globe, are struggling to achieve gains in reducing their carbon footprints.

Visibility and Accountability Remain Problematic

Ninety percent of supply chain and operations professionals surveyed say their management subscribes to enhanced trading partner visibility, flexibility and sustainability across the entire supply and demand chain, yet nearly two-thirds have marginal or no visibility across all tiers and levels of their value chain. Even more concerning is the fact that 78 percent of companies rate the level of synergy and accountability in their global trading network as suboptimal.  The Business Performance Management Forum is looking towards a Greenscape Score, which calls for sustainable transparency and verification from all suppliers, regardless of size.

Several Factors Are Preventing The Achievement of Bottom Line Benefits

Lack of leadership, visibility and standardized sustainability metrics are holding companies back from achieving bottom line benefits and  42 percent of companies surveyed have yet to even consider carbon footprint or greenhouse gas emissions across their entire extended supply chain.  A surprising 76 percent of respondents say their customers have not requested information on carbon and emissions containment, but two-thirds expect customers to demand this in the next year.  Only 20 percent of respondents utilized the advantages provided by a centralized eHub.   In spite of that, some of the companies like Cisco, Dell, Seagate and Xerox reported success with using an integrated global control platform.

Better ECO-Operation Programs and Practices are Yielding Several Benefits

The top benefits achieved through better ECO-Operation programs include more environmental responsibility, better sustainability compliance, more efficient product manufacturing and better customer responsiveness.   More than half of respondents say that their competitors use sustainability or ECO-Operation practices for competitive advantage.  An overwhelming 85 percent of respondents say they are actively involved in new programs that drive operational efficiency, corporate social responsibility (CSR) and cost-savings across supply and demand  chains.

“Today’s economic, social and regulatory dynamics are putting real pressures on global companies to be both lean and green in their product sourcing, logistics, distribution and operational practices,” said Donovan Neale-May, executive director of the BPM Forum. “Unifying and controlling complex, globally-distributed value networks in turbulent, unpredictable times requires real-time operational insights down to the product level, accurate sourcing and sell-through intelligence, and relentless dedication to eliminating waste in all areas of the go-to-market process.”

The report also examines detailed perspectives from more than 20 corporate and faculty leadership committee members, along with commentary and content covering best practices and viable solutions in helping companies come to grips with how to begin to insert efficient and environmental practices into strategic supply chain strategies and solutions.

“The Acceleration of ECO-Operation initiatives provide comprehensive confirmation supporting our observation that companies with hundreds or thousands of global suppliers need to do a much better job at seeing and measuring the levels of environmental compliance and efficiencies down to the second and third-tier level of supplier,” said Rich Becks, senior vice president at E2open. “Supply chain executives understand the benefits of better managing collaboration and sustainability in the value chain — now they just have to make it happen.”

Detailed commentary from the corporate leadership committee revealed the following common themes:

1. Sustainability is becoming an increasingly important consideration to supply chain management executives;
2.  Most companies are still struggling with obtaining verifiable consistent data to measure value chain effectiveness and environmental
responsibility;
3.  Consumer awareness and increased regulation will put added demands on companies to drive green initiatives and efficiencies in the supply    chain.

Download the new ECO-Operation report.

Recommended Resources

Lean SCM Professional On-line Certification Program This On-line Certification Program has been developed in association with the American Institute of Industrial Engineers, the Irish Institute of Industrial Engineers, and the Canadian Professional Logistics Institute. The Program consists of 9 on-line lessons that provide participants with a comprehensive overview of Lean Thinking and its application. It also outlines and demonstrates the essential lean tools and practices that can be applied to your business in order to achieve significant savings to your bottom line. It can be undertaken by individuals through on-line distance learning study.

© 2009, Tracey de Morsella. All rights reserved. Do not republish.

Macomb Community College Announces Renewable Energy Certificate – Macomb Community College (MI) has announced a Renewable Energy Certificate to be launched in fall 2009. Students in the new program will study wind, solar, biomass, geo-thermal and hydrogen fuel cell in a 15 credit hour sequence that can stand alone or be woven into a students’ associate degree program. 87 students have already taken the renewable energy classes the college offered in Fall 2008 and Winter 2009 as a pilot program. Last week, students in the pilot Principles of Solar Energy course spent their class session building and testing miniature solar arrays. The Renewable Energy Certificate is designed so that it can be integrated with related career-focused academic programs at the college. As an example, following one possible option, a student could take a 65-credit course of study at Macomb, which can be accomplished in two years of full-time study, and could graduate with an Associate of Applied Science degree in Maintenance Technology and certificates in both Renewable Energy and Electrical-Industrial Maintenance.

UMassOnline Announces Three New Offerings in Sustainable Entrepreneurship, Environmental Public Policy, and a Green Building Professional Development Series -  The University of Massachusetts Online has announced three new programs: a concentration in Sustainable Entrepreneurship, a graduate certificate Environmental Public Policy, and the Green Building Professional Development Series. The concentration in Sustainable Entrepreneurship will include courses on holistic health, sustainable food and farming, geothermal energy conservation, and green building. The Environmental Public Policy graduate certificate comprises two required and two elective courses, all of which are entirely online. The required courses are: Public Institutions and the Policy Process and Environmental Policy. Electives include Environmental Consequences of Globalization, Administrative Law, Environmental Law, and Ocean Policy and Law. Credits earned through the graduate certificate program will be transferable into the University’s Master’s degree in Public Policy anticipated for calendar year 2010. The Green Building Professional Development Series includes courses in Sustainable Building and LEED Certification, Energy Efficient Housing, The Built Environment, Green Building and Indoor Environmental Quality, and Sustainable Sites for Green Building.

City University of Seattle Launches Globally-Focused Sustainable Business MBA – The City University of Seattle (WA) has announced plans to offer a Masters of Business Administration degree in Sustainable Business and a Sustainable Business Graduate Certificate starting in the fall of 2009. Students who are enrolled in the MBA in Sustainable Business program will take the same core classes as the other CityU MBA programs that are available in the U.S., Slovakia, Greece, Bulgaria, the Czech Republic, and Switzerland. Students will have the opportunity to take their core classes at these international locations during the program, and once the core classes are completed, they can either stay and take their sustainability courses online or come back to the Seattle, Wash. area and take the courses in the classroom. Program emphasis areas are in social and environmental responsibility, marketing in a new economy, environmental accounting, and sustainability and business opportunity.

Highland Community College Completes New Wind Turbine Technician Training Center – The construction of Highland Community College’s newest addition, a 5,500 square foot Wind Turbine Technician Training Center is complete. The center provides the much needed space to house the state’s first Wind Turbine Technician Associate of Applied Science degree. During the ribbon cutting ceremony held June 3, 2009, officials formally opened the facility that includes two dedicated classrooms, a sophisticated hydraulics lab and a large training “shop” that will house the equipment, components and tools needed to complete the Wind Turbine Technician training. The new center is has been fitted with specialized tools through a partnership with Rockford-based Greenlee Textron, Inc. Local participation was key to the successful completion of this project according to officials. Winter Construction of Freeport was the general contractor and R.L. Johnson and Associates was the architect for this project.

University of Wisconsin Extension Creates Online Sustainability Management Degree - The University of Wisconsin-Extension has created an online Sustainable Management Bachelor’s degree, a program designed to provide students with the management skills needed to lead sustainable business strategy. The 63-credit BS degree, which is only available to students who have completed an Associate’s degree or the first two years of a Bachelor’s degree, is an interdisciplinary program that helps students gain a broad understanding of the ways in which business systems, natural systems, and social systems intersect. The curriculum includes courses in Environmental Studies, Triple Bottom Line Accounting, Natural Resource Management, Information Systems, Logistics, Supply Chain Management, and Sustainability.

FEATURED GREEN PROGRAM

UMassOnline Certificate in Sustainability Studies The online Sustainability Studies Certificate Program helps students gain an understanding of the theory and practice of sustainability. This program is available for both full time students and working professionals. Sustainability Studies looks to discover and examine humanity’s philosophies and practices, past and present, as they relate to the natural and social world, and consider what new or alternative philosophies and practices might be capable of providing a sustainable, balanced, and ethical future for the planet and its inhabitants. Click here, for more information about the UMassOnline Certificate in Sustainability Studies.

© 2009, Tracey de Morsella. All rights reserved. Do not republish.