Supply chain managers fight a tough battle in trying to meet management demands to decrease costs while creating efficiencies and implementing sustainability measures. Economic growth has improved but lacks the stability to provide companies comfort to budget for implementation of many of the innovations in their long- or short-term plan. However, companies can stagnate without taking the time to identify opportunities to innovate. With pressure to sustain its competitive edge, leading organizations are beginning to consider their reverse supply chain to find hidden value.
Analyst Insight: Sustainability has been on consumer packaged goods executives' minds - and part of their strategic plans - for some time now. In the past, many companies have pursued sustainability because they saw it as the right thing to do. At the same time, sustainability also creates positive morale among employees, helps to meet regulations such as those for emissions, and boosts companies' reputations. But only recently has sustainability truly been connected and aligned with financial performance. - Bruce Tompkins, Executive Director, Tompkins Supply Chain Consortium
President Barack Obama is trying to persuade the United States to adopt a cap-and-trade system to curb greenhouse gas emissions. But the European Union's Emissions Trading System "” the world's flagship effort "” is sputtering. European carbon permits, which traded at about €30 ($40) per ton a few years ago, are now hovering at about €5 per ton or less.
Ikea Group, the world's biggest furniture retailer, will double its investment in renewable energy to $4bn by 2020 as part of a drive to reduce costs as cash-strapped consumers become more price sensitive.
The UK government will defer a decision on whether to include international aviation and shipping emissions in carbon budgets until the setting of the fifth carbon budget in 2016, by which point there should be more clarity on how aviation emissions will be tackled at an EU and global level.
The current expansion of the Panama Canal, expected to be completed by early 2015, creates tremendous opportunities for the global freight transportation industry and may have significant effects on many ports in the United States, particularly in Houston and other Gulf areas. The environmental implications of the expansion are less clear.
In 2005 Walmart made history when then-CEO Lee Scott announced a bold sustainability strategy that would impact every aspect of its business. Along the way business researchers from the University of South Carolina and the University of Arkansas were given unprecedented access to study the process. A three-year project has culminated into a series of case studies, available online, that will be used to teach business students and executives about sustainability and business development.
Working closely with Haesaerts Intermodal and Procter & Gamble, Dow Chemical Co. implemented a multifaceted plan for significantly reducing its carbon footprint caused by the movement of a crucial chemical from France to Russia.
Working closely with Haesaerts Intermodal and Procter & Gamble, Dow Chemical Co. implemented a multifaceted plan for significantly reducing its carbon footprint caused by the movement of a crucial chemical from France to Russia.
Two industry groups have joined to fill the need for a globally harmonized approach to measure and communicate product lifecycles. The Consumer Goods Forum, a global network of more than 400 retailers, manufacturers, service providers and other stakeholders, has partnered with The Sustainability Consortium, which is dedicated to developing science and integrated tools to support informed decision making for product sustainability across the consumer goods industry.