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Christopher CookThe Sustainability Consortium
Product-Level Supply Chain Metrics: A Comprehensive Guide to Applying the Work of The Sustainability Consortium
#SB16SD #ActivatingPurpose
Sheila BoniniThe Sustainability Consortium
@TSC_news | WWW.SUSTAINABILITYCONSORTIUM.ORG
Product Supply Chain Metrics: A Comprehensive Guide to Applying the Work of
The Sustainability ConsortiumSheila Bonini, CEO | Christopher Cooke, Director of Technical Development
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 2
Welcome
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 3
Agenda
Welcome 9:00
TSC model for sustainability reporting 9:05
Activity: Life cycle hotspots and metrics 9:30
A closer look at the KPIs 10:15
Networking break 10:30
Activity: Working with the data 11:00
Activity: Data to Action 11:30
Wrap up
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 4
Activity: Ice breakerPresent: TSC Intro (Sheila)
– Some stuff from the Impact Report– Supply chain slides– How the Toolkits are used - who, what, when, how, why
• Examples from WMT, M&S, etc.Present: Metrics/Methodology - TSC Approach (Chris)Activity: Supply chain hotspots
– Identify hotspots on a blank supply chain diagram (prepare a few and select based on participants interests)• Chicken• Laundry detergent• Computers• Household papers• Maybe textiles
– How difficult do you think it would be to address them, measure them?– Try to get one TSC person per breakout group (JK3 and SEL may also be there)
Report out– What did you find?– Show TSC version of the supply chain diagram and compare
Present: TSC KPIs in practice– What do the KPIs look like? What types of metrics do we ask for?– What are some broad trends we see in the data (e.g. bimodal distributions)
Activity: Understanding the data– Start with average score for all KPIs in Toolkit– Then give deeper analysis
• Histograms/related analysis for specific KPIs in each Toolkit• Issue/cross category (e.g. fertilizer use across many plant-based foods Toolkits; compare chicken to beef)
Report out– What is driving these results?– What’s happening in these supply chains?– Why are there differences/similarities?
Activity/Discussion: How do we turn reporting into action?– What are the management implications?– How to integrate into decision making. What types of analysis should be done?– What can be done at the company level and industry level to get performance to improve over time? How do organizations like TSC contribute improvement?– What recommendations would you make to the different retailers, manufacturers, suppliers, etc.?
Conclusion
5THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
BENEFITS TO SOCIETY OF CONSUMER GOODS
Apparel and shoesOver 1.5 billion people are infected with parasitic diseases preventable by wearing proper footwear3
Home appliancesAir-conditioning was central to worker productivity growth in the US in the 1950s and has enabled economic development in warm climates such as in South East Asia1
PackagingUltrathin plastic film helps block transmission of oxygen, increasing shelf life of fresh meats to 21 days or more2
Personal and home care productsHand washing helps avoid contracting diseases which cause 3.5 million deaths annually among children under 5 years of age5
Cell phonesThanks to mobile phones fishermen in India can now call several markets to determine the best price for their catch - reducing consumer prices by 4% and increasing fishermen profit by 8%6
6THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 7
Impact of 2% annual emissions reductions from $1 trillion of consumer goods retail sales
~0.5GtCO2e4
ONE OF THE SINGLE BIGGEST LEVERS TO ADDRESS SUSTAINABILITY
8THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
CONSUMER GOODS SUPPLY CHAINS
9THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
To shift the consumer goods industry at scale, we need to focus on the mainstream: the things we all buy every day. How can we enable consumers to buy the products they love, from the retailers they love, and be assured that these purchases are sustainable? In order to make change across the mainstream, we need to transform and evolve the myriad supply chains underlying consumer goods. And that means understanding and addressing the complexities inherent in the modern global supply chain.
A market-based approach to driving more sustainable products
10THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
HEAT MAP OF IMPACT AREAS
11THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
12THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
13THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
MANAGING RESOURCES, CLIMATE, MATERIALS, WATER AND ENERGY
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 14
TSC has developed a tested and proven modelBased in materiality and science to capture the complexity inherent in sustainability—addressing environmental, social, and economic impacts—while at the same time being simple enough to be discussed in a buying room by non-experts.
Product category-level reporting
Material issues from the full value chain
Pre-competitive, multi-stakeholder development environment
Align with existing initiatives with sector and issue expertise
Metrics from the manufacturer perspective
Many-to-many reporting
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 15
• Scalability in both development and deployment.
• Compatible with existing procurement practices for many retailers
• Works well for alignment with sector initiatives
• Focal point for engaging both supply chain and other stakeholders
• Can provide specific metrics for material environmental and social issues while covering much of a company’s activities
• Differentiation within a single supplier/manufacturer
• Reusability of reporting for multiple customers
Product category-level reporting
Corporate reporting
Product level
Product category
Specificity
Sca
le
Product category
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 16
2 Review Scientific Sources
1 Define the Product Category
3 Research Lifecycle Hotspots
7 Multi-Stakeholder Review
4 ResearchImprovement Opportunities
5 Evaluate the Evidence
6 Design Key Performance Indicators
8 Publish 9 Update and Revise
Issues from the full life cycleLife Cycle Perspective
Identify social and environmental hotspots from throughout the product category life cycle
Materiality
Evaluate the consensus and quality of the scientific evidence as well as the actionability of the issues
Life cycle
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 17
Pre-competitive, multi-stakeholder development environment
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 18
Aligning with Key Initiatives
Food Beverage and Agriculture Electronics General Merchandise Textiles
PackagingToys
• Take advantage of existing expertise, progress and tools already out there
• Link with these resources1. Identify sector-level or issue-specific initiatives that are widely-adopted2. Form partnerships as required3. Adopt language, metrics and KPIs from other initiatives – incorporated these into our KPIs
• This radically simplifies the process for companies in those supply chains – they can re-use their work
Home and Personal CareCross-sector
Alignment
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 19
Manufacturer perspective + activity-based metrics
KPIs in the Product Sustainability Toolkits are written to be answered from the perspective of manufacturers of consumer goods.
However, the KPIs address impacts throughout the supply chain, so responding to KPIs can require data collection from upstream suppliers.
– Many metrics end up being about what you know about what you buy rather than direct measures of impact
KPI scope is defined with respect to supply chain activity, rather than ownership – For example: Rather than asking about water use in the manufacturer’s own facilities, KPIs
ask about water use in the facilities where the final product is manufactured.– A subtle difference with significant effects (some companies don’t own any of their
manufacturing facilities!)– Makes responses more comparable between manufacturers– Drives transparency and cooperation in the supply chain
Mfr. perspective
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 20
Many-to-many reporting platform
20
From this…
TSC
SAP PSN SuppliersRetailers
… to this
Retailer 1 Supplier 1
Retailer 2
Retailer 3
Retailer …
Supplier 2
Supplier 3
Supplier …
Many-to-many
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 21
Activity: Life cycle hotspots and metrics
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 22
Activity: Supply chain metrics
• Assemble by the blank supply chain diagram that is of most interest to you
• Identify the five (or more) most important environmental and/or social issues in the product’s life cycle (feel free to add more life cycle stages)
• Why are these the most important?
• How would this supply chain address these issues?
• How would it measure them?Product category-level reporting
Material issues from the full value chain
Pre-competitive, multi-stakeholder development environment
Link to existing initiatives with sector and issue expertise
Activity-based metrics from the manufacturer perspective
COMPUTERSSUPPLY CHAIN HOTSPOTS
START
Mining operations, conflict zones: Workers experience human rights abuses from armed groups at certain mining sites
Chemical Use – IC manufacturing, photolithography: Gases used during integrated circuit (IC) manufacturing can cause climate change
Electricity Consumption –IC manufacturing: Electricity generation to power integrated circuit (IC) manufacturing facilities can cause climate change
Chemical Use – LCD manufacturing, Photolithography: Chemicals used in liquid-crystal display (LCD) manufacturing processes can cause climate change
RESOURCE EXTRACTION COMPUTER PARTS MANUFACTURING COMPUTER MANUFACTURING & ASSEMBLY
PACKAGINGRETAILCONSUMER USEEND-OF-LIFE & DISPOSAL
HOTSPOTS
Electricity consumption –LCD Manufacturing: Electricity generation to power liquid-crystal display (LCD) manufacturing can cause climate change
Worker Exploitation –Component manufacturing, electronics: Workers are exposed to unsafe working conditions and experience human rights violations
Electricity consumption –PWB manufacturing: Electricity generation to power printed wiring board (PWB) manufacturing can deplete resources and cause climate change
Electricity consumption –Product manufacturing: Electricity generation to power manufacturing facilities can cause climate change
Worker exploitation – Product manufacturing, electronics:Workers can be exposed to unsafe working conditions and experience human rights violations
Electricity consumption –Product operation: Electricity generated to operate laptops and computers can cause climate change
Product disposal – Informal recycling, unsafe recovery methods: Workers, communities, and the environment may be exposed to heavy metals and other chemical emissions
Product disposal –Battery disposal: Improper handling of batteries at end-of-life may expose workers to heavy metals
Product disposal –Handling and treatment: Workers may be exposed to potentially hazardous dusts
Product disposal –Incineration: Incineration of plastics and other components create emissions that impact humans and the environment
Product disposal –Landfilling: Landfilling reduces device or material reuse, refurbishment, and recovery, and may release hazardous chemicals into the environment
Version 1 | © 2016 Arizona State University and University of Arkansas
Land conversion and deforestation –Forestry operations: Ineffective forest management can lead to environmental impacts and climate change from deforestation.
Energy consumption – Pulp and paper production: Energy generated to power manufacturing processes can cause climate change, damage the environment, deplete resources, and impact human health.
COPY PAPERSUPPLY CHAIN HOTSPOTS
START
Community rights – Forestry operations: Local communities can be negatively affected by forestry operations due to loss of land use, timber rights, and cultural heritage.
Illegal logging – Forestry operations: Harvesting timber illegally may lead to biodiversity loss and impact land rights of local communities.
Labor rights – Wood sourcing: Forestry operations may use child labor, as well as violate other labor rights.
Pesticide application – Wood sourcing: Improper pesticide use can impact biodiversity, water quality, and human health.
HOTSPOTS
Worker health and safety -–Forestry operations: Workers can develop serious health problems from poor working and living conditions in addition to physical injury from other occupational hazards.
Chemical use – Pulp production: Chemicals used for pulping and bleaching can pollute the environment.
Worker health and safety – Pulp and paper production: Workers can develop serious health problems from exposure to the chemicals used to make pulp and paper and physical injury from other occupational hazards.
Water use – Pulp production: Water use during pulp and paper manufacture can deplete freshwater resources.
Transportation to retailers: Fuel combustion for transportation of the final product can cause climate change, deplete resources, and impact human health.
Version 1 | © 2016 Arizona State University and University of Arkansas
TRANSPORTATIONRETAILPRODUCT & PACKAGING DISPOSAL
FORESTRY OPERATION
START
PULP & PAPER MANUFACTURING PAPER CONVERTING & PACKAGING
CONSUMER USE
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 28
A closer look at the KPIs
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 29
TSC model
Product category-level reporting
Material issues from the full value chain
Pre-competitive, multi-stakeholder development environment
Align with existing initiatives with sector and issue expertise
Metrics from the manufacturer perspective
Many-to-many reporting
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 30
Further principles and practices for creating KPIs
Actionability from the brand manufacturer perspective
Final product as a common reference
Different KPI types for different reporting realities
Scoring of KPIs for later decision making
To help to create answerable KPIs that provide valuable data
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 31
Example: Greenhouse gasesActionability helps determine the metrics
What was the greenhouse gas emissions intensity associated with final manufacture of your product in the last twelve months?
A. We are unable to determine at this time.
B. Our greenhouse gas emissions intensity over our last twelve-month reporting period was:
B1. ________ kg CO2e per dollar.
B2. ________% of our product, by revenue, is represented by the number reported above.
What percentage of the metal components used in your final product, by mass purchased, was produced by suppliers that reported their annual Scope 1 and 2 greenhouse gas emissions in the last twelve months?
A. We are unable to determine at this time.
B. The following percentage of metal supply, by mass purchased, was produced by suppliers that reported Scope 1 and 2 greenhouse gas emissions:
B1. ________%.
• GHG metrics for manufacturing and components have different actionability, so take different forms
• “Scientific metrics” are always paired with a reporting rate due to difficulties in direct comparability
• Steps to avoid sensitive data: asking for percentages or revenue, mass, units, etc. rather than absolute numbers.
Actionability
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 32
Example: Greenhouse gases, agricultureActionability is not solely dependent on supply chain stage
What was the greenhouse gas emissions intensity associated with the growing operations for your grain supply purchased in the last twelve months?A. We are unable to determine at this time.
B. Our greenhouse gas emissions intensity over the last twelve months was:
B1. ________ kg CO2e per metric tonne of crop harvested.
B2. ________% of our crop supply, by mass purchased in the last twelve months, is represented by the number reported above.
Notes• The units are chosen so that typical responses will land between 0 and 1000
• The scientific metrics are calculated as average of the metrics reported by each supplier, weighted by the mass (volume, units, etc.) they each supply.
• This is done for answerability. Suppliers (and growers) are more willing to report an intensity metric, rather than the absolute values that would allow the final manufacturer to perform their own calculations.
• But the final manufacturer still needs to know how much the purchased from each supplier
Actionability
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 33
Example: Worker health & safetyFinal product as common reference
What are the outcomes of the verifiable worker health and safety risk assessments performed in processing facilities that produced the grain used in your final product?
A. We are unable to determine at this time.
B. The following percentages, by mass purchased, represent the outcomes of our risk assessment(s):
B1. ________% of our grain supply came from low risk countries with corrective actions taken for any known high risk sites.
B2. ________% of our grain supply came from high risk countries that have high risk sites for which we took corrective actions.
B3. ________% of our grain supply came from high risk countries, but an audit determined the site risk to be low.
Notes• The final product is usually the reference point for the metrics, even if the impact being
addressed is several steps upstream.
• Sometimes, there are multiple paths to address a single issue. Keep closely-related metrics together under a single KPI
Final product
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 34
Example: Priority chemicalsQualitative KPIs have a role
What level of disclosure does your organization require from your ingredient and raw material suppliers?
A. We require that a material safety data sheet accompany all raw materials and ingredients.
B. We require a list of all substances intentionally added to the ingredient or raw material, or have ensured that priority chemicals are identified in the composition
C. In addition to (B), we require a list of all priority chemicals present at a level greater than 1000 ppm, whether intentionally added or not.
D. In addition to (C), we require a list of all priority chemicals present at a level greater than 100 ppm, whether intentionally added or not.
Notes• Qualitative KPIs are used in cases where there are important issues, but it is difficult
to require a quantitative response
• This may be because of the complexity, data availability, or special concerns about the nature of the issue
• The response options represent a progressive set of practices and programs
KPI types
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 35
Scoring
• TSC KPIs are designed to be easily scored on a 0 – 100 scale, if desired
• Scores generally represent how successful a respondent has been at obtaining data about the issue in question.
• Currently, the scientific metrics are not part of the scoring - the score is equal to the related percentage.
• For KPIs that only have a percentage response, the score is equal to the percentage
• For qualitative KPIs, the responses are scored linearly from 0 t o 100
• “Unable to determine” responses result in a 0 score
Scoring
What was the greenhouse gas emissions intensity associated with final manufacture of your product in the last twelve months?
A. We are unable to determine at this time. (0)
B. Our greenhouse gas emissions intensity over our last twelve-month reporting period was:
B1. ________ kg CO2e per dollar.
B2. ___39___% of our product, by revenue, is represented by the number reported above.
What level of disclosure does your organization require from your ingredient and raw material suppliers?
A. We require... (0)
B. We require a list of all substances…(33)
C. In addition to (B), we require a list…1000 ppm (67)
D. In addition to (C), we require a list…100ppm (100)
What percentage of the metal components used in your final product, by mass purchased, was produced by suppliers that reported their annual Scope 1 and 2 greenhouse gas emissions in the last twelve months?
A. We are unable to determine at this time. (0)
B. The following percentage of metal supply, by mass purchased, was produced by suppliers that reported Scope 1 and 2 greenhouse gas emissions:
B1. ___71___%.
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 36
Score heatmap – Impact area vs. product grouping
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 37
Score heatmap – Climate and energy KPIs
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 38
KPI score distributionAll KPIs from all Toolkits used in 2015
0
5000
10000
15000
20000
0 1-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-99 100
Num
ber o
f KPI
resp
onse
s
Score
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 39
Break10:30 – 11:00
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 40
Activity: Working with the data
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 41
Activity: Working with the data
• Reassemble into the same groups as for the previous activity (based on the supply chain diagram you worked on)
• Look over the data and graphs on the provided sheets
• Data corresponds to the same Toolkits as the supply chain diagrams
• This is taken from actual TSC respondent data from 2015
• Consider:
• What is driving these results?
• Is this the performance you would expect?
• What accounts for the differences in KPI scores?
• What accounts for the distribution of KPI scores?
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 42
Activity: Data to action
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 43
Activity: Data to action
• Stay in your same groups!
• Again looking at the supply chain diagram, data, and graphs, consider:
• What are the management implications of having this data?
• How would you integrate the data/reporting into business decision making? What types of analysis are needed?
• What can be done at the company level and industry level to get performance to improve over time? How do organizations like TSC contribute improvement?
• What recommendations would you make to the different retailers, manufacturers, suppliers, or other key actors?
44THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
Call to Action
1. Retailers commit to a common platform to measure and track consumer product sustainability.
2. Manufacturers drive supply chain visibility and performance, which will also enhance their own business outcomes and reduce risk.
3. Stakeholders partner to align and drive scale: companies, NGOs, and other organizations can work together to create scale by harmonizing existing metrics and tools, and drive continued momentum by collaborating on shared initiatives to address key hotspots.
Create a consumer-goods ecosystem that is sustainable using a common approach to measuring and tracking the product sustainability of
$1 trillion
of retail sales over the next five years
45THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
TSC 2016 Impact Report
Download at www.sustainabilityconsortium.org
The Sustainability Consortium® is jointly administered by Arizona State University and University of Arkansas
with additional operations at Wageningen UR in the Netherlands and Tianjin, China.
WWW.SUSTAINABILITYCONSORTIUM.ORGFOLLOW US ON TWITTER @TSC_news
47THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
KPI Average Score
n KPI 1: Fertilizer Application - Feed Cultivation 0n KPI 2: Deforestation and Land Conversion - Feed Sourcing 13n KPI 3: Air Quality - Animal Farm Operations 24n KPI 4: Animal Welfare Certifications and Audits 59n KPI 5: Antibiotic Use - Animal Farm Operations 16n KPI 6: Feed Conversion Ratio 32n KPI 7: Greenhouse Gas Emissions - Animal Farm Operations 2n KPI 8: Labor Rights - Animal Farm Operations 22n KPI 9: Nutrient Management - Animal Farm Operations 42n KPI 10: Water Use - Animal Farm Operations 20n KPI 11: Worker Health and Safety - Animal Farm Operations 28n KPI 12: Carcass Utilization 25n KPI 13: Greenhouse Gas Emissions - Processing 34
0
10
20
30
40
50
60
70
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
KPI 7: Greenhouse Gas Emissions - Animal Farm Operations
0
10
20
30
40
50
60
70
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
KPI 13: Greenhouse Gas Emissions - Processing
0
10
20
30
40
50
60
70
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
KPI 9: Nutrient Management - Animal Farm Operations
Score represents the % of chicken, by mass, that was produced on farms for which GHG intensity data could be obtained.
Scores of 0 represent 0% and “unable to determine” responses.
Score represents the % of chicken, by mass, that was processed in facilities for which GHG intensity data could be obtained.
Scores of 0 represent 0% and “unable to determine” responses.
Score represents the % of chicken, by mass, that was produced on farms with a nutrient management plan in place
Scores of 0 represent 0% and “unable to determine” responses.
0
10
20
30
40
50
60
70
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
Score distribution for all Chicken KPIs
CHICKEN KPI DATA
48THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
0
10
20
30
40
50
60
70
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
KPI 12: Worker health and safety - Final product manufacture
0
10
20
30
40
50
60
70
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
KPI 4: Legality - Virgin fiber sourcing
0
10
20
30
40
50
60
70
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
KPI 7: Greenhouse gas emissions - Pulp production
KPI Average Score
n KPI 1: Certification - Virgin fiber sourcing 0n KPI 2: Community rights - Virgin fiber sourcing 13n KPI 2: Community rights - Virgin fiber sourcing 24n KPI 4: Legality - Virgin fiber sourcing 59n KPI 5: Protection of biological diversity -Virgin fiber sourcing 16n KPI 6: Bleaching chemicals - Pulp production 32n KPI 7: Greenhouse gas emissions - Pulp production 2n KPI 8: Water use - Pulp production 22n KPI 9: Air and wastewater emissions 42n KPI 10: Fiber composition 20n KPI 11: Greenhouse gas emissions - Final manufacture 28n KPI 12: Worker health and safety - Final product manufacture 25n KPI 13: Fuel combustion - Transportation to retailers 34
Score represents the % of pulp used, by mass, that was produced in facilities for which GHG intensity data could be obtained.
Scores of 0 represent 0% and “unable to determine” responses.
Score represents the % of virgin fiber used, by mass, that had third-party legality verification.
Scores of 0 represent 0% and “unable to determine” responses.
Score represents the % of final product, by mass, that was produced in facilities for which worker injury and illness rate data could be obtained.
Scores of 0 represent 0% and “unable to determine” responses.
COPY PAPER KPI DATA
0
10
20
30
40
50
60
70
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
Score distribution for all Copy Paper KPIs
49THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS
0
2
4
6
8
10
12
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
KPI 10: Energy savings in use phase
0
2
4
6
8
10
12
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
KPI 3: Greenhouse gas emissions - Scope 3 emissions
0
2
4
6
8
10
12
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
KPI 6: Greenhouse gas emissions - Manufacturing
Score represents the % product units sold that were certified ENERGY STAR units.
Scores of 0 represent 0% and “unable to determine” responses.
Score represents % of final product (by spend/cost) produced in facilities from which scope 3 emissions data could be obtained.
Scores of 0 represent 0% and “unable to determine” responses.
Score represents the % of final product (by spend/cost) produced in facilities where the respondent was able to gather scope 1 and 2 emissions data
Scores of 0 represent 0% and “unable to determine” responses.
COMPUTERS KPI DATA
KPI Average Score
n KPI 1: Conflict minerals 60n KPI 2: F-GHG emission tracking and reporting 78n KPI 3: Greenhouse gas emissions - Scope 3 emissions 81n KPI 4: Worker health, safety, and labor rights 57n KPI 5: Supply chain working conditions - Audit results 59n KPI 6: Greenhouse gas emissions - Manufacturing 59n KPI 7: Hazardous substances - Alternatives assessment 31n KPI 8: Hazardous substances - Disclosure 50n KPI 9: Hazardous substances - Brominated flame retardants 47n KPI 10: Energy savings in use phase 73n KPI 11: Product takeback program 63n KPI 12: Downstream worker health and safety - Product takeback 77n KPI 13: Material disposition tracking - Product takeback 78
0
2
4
6
8
10
12
14
0 1-25 26-50 51-75 76-99 100
Num
ber o
f res
pond
ents
Score
Score distribution for all Computers KPIs
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 50
KPI scoring - Scorability
TSC itself does not publish weights beyond the simple scoring mechanismAll KPIs can be translated to a 0 - 100 scale should a user desireCalculations are performed using percentages as decimal values (0 – 1.0)
Example Calculation Result
Scientific metricsB2. 17 % of our product, by revenue, is represented by the number reported above.
= %*100 17
Single percentagesThe following percentage of metal supply, by mass purchased, was produced by suppliers that reported Scope 1 and 2 greenhouse gas emissions: B1. 81%
= %*100 81
Multiple percentages (MECE options)B1. 11% of our grain supply came from low risk countries with corrective actions taken for any known high risk sites.B2. 64% of our grain supply came from high risk countries that have high risk sites for which we took corrective actions.B3. 3% of our grain supply came from high risk countries, but an audit determined the site risk to be low.
= (B1+B2+B3) *100
78
Multiple percentages (combined metrics)B1. 22% of crop supply provided by growing operations that have had zero conversion of HCV forests since 2010.B2. 34% of crop supply provided by growing operations that have had zero conversion of HCS forests since 2010.
= 50*B1+ 50*B2
28
Scoring
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 51
KPI scoring - Scorability
TSC itself does not publish weights beyond the simple scoring mechanismAll KPIs can be translated to a 0 - 100 scale should a user desireCalculations are performed using percentages as decimal values (0 – 1.0)
Example Calculation ResultSingle percentagesThe following percentage of metal supply, by mass purchased, was produced by suppliers that reported Scope 1 and 2 greenhouse gas emissions: B1. 81%
= %*100 81
Multiple percentages (MECE options)B1. 11% of our grain supply came from low risk countries with corrective actions taken for any known high risk sites.B2. 64% of our grain supply came from high risk countries that have high risk sites for which we took corrective actions.B3. 3% of our grain supply came from high risk countries, but an audit determined the site risk to be low.
= (B1+B2+B3) *100
78
Multiple percentages (combined metrics)B1. 22% of crop supply provided by growing operations that have had zero conversion of HCV forests since 2010.B2. 34% of crop supply provided by growing operations that have had zero conversion of HCS forests since 2010.
= 50*B1+ 50*B2
28
Scoring
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 52
KPI scoring - Scorability
Example Calculation ResultScientific metricsB2. 17 % of our product, by revenue, is represented by the number reported above.
= %*100 17
QualitativeA. We require that a material safety data sheet accompany all raw
materials and ingredients.B. We require a list of all substances intentionally added to the
ingredient or raw material, or have ensured that priority chemicals are identified in the composition
C. In addition to (B), we require a list of all priority chemicals present at a level greater than 1000 ppm, whether intentionally added or not.
D. In addition to (C), we require a list of all priority chemicals present at a level greater than 100 ppm, whether intentionally added or not.
A = 0B = 33C = 67D = 100
67
• Qualitative KPIs can be scored on a simple linear scale from 0 to 100. The value for each response option depends on the number of response options.
• Qualitative KPIs will use up to six response options
Scoring
© 2015 Arizona State University and University of Arkansas 53
Part 3: Reporting
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 54
Getting to scale with supplier-buyer data exchange
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From this…
TSC
SAP PSN SuppliersRetailers
… to this
Retailer 1 Supplier 1
Retailer 2
Retailer 3
Retailer …
Supplier 2
Supplier 3
Supplier …
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 55
Evaluate a supplier / perform a self assessment
0 10 20 30 40 50 60 70 80 90 100
Transportation
Greenhouse gas emissions - Manufacturing
Worker health and safety - Manufacturing
Sustainable packaging design
Conflict minerals
Labor rights - Plastics supply chain
Worker health and safety - Plastics supply chain
Packaging raw material sourcing and end-of-life
Volatile organic compounds (VOCs) - Printing
Score*
*Mock data
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 56
Compare a supplier against the average
0 10 20 30 40 50 60 70 80 90 100
Transportation
Greenhouse gas emissions - Manufacturing
Worker health and safety - Manufacturing
Sustainable packaging design
Conflict minerals
Labor rights - Plastics supply chain
Worker health and safety - Plastics supply chain
Packaging raw material sourcing and end-of-life
Volatile organic compounds (VOCs) - Printing
Score*
n Individual supplier score n Average score of all suppliers in the product category
*Mock data
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 57
Track progress over timeCan use scores or reported data itself
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Year 3
Year 2
Year 1
Low risk countries High risk countries + corrective actions High risk countries + audit Unknown
What are the outcomes of the verifiable worker health and safety risk assessments performed in processing facilities that produced the grain used in your final product?
A. We are unable to determine at this time.
B. The following percentages, by mass purchased, represent the outcomes of our risk assessment(s):
B1. ________% of our grain supply came from low risk countries with corrective actions taken for any known high risk sites.
B2. ________% of our grain supply came from high risk countries that have high risk sites for which we took corrective actions.
B3. ________% of our grain supply came from high risk countries, but an audit determined the site risk to be low.
*Mock data
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 58
Compare issues & stages across categoriesMay also involve rolling up KPIs into a smaller set of issues
8
19
22
22
24
24
24
25
25
26
30
31
32
32
38
39
42
43
44
47
53
Flourinated GHG
Supplier-GHG
Packaging
Transportation
Farm-Environmental
Farm-Water
Product Design
Manufacturing-Pollution
Supplier-Pollution
Manufacturing-GHG
Farm-Social
Sourcing
Supplier-Water
End-of-Life
Use Phase
Manufacturer-Labor
Supply Chain Mapping
Priority Chemicals
Manufacturing-Worker Health and Safety
Animal Welfare
Supplier-Worker Health and Safety
Average KPI Score
© 2015 Arizona State University and University of Arkansas 59
Thank you!
THE SUSTAINABILITY CONSORTIUM ® | © 2016 ARIZONA STATE UNIVERSITY AND UNIVERSITY OF ARKANSAS 60
Product categories covered117 product categories (to date) across 8 Sectors
Cross Sector
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Food, Beverage & Agriculture
ElectronicsClothing, Footwear &
Textiles
General Merchandise
ToysPaper, Pulp & Forestry
Home & Personal Care
8 categories, including:
10 categories, including:
48 categories, including:
21 categories, including:
13 categories, including:
10 categories, including:
5 categories, including: