green CORPORATIONS

goGREEN

Staring at the future

“We can’t solve problems by using the same kind of thinking we used when we

created them.” Albert Einstein2

GlobalizationInternationalization

Internaţionalizare

Universalization

Universalizarea

Deterritorialization

Deteritorializarea

Modernization

Modernizarea

Liberalization

Liberalizarea

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Environment and Globalization

“the linkage”

• 1.The increased demands for critical, finite natural resources.

• 2.The new security threats to an already insecure world.

• 3.The newly prosperous and the established wealthy.

• 4.The consumption

• 5.The concerns

The Pollution Haven Effect

is Legal, but is it also

Social & Ethically Fair?

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Sustainable Development -“The three Pillars”

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, by stipulating that any development policy must incorporate economic, social and environmentalcomponents.

Avenues for Action: What Can We Do?

… both globalization and environment challenge the current architecture of the international system as it now exists…

Establishing sustainable development has become a common goal

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Environmental change is upon us. “People

should be concerned about what we are

doing to the climate,“

"The burning of oil and other fossil fuels

releases carbon dioxide, which rises,

blankets the earth and traps heat."

• Responsible businesses are at the heart of society.

• Companies that understand their links with the communities, and their impact on the environment,

are most likely to prosper in the long-term.

• Interest from stakeholders in firms’ environmental performance is at an all-time high.

• There is an increasing recognition that good environmental performance makes good business

sense.

• Environmental risks and uncertainties impact to some extent on all companies, and affect investment

decisions, consumer behaviour and Government policy.

• Failure to plan for a future in which environmental factors are likely to be increasingly significant may

risk the long-term future of a business.

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Policy and regulatory

context and initiatives

• Sustainable Development Strategy – Securing the Future (UK)

• Accounts Modernisation Directive• GHG (or Carbon) Trading Programs– Cap-and-Trade

Programs, Carbon Offsetting

• EU Emissions Trading Scheme

• Kyoto Protocol• GHG (or Carbon) Taxes

• Baseline-and-credit programs

• Process or Product Standards

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Supply Chains Green Supply Chains Green Companies

A set of three or more entities(organizations or individuals) directlyinvolved in the upstream anddownstream flows of products,services, finances, and/or informationfrom a source to a customer .

The process of using environmentallyfriendly inputs and transforming theseinputs through change agents -whose by-products can improve or berecycled within the existingenvironment. This process developsoutputs that can be reclaimed and re-used at the end of their life-cycle thus,creating a sustainable supply chain.

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Reconditioning, Reuse, Recycling

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A Great Example!!!

Could you ever imagine it?

The Production of an Electric Toothbrush is a

Worldwide matter!!!

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Climate ChangesExtreme weather, natural disasters, reduced productivity

•Droughts & Flooding

•Increased frequency & intensity

of heat-waves,

•hurricanes, cyclones, storms

and tornados.

•Acid Rain

•Ice melting & Rises of sea level

It disrupts operations andtransportation.It damages commercial premises.It depletes agriculture resources

It can dislocate customers, reduceconsumer demand and purchasingpower.

It can completely change the riskequation of where and howcompanies can operate profitably.It causes political and social crisisthat could lead in instability

Consequences of growth to

environment..

Consequences of environment

to growth

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Why develop green businesses?

Facing the Risks

Extreme weather events threaten the productivity

Consumers demand green products

Insurance Risk and Costs

Loss of Customers and market share

Costs of adaptation to extreme weather events

Legal Risks

Stakeholders demand green investments

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Challenges drive Green

The greening of supply chains represents one of the most effective ways inwhich companies can fulfil their climate change responsibilities and theurgency of the need for action means that decisions need to be taken now.

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Environmental Key Performance

Indicators (KPIs)

•Which are?

•How were determined?

•Why measure & report?

A carbon footprint is a measure of the impact our activities have on the environment, and in particular climate change.

It relates to the amount of greenhouse gases produced in our day-to-day lives through burning fossil fuels for electricity,

heating and transportation etc.

The carbon footprint is a measurement of all greenhouse gases we individually produce and has units of tones (or kg) of

carbon dioxide equivalent. 14

KPIs

There are direct and indirect Business Risks that threaten companies15

The Past Does Not Reflect the Future

Source: Gap&Gemini

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Why manage and report

environmental performance?Grasping the Opportunities !

Gain & Promote yourself !

It may be cheaper than a commercial spot !

Cost savings and productivity gains

Revenue Opportunity

Fossil fuel independence and Improved efficiencies

Improved sales

Increase customer acquisition and loyalty

Enhance brand positioning and value

Preferred supplier status

Increased attractiveness to the investment community

Improve International appeal

Product and service innovation

Limit insurance risk

Employee recruitment

Employee pride and loyalty

Improved public relations

Licence to operate

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How can a company develop a sustainable green action agenda

For most companies, the path to sustainability begins with the supply chain. After all, the supply chain is where companies move things, make things, store things, and throw things away. It is a crucial part of an organization's environmental footprint. Green supply chain management-the integration of both environmental and supply chain management-is a proven way to reduce a company's impact on the environment while improving business performance.

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How to Green your Supply Chain

Replace materials in the product

Reduce packaging materials Eliminate supply chain steps

Implement more efficient or cleaner processes

Improve energy efficiency of facilities and equipment 19

DELTA

ex. Vivartia, Division of Dairy and Drinks

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DELTA

ex. Vivartia, Division of Dairy and Drinks

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DELTA

www.vivartia.com

actions and initiatives with respect for the Environment

Delta and its factory of concentrate milk in Platy Imathias are certified with ISO 14001, the

standard of environmental management!!!

• Vivartia incorporates environmental policies, programmes and practices in all of its business activities, as an

element of management in all operations.

• During the planning, development and use of its facilities, Vivartia bears in mind, first and foremost, the efficient use

of energy and materials, minimizing negative impact on the environment waste generation, as well as the safe

disposal of industrial waste.

• Vivartia trains its personnel in, and heightens their awareness of environmental issues.

The following measures should be noted in particular:

• Recycling of by-products; edible ones are provided to pig farms.

• Collection and recycling of paper, batteries and other recyclable materials.

• Installation of state-of-the-art filters on all silos.

• Landscaping and improvement of the natural environment at facilities, with extensive tree planting.

• Exclusive use of natural gas -where infrastructure is available- for operations and activities. Where natural gas is not

available propane is used (instead of petroleum), for almost zero emission of pollutants.

Finally, it is of particular importance to Vivartia how returned products are managed, so as to:

• Protect the consumer from the use of expired products.

• Prevent its products from being sent to waste dumps, from where they might be taken for resale.

• Protect the environment by reducing the burden on sanitary landfills.

Thus, Vivartia, in implementation of and European legislation to regulate expired milk quantities and other dairy

products to undergo composting, has proceeded to cooperation with a special Composting Facility. This particular

facility, through the process of breaking down organic materials with the help of micro- organisms, produces a kind of

soil- improvement material (compost) that is completely odourless and increases the fertility of soil without negatively

impacting the environment.22

References1. Impact of Globalization on Environment: How do we measure and analyze it? Soumyananda Dinda1, Department of Economics and

International Development, University of Bath, UK, February 2008

2. Double exposure: assessing the impacts of climate change within the context of economic globalization, Karen L. O'Brien, Robin M.

Leichenko", CICERO, University of Oslo, Norway

3. (JOURNAL OF BUSINESS LOGISTICS, Vol.22, No. 2, 2001) DEFINING SUPPLY CHAIN MANAGEMENT by John T. Mentzer The

University of Tennessee, William DeWitt The University of Maryland, James S. Keebler St. Cloud State University, Soonhong Min Georgia

Southern University, Nancy W. Nix Texas Christian University, Carlo D. Smith The University of San Diego and Zach G. Zacharia Texas

Christian University

4. 2008 Supply Chain Monitor “How mature is the Green Supply Chain?” BearingPoint Management & Technology Consultants, www.escp-

eap.eu/uploads/media European School of Management

5. Greening North America’s Trade Corridors, Dr. Stephen Blank, Ross Distinguished Visiting Professor of Canada-US Business and

Economic Relations Western Washington University

6. Dr. Barry E. Prentice, Professor, Supply Chain Management, University of Manitoba

7. www.defra.org.uk

8. Gap & Gemini, Future Supply Chain 2016 Report

9. Securing the Future – The UK Government Sustainable Development Strategy, March 2005.

10. Framing Climate Risk in Portfolio Management, Ceres World Resources Institute

11. http://ec.europa.eu/environment/climat/kyoto.htm

12. Achieving high performance in an Era of climate change, Accenture report

13. Millennium Ecosystem Assessment, a 4-year study involving 1,360 experts worldwide. http://www.millenniumassessment.org

14. Five Propositions, “Environment and Governance Project” of the International Institute for Sustainable Development

15. IPCC’s 3rd Assessment Report, in 2001

16. Aberdeen Group, Building a Green Supply Chain for Fun and Profit, March 2008

17. Article at (http://www.logisticsit.com/absolutenm/templates/article-retail.aspx?articleid=4283&zoneid=49)

18. http://www.globalcarbonexchange.com/carbon-impact-on-business/business-risks.html

19. New Zealand Business Council for Sustainable Development, www.nzbcsd.org.nz/supplychain

20. http://www.unepfi.org

21. http://www.mhia.org/news/industry/7056/the-green-supply-chain By Patrick Penfield Whitman, Sch of Management Syracuse University

22. http://www.awarenessintoaction.com/whitepapers/green-supply-chain-sustainable-programs.html

23. The Lean and Green Supply Chain: A Practical Guide for Materials Managers and Supply Chain Managers to Reduce Costs and Improve

Environmental Performance

24. www.Vivartia.com 23

Vă mulţumesc!!

FONDUL SOCIAL EUROPEAN Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 -2013 Axa prioritară nr. 3 „Creşterea adaptabilităţii lucrătorilor şi a întreprinderilor” Domeniul major de intervenţie 3.2. „Formare şi sprijin pentru întreprinderi şi angajaţi pentru promovarea adaptabilităţii” Titlul proiectului: : „COPMED – COMPETENTE PENTRU PROTECTIA MEDIULUI” Contract nr. POSDRU/81/3.2./S/52242 Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007-2013 –„Investeşte în oameni!