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PRME Webinar on Supply Chain Sustainability
7 June 2013 – 10:00 AM EDT
Technical Difficulties: If you have technical issues, please let us know by typing a message in the Questions pane (A). You can raise your hand (B) if we do not respond.
Q&A: We will be taking questions on content at the end, but you can send them to us throughout the webinar by using the Questions pane (A). Please specify to whom the question should be directed. A
B
Questions
Agenda
Introduction to PRME
Jonas Haertle, Head, PRME Secretariat
Introduction to Supply Chain SustainabilityAnita Househam, Issue Manager, Supply Chain Sustainability, UN Global Compact
Members of the Advisory Group on Supply Chain Sustainability• TRACEABILITY: Peter Perrault, Lead Consultant, Infosys Sustainability• ANTI-CORRUPTION: Cecilie Hersleth, Legal Manager, Business Assurance, Telenor
Proposal for Collaboration
Mads Øvlisen, Chair, UNGC Advisory Group on Supply Chain Sustainability
Q & A: Remaining Time
Principles for Responsible Management Education (PRME)
• Launched in 2007, UN-backed initiative to change the curriculum, research and learning methods of management education based on UN Global Compact/ Corporate Sustainability approach
• Leading global platform for open dialogue and collaborative learning on responsible management and leadership education
• The Six Principles of PRME are inspired by internationally accepted values and seek to establish a process of continuous improvement among institutions of management education
• 2012/2013: Introduction of PRME Regional Chapters and PRME Champions group
• 495+ business schools/ management-related academic institutions and universities from 80+ countries
PRME Working Group Projects & Reports
Anti-Corruption in Curriculum
Change
Poverty, a Challenge for Management Education
Gender Equality
UN Global Compact -Supply Chain Sustainability3rd Advisory Group Meeting
Mexico City, Mexico
2-4 March 2011
Supply Chain Sustainability
- An Introduction
7 June 2013
Anita Househam, Issue Manager, Supply Chain Sustainability
Purpose – Bringing it Together
The UN Global Compact Advisory Group on Supply Chain Sustainability
• A.P. Moller—Maersk (Denmark)
• ArcelorMittal (Global)• Boyner Holding (Turkey)• BSR (Global)• Cemex (Mexico)• Cisco Systems Inc. (USA)• Det Norske Veritas AS (DNV)
(Norway)• Ford Motor Company (USA)• Hitachi, Ltd. (Japan)• Inditex S.A. (Spain)• Infosys Technologies Ltd
(India)• Innovation Norway (Norway)
• Mahindra & Mahindra Limited (India)
• Nestlé S.A. (Switzerland)• Nokia (Finland)• Reed Elsevier Group plc (UK)• Restaurantes TOKS (Mexico)• Safaricom Limited (Kenya)• Sedex (UK)• Social Accountability
International (SAI) (Global)• Arche Advisors (USA)• Telenor Group (Norway)• Volkswagen
Aktiengesellschaft (Germany)
Tools and Resources Supply Chain Sustainability - A Practical Guide for Continuous Improvement
Launched June 2010 Practical guidance to develop a sustainable supply chain
programme Features numerous good corporate practices and other
initiatives Based on the values and principles of the UN Global
Compact 2011: Developed SME Quick Guide: Supply Chain
Sustainability – A Practical Guide for Continuous Improvement for Small and Medium Enterprises
Tools and Resources
Website: Sustainable Supply Chains – Resources and Practices
‘One-stop-shop’ for business
Includes information about sustainable supply chain:• Initiatives• Resources • company practices
Articles searchable by issue area, sector, region and practice category
Register and submit articles
http://supply-chain.unglobalcompact.org/
Tools and Resources
Quick Self-Assessment & Learning Tool
Launched June 2012 Identify strengths and
areas of improvement Benchmark your
company’s approach Scorecard with
benchmarking results and recommendations
References to additional resources, company practices and initiatives
http://supply-chain-self-assessment.unglobalcompact.org/
Additional initiatives/work areas
Promote Good Practices• Webinar Series • Good Practice Notes (in collaboration with HRWG)• Note on Occupational Health & Safety (in collaboration with
Better Work/ILO/IFC)• Engagement with Global Compact Local Networks
Issue Specific Activities• Practical Guide on Supply Chain Traceability – initial stages• Stand Together Against Corruption –A Practical Guide – final
stages• Occupational Health & Safety - emerging
Peter Perrault Lead Consultant, Infosys Sustainability
An Overview of the Traceability Task Force
Process
1.Research & Consolidate Resources
2.Analyze & Define Key Issues
3.Survey AG and Conduct In-Depth Interviews
4. Incorporate Findings and Revise Scope
5.Finalize & Present to AG
6.Phase II Recommendations
Inputs from BSR, Infosys, Nestlé, Sedex, and UNGC; More than 40 sources covering 20+ sectors
•Early findings:• Overarching categories: Human Rights, Labor, Anti-Corruption, Environment –
strong interrelationship among issues• Prioritization and approach are key questions for firms• Highly driven by industry, sector or commodity; a/o by phase-specific activities• Existing policies/regulations may assist in reporting guidelines• Broader goal to enhance transparency and collaboration to understand
impacts – traceability doesn’t inherently mean physical tracing•Existing definitions: ISO 8402 (ISO 9000)•Existing Standards & Initiatives Include:
Review of Completed Research
Forestry Stewardship
Council (FSC)
Better Cotton Initiative (BCI)
GS1 Traceability Standard
The Produce Traceability Initiative
(PTI)
Can-Trace UTZ Certified Fair Trade CertifiedMarine Stewardship
Council
Combined Bar Chart Ranking Issues of Importance for Respondents’ Company (12 respondents)
Survey Findings
Wood Cocoa Minerals
Companies Interviewed:•IKEA•Staples•Tetra Pak•B&Q
Combination of strong legal requirements & strong global, collaborative traceability scheme makes traceability a worthwhile strategy
Timber traceability is well-established, and the companies interviewed have been engaged in this process for a long time
Companies Interviewed:•Nestlé•Mondeléz (TBC)•Mars (TBC)
Companies aim to:•Secure supply/improve farmer practices•Address key labor issues – child labor and slavery
Alternative strategies:•direct purchase of cocoa•invest in farm communities•support collaborative programs, e.g. – ICI; focus on farm level capacity building and training•Leverage existing labeling schemes, e.g. – Fair Trade
Companies Interviewed:•Ford•Volkswagen•Hitachi•Telenor
Dodd-Frank and potential European legislation affect companies’ need to ensure their products are conflict-free
Highly visible topic with much media attention
EICC/GeSI Conflict-Free Smelter Program currently the most established program; does not affect all sectors
Firms are early in the development process
Interview Findings by Commodity
Interview Findings: Where Traceability Works
• Strong internal policy & collaborative scheme• Buyers must adhere to policy• Top management support • Integrated procurement processes• Resources dedicated to implementation
• Must certify to required scheme• Must document proven chain of custody• Subject to audits
• Certified as part of chain of custody• Subject to random audits by relevant
certification bodies
• Certify source/site of raw material• Subject to regular audits
Standard/certification for:•Source •Chain of custody •Processes of direct suppliers and brand/ companyConduct auditsProvide Data Store
Co
llab
ora
tive
Glo
bal
Sch
eme
Shaping an Effective Traceability Program
Phase II Recommendation: Develop 3 Part Guide
Anti-Corruption – A Practical Guide
PRME Webinar on Supply Chain Sustainability, 7.6.2013
Cecilie Hersleth, Legal Manager, Business Assurance
1. Introduction - Aim of our work
• Cooperation
• Best practise sharing
• Networking
• Developing useful tools and guiding documents
22
UNGC Task force
• A practical guide with operational guidance on managing anti-corruption, focused specifically on the supply chain
• Short, basic and inspiring
• Supplementary to other UNGC documents
• Preventive day to day work
23
What does the new Guide include?
• Examples of corruption in the supply chain
• Main elements of an efficient anti-corruption program
• Preventive corruption activities towards suppliers
• Company examples
• References to other UNGC documents
24
Thank you
Proposal for Collaboration
Incorporating the sustainability agenda in the supply chain management curriculum Brief note for academics Platform for existing tools, curricula, publications etc Template workshops for academics
Understanding supply chain sustainability, impacts and needs Analysis of GC participants on management of SCS Case Studies Research on potential impacts of existing tools/resources
Contribution to existing activities of the Advisory Group Analysis of Traceability and social auditing systems Case studies
Thank You
Thank you for joining us today. Presentation slides and a recording of the webinar
will be available on the PRME website.
If you have any additional questions, please contact: Anita Househam: [email protected] (UNGC)
Magdalena Thurig: [email protected] (PRME)